Category: Australia

  • MIL-OSI China: Shanghai opens annual Lujiazui Coffee Festival

    Source: China State Council Information Office 3

    Shanghai continues to lead China’s coffee market with 9,553 coffee shops, officials announced during a news conference on Wednesday at the opening of the Lujiazui Coffee Festival in Pudong New Area.

    Jin Wencheng, director of the Ministry of Agriculture and Rural Affairs’ rural economy research center, released the Global Coffee Industry Development Trends Insight Report and related index at the event, highlighting that China’s annual coffee consumption reached 280,000 metric tons last year, with customers patronizing approximately 157,000 coffee shops nationwide.

    Jointly launched by the China Media Group Shanghai Bureau — the financial program center of CMG — and the research center, the report further pointed out that the value of the coffee industry in China reached 265.4 billion yuan ($37.3 billion) in 2023, an increase of over 30 percent year-on-year. The number of coffee consumers in the country is close to 400 million.

    “The Chinese coffee market has seen significant expansion, emerging as a standout in the global coffee industry,” Jin said, adding that the report and index are constructed based on three key dimensions: industry scale, development quality and industry resilience.

    China’s coffee production increased from 114,000 tons in 2020 to 146,000 tons last year, the report noted. Yunnan province accounts for 98 percent of the national output, making it the primary coffee-producing region in China.

    “Refinement and branding are leading the high-quality development of the domestic coffee industry in China,” said Jin, noting that the proportion of premium domestic coffee products has significantly increased, reaching 22.7 percent this year.

    “Domestic coffee brands are rapidly emerging, and the fusion of coffee culture with tourism has become a new business model,” Jin added.

    On a global scale, coffee production has shown a growth recovery, according to the report.

    Last year, global coffee consumption reached 10.62 million tons, marking a 2.2 percent increase from the previous year, with a total daily consumption of 3 billion cups of coffee.

    Apart from the emerging market in China, countries and regions such as Brazil, the Philippines and South Korea are also experiencing rapid growth in coffee consumption.

    The bustling crowd of coffee enthusiasts at the Lujiazui Coffee Festival — the news conference venue — attests to the fervor of the coffee market.

    Shanghai, which has more coffee shops than any city in China, launched the ninth edition of the coffee festival on Wednesday, which will run until Oct 27.

    Taking place at Shanghai’s Lujiazui Central Greenland, the festival brings together over 260 selected brands, more than 100 boutique coffee shops and over 20 influencers from the industry hailing from over 70 cities worldwide. It serves as a platform for the exchange of creative ideas and the exhibition of the latest coffee-related products.

    Manhattan Coffee Roasters from Rotterdam, Netherlands; Ghostbird Coffee Roastery from Kuala Lumpur, Malaysia; and Proud Mary Coffee Roasters from Melbourne, Australia, are among the 12 international specialty coffee brands that are making their domestic debut at the festival.

    Since its inception in 2016, the festival has become a benchmark cultural experience in the coffee industry in China, drawing the cumulative participation of over 850,000 people.

    “As the brand influence of the Lujiazui Coffee Festival continues to grow, it will not only bring more global coffee flavors to Pudong, but also explore new pathways for Chinese domestic coffee to enter the international market,” said Chen Bai, director of the festival.

    MIL OSI China News

  • MIL-OSI Australia: Do your best to help stop Perth pest

    Source: Government of Western Australia

    The City is calling on the community to join the fight against the invasive Polyphagous shot-hole borer (PSHB).

    First detected in Perth in 2021, the tiny, wood-boring beetle has been detected in trees across Perth, with a quarantine notice quickly put in place to support the Department of Primary Industries and Regional Development’s (DPIRD) response.

    The City is working closely with DPIRD to prevent the spread of the PSHB, and encourages the community to use the MyPestGuide app to report suspected sightings.

    Mayor Linda Aitken said the City needed residents’ support to help stop the spread of the PSHB.

    “The PSHB could significantly impact the City of Wanneroo’s urban canopy if it were to become established here,” she said. 

    “It’s important that we all check our trees for signs and report any suspected sightings through the app, to allow DPIRD to investigate.

    “Protecting and increasing our canopy cover and vegetation is a key goal for the City, as set out in our Urban Forest Strategy.”

    The City of Wanneroo currently sits in Zone B of the Quarantine Area. This means residents:

    • cannot move untreated or unseasoned wood outside the Quarantine Area, unless chipped to pieces that are 2.5 cm or less in diameter,
    • cannot move plant materials, including living plants, that are greater than 2cm in diameter outside the Quarantine Area,
    • must ensure any machinery used to handle green waste is cleaned before it can be moved outside the Quarantine Area, can move wood or plant materials, including living plants, into Zone A.

    Find out more about the PSHB and how you can help prevent its spread.

    MIL OSI News

  • MIL-OSI Australia: Staff and volunteers celebrated at the NSW Health Awards

    Source: New South Wales Government 2

    Headline: Staff and volunteers celebrated at the NSW Health Awards

    Published: 25 October 2024

    Released by: Minister for Health, Minister for Medical Research, Minister for Mental Health


    Staff and volunteers across the NSW health system have been celebrated for their dedication, compassion, innovation and outstanding achievements at the 2024 NSW Health Awards, held at the International Convention Centre in Sydney last night.

    The awards recognise the people, teams and programs in NSW Health that make such a significant contribution to the health and wellbeing of patients of the communities they care for. It is – most of all – a celebration of the team enriching health in millions of ways every day.

    Some of the innovative projects to win awards across the 13 categories included the use of artificial-intelligence to develop a wound app reducing average healing times, research to develop oral insulin as an alternative for injectible insulin expanding treatment options for diabetics and establishing a video interpreting service for multicultural communities.

    Awards were presented by Minister for Health Ryan Park, Minister for Medical Research David Harris, Parliamentary Secretary for Health and Regional Health Dr Michael Holland, and NSW Health Secretary Susan Pearce AM.

    186 nominations were received across 13 categories, including:

    • Staff Member of the Year Award
    • Volunteer of the Year Award
    • Secretary’s Award
    • Environmental Sustainability Award
    • Excellence in Aboriginal Healthcare Award
    • Excellence in Multicultural Healthcare Award
    • Excellence in the Provision of Mental Health Services Award
    • Health Innovation Award
    • Health Research Award
    • Keeping People Healthy Award
    • Patient Safety First Award
    • People and Culture Award
    • Transforming Patient Experience Award

    The full list of winners and finalists and their projects is available on the ​​NSW Health website.​​

    Quotes attributable to Minister for Health Ryan Park:

    “I want to congratulate the winners and all 42 finalists for their outstanding contributions to our health system. Every day in NSW Health we see fantastic examples of care, dedication and innovation when it comes to improving the health and wellbeing of people across NSW.

    “It’s fantastic to see that five of the NSW Health Award winners are from rural and regional areas, highlighting the great care available to communities right across the state.

    “I would particularly like to highlight the great work of Dr Nhi Nguyen from Nepean Blue Mountains Local Health District, who was named Staff Member of the Year for her leadership across initiatives aimed at bridging the gap between clinicians, policy makers and the community.”

    Quotes attributable to Minister for Mental Health Rose Jackson:

    “I offer my congratulations to the South Western Sydney Local Health District who took out the Excellence in the Provision of Mental Health Services award for their Aboriginal Mental Health Transfer of Care project.

    “This work has had a positive impact on hundreds of people and their communities, with a team of specialists set up to provide culturally responsive care and better discharge planning for Aboriginal and Torres Strait Islander patients, nearly halving unplanned re-admissions.

    “Across every nomination in this category we see shining examples of a commitment to patient care and safety so I personally want to thank all the finalists for their dedication to providing compassionate mental health services right across the state.”

    Quotes attributable to Minister for Medical Research David Harris:

    “Sydney Local Health District were a deserving winner of the Health Research category, for their ground-breaking work to expand treatment options for people with diabetes. The team has created an oral insulin treatment that is preparing for clinical trials early next year.

    “It was a pleasure to celebrate the people helping position NSW as a global leader in health and medical research, and the work in Sydney Local Health District reflects many of the amazing initiatives underway in our state.”

    Quotes attributable to NSW Health Secretary Susan Pearce AM:

    “NSW Health is very proud to celebrate the people and teams who are enriching health in millions of ways every day – our incredible healthcare staff and volunteers.

    “All of the nominees, finalists and winners reflect the incredible work our people do, in a wide variety of roles right across the public health system., and I thank them sincerely for it.”

    MIL OSI News

  • MIL-OSI Australia: New technology to detect floods and bushfires

    Source: New South Wales Government 2

    Headline: New technology to detect floods and bushfires

    Published: 25 October 2024

    Released by: Minister for Emergency Services, Minister for Innovation, Science and Technology


    Testing will soon begin on cutting-edge technology to improve early warnings about floods and bushfires in NSW.

    The NSW Government this week launched a proof-of-concept phase as part of a $3.3 million election commitment to build a natural hazards detection system.

    The testing will explore a range of scenarios to enhance the state’s response to natural hazards including innovative technology to detect floods and bushfires that can:

    • support early identification of flood water across roads
    • monitor rainfall and soil moisture data to predict floods
    • identify fire ignitions in remote locations
    • monitor soil moisture and fuel loads to support improved fire hazard reduction.

    Individual grants of up to $50,000 will be awarded to successful applicants through the program to support the testing of technologies over a six-month period to demonstrate their feasibility and benefits.

    The program delivers on an election commitment by the Minns Labor Government and is being led by the Office of the NSW Chief Scientist & Engineer (OCSE) in collaboration with the NSW Reconstruction Authority (RA).

    The initiative directly responds to key recommendations from the 2020 Bushfire Inquiry and the 2022 Flood Inquiry, which called for the use of advanced detection systems to provide earlier warnings and give communities more time to respond to natural hazards.

    Businesses are encouraged to submit proposals addressing these challenges, with the potential to progress to the next stage of the program which includes scaling up and piloting technologies in real-world settings.

    Applications for Phase 1 are open until early December. Grant recipients from Phase 1 will be eligible to apply for Phase 2 through a competitive process.

    The outcomes of the pilot will help shape the design of a final product, ready for deployment in hazard-prone areas of NSW. For more information and to apply, visit: www.chiefscientist.nsw.gov.au/nhds.

    Minister for Emergency Services Jihad Dib said:

    “The Minns Labor Government is delivering on its election commitment to better protect communities living in high-risk areas that are prone to floods and fires through better detection systems.”

    “We are helping to develop new detection technologies and testing them in unique Australian conditions.”

    We are working to identify solutions that allow people to better anticipate natural disasters and prepare for evacuations.”

    “This program is not only important to help reduce the impact of disasters, but ultimately can help save lives.”

    Minister for Innovation, Science & Technology, Anoulack Chanthivong said:

    “This funding demonstrates the NSW Government’s commitment to innovation and technology to help improve our response to and preparedness for natural hazards.”

    “Supporting businesses to field-test their technologies with NSW Government agencies allows them to bring their innovations one step closer to commercialisation.”

    Professor Hugh Durrant-Whyte, Office of the Chief Scientist and Engineer said:

    “NSW is looking to the future and investigating how cutting-edge technology can transform our response to natural hazards.”

    “By undertaking trials of groundbreaking technology solutions in real world conditions we will ensure that NSW residents are better prepared for natural hazards now and into the future”.   

    MIL OSI News

  • MIL-Evening Report: Chaotic scenes at Travis Scott’s Melbourne concert: what is the role of artists in crowd behaviour?

    Source: The Conversation (Au and NZ) – By Milad Haghani, Senior Lecturer of Urban Analytics & Resilience, UNSW Sydney

    Travis Scott’s Melbourne concert on October 22 lived up to his reputation for chaotic performances. Fans, eager for a high-energy show, were met with unruly scenes both inside and outside the venue.

    Reports described concertgoers clashing, throwing plastic bottles and dismantling barricades.

    As some fans attempted to breach security barriers to enter the mosh pit, physical altercations with security guards erupted. One fan reportedly suffered a seizure after trying to bypass barricades.

    These occurrences, at times, were reminiscent of the dangerous atmosphere at Scott’s past concerts, including the fatal 2021 crowd crush at Astroworld Festival in Houston.

    Modern crowd psychology shows us collective behaviour is shaped by perceived group norms, and these norms can either foster safety or encourage chaos. This performance – contrasted with other recent big concerts in Australia – highlights the urgent need to rethink the roles of performers in crowd management.

    Defiance is normalised

    While performing, Scott often urges fans to lose control and embrace the chaos. This induces behaviours such as mosh pits, crowd surfing, and even at times, ignoring fans in distress.

    Scott’s performances are characterised by his desire to have his energy reciprocated by the audience, which creates an environment where defiance is normalised.

    Statements such as “forget security, this is for y’all” push fans toward risky behaviours, making these concerts highly charged and, at times, uncontrollable.

    While this may foster excitement and adrenaline, it also sets the stage for unsafe crowd dynamics.

    The 2021 Astroworld tragedy, in which ten people died and thousands were injured in a crowd surge, should have served as a wake-up call about the elevated risks at Scott’s performances.

    Despite signs of crowd distress, Scott continued performing for nearly 40 minutes after Houston officials started responding to the mass casualty event. Despite visible signs of crowd distress, the show continued.

    More than 300 injury lawsuits were settled between festivalgoers and Scott and concert promoter Live Nation. Plaintiffs argued the concert’s organisers failed to act swiftly to prevent the disaster once the crowd surge became life-threatening.

    Though the Melbourne concert didn’t reach the same tragic levels, the chaotic scenes were reminders of the ongoing risks at Scott’s performances.

    Incidents like the one in Melbourne – with security struggles, fan injuries and disorder – should serve as near-miss warnings. The same volatile energy persists in Travis’ concerts and could amount to risky behaviour, luckily not of catastrophic consequences in this case.

    Different artists set different safety cultures

    While Scott’s concerts are known for their chaotic energy, artists such as Taylor Swift present a stark contrast in terms of crowd dynamics and audience behaviour.

    Swift’s recent Australian shows, which hosted record-breaking attendance numbers, ran smoothly.

    The difference in audience behaviour isn’t just about the genre of music and the energy and culture that comes with it. It’s also about how the artist interacts with the crowd. Swift creates an atmosphere of excitement while maintaining a sense of order, often engaging the audience in a way that fosters respect for boundaries and safety.

    Swift has a strong track record of prioritising audience safety and wellbeing during her concerts.

    In many shows, she stopped to address issues such as heat exhaustion or crowd distress, by encouraging fans to stay hydrated and to look out for each other.

    At her Edinburgh show in June 2024, she paused the concert three separate times to assist fans who were struggling in the crowd.

    ‘Perceived contextual norms’ are at play

    Crowd psychology emphasises how individuals in large gatherings adjust behaviour based on the perceived norms of the group.

    The Social Identity Theory of crowds explains that people align their behaviour with the crowd’s collective identity.

    A shared social identity within a crowd increases the likelihood of people adopting collective norms – even if those norms encourage risk-taking. Perceived group norms can override personal caution in favour of behaviour that is seen as accepted or approved by the group.

    Based on these theories, leaders influence group behaviour by reinforcing collective identity and norms.

    In the case of music performers, artists can guide actions that align with the group’s sense of “us”. This can ultimately lead to shifts in behaviour towards safety or risk-taking.

    What now?

    The contrasting experiences between Scott’s and Swift’s concerts offers a crucial lesson in crowd management: the role of leadership and the norms set by performers.

    We need to rethink the roles of performers in crowd management. Artists such as Scott wield immense influence over crowd dynamics, and this power should be harnessed more consciously.

    The chaotic, high-energy nature of Scott’s performances is part of his identity. Fans attend his shows expecting that intensity.

    The key difference lies in how the artist can create a high-energy environment without compromising fan safety. Encouraging fans to disregard security is an example of where defiance can stretch too far. The line between excitement and chaos becomes blurred. The messaging needs to shift to maintaining intensity but within boundaries that safeguard the audience.

    Awareness around how crowd behaviour is influenced by artists and the group norms that they set can help walk the line between excitement and chaos.

    Milad Haghani does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Chaotic scenes at Travis Scott’s Melbourne concert: what is the role of artists in crowd behaviour? – https://theconversation.com/chaotic-scenes-at-travis-scotts-melbourne-concert-what-is-the-role-of-artists-in-crowd-behaviour-242115

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Security: AUKUS Partners Complete Successful Tests of Autonomous and Networked Systems in Maritime Experimentation

    Source: United States INDO PACIFIC COMMAND

    In a significant development for maritime security, the United States, Australia, and the United Kingdom (AUKUS) have completed successful tests of several autonomous and networked systems during a three-week maritime experimentation called Autonomous Warrior 24 in Australia. The event was part of the Maritime Big Play (MBP) initiative and ongoing efforts to develop AUKUS Pillar II capabilities, a trilateral collaboration to improve maritime awareness through networked autonomy, decision advantage, and enhanced strike.

    The Maritime Big Play is a series of integrated trilateral experiments and exercises that are enhancing capability development, improving interoperability, and increasing the sophistication and scale of autonomous systems in the maritime domain. Australia led the Autonomous Warrior event, the signature MBP event in 2024. Other events associated with Maritime Big Play included the Robotic Experimentation and Prototyping Augmented by Maritime Unmanned Systems (REPMUS); and Technology Readiness Experimentation (T-REX).

    Through these experiments and exercises, AUKUS partners are further testing and refining the ability to jointly operate uncrewed maritime systems, share and process maritime data from all three nations, and provide real-time maritime domain awareness to support decision-making.

    “Autonomous Warrior/Maritime Big Play creates a unique opportunity for our three countries to work together, which will ultimately improve operational efficiency and allow us to work more cohesively against common threats,” said Heidi Shyu, Under Secretary of Defense for Research and Engineering. “This collaborative approach enables us to reduce acquisition, maintenance, and training cost by creating economies of scale.”

    The technologies tested during the October event support operations from deep under water to the edge of space. This included software-defined acoustic modems, multi-model autonomous underwater and surface vessels, and low-cost attritable unmanned surface vehicles. The tests also featured a low-cost gondola, which supports operations in the upper stratosphere with minimum manpower or logistics requirements, and T-200 high-altitude balloons, which provide resilient communications in denied environments from the stratosphere.

    A versatile and robust software-defined network architecture called Multi-Domain Uncrewed Secure Integrated Communications (MUSIC) was tested for its ability to enable seamless communication and coordination across diverse unmanned systems and operational environments. The Common Control System (CCS) was also featured in the exercise, built on an open architecture to provide uncrewed vehicles hardware and software that works across several different systems. This effort supports future work to create an AUKUS-wide Common Control System, fusing best elements of the three countries’ existing systems.

    “AUKUS partners have long histories of working together on defense and security issues, and have deep, enduring partnerships based on shared values, said Shyu. “By investing in novel and innovative capabilities directly aligned to AUKUS mission priorities, as well as making future advancements in emerging technologies like AI and Quantum, we support a more stable region — one where all nations are empowered to make their own sovereign decisions free from coercion — a world that centers on hope for the opportunity and prosperity of the future.”

    MIL Security OSI

  • MIL-OSI: FirstCash Reports Record Third Quarter Operating Results; Strength in U.S. Pawn Segment Drives Record Revenue and Earnings; Declares Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions through American First Finance (“AFF”), today announced operating results for the three and nine month periods ended September 30, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in November 2024.

    Mr. Rick Wessel, chief executive officer, stated, “FirstCash achieved record revenue and earnings results for both the third quarter and year-to-date periods. Impressive third quarter achievements also included a fifth consecutive quarter of double-digit growth in same-store pawn receivables for the U.S. pawn segment. The LatAm pawn segment also saw continued growth in local currency pawn revenues and receivables, while AFF recorded a 14% increase in third quarter gross origination volumes driven primarily by 25% growth in new merchant locations.

    “Expansion of retail pawn locations continues to be robust as well, with the opening of 16 new pawn stores in the third quarter and the combined opening and acquisition of 83 total stores during the first nine months of this year. Growth in the number of stores and earning assets, coupled with consistent shareholder returns through dividends and share repurchases, continue to be funded primarily through operating cash flows.”

    This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

        Three Months Ended September 30,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $ 837,321   $ 786,301   $ 837,321   $ 786,301
    Net income   $ 64,827   $ 57,144   $ 75,179   $ 70,775
    Diluted earnings per share   $ 1.44   $ 1.26   $ 1.67   $ 1.56
    EBITDA (non-GAAP measure)   $ 138,134   $ 129,350   $ 139,278   $ 132,985
    Weighted-average diluted shares     44,970     45,374     44,970     45,374
        Nine Months Ended September 30,
        As Reported (GAAP)   Adjusted (Non-GAAP)
    In thousands, except per share amounts   2024   2023   2024   2023
    Revenue   $ 2,504,703   $ 2,299,662   $ 2,504,703   $ 2,299,662
    Net income   $ 175,268   $ 149,712   $ 207,266   $ 184,028
    Diluted earnings per share   $ 3.88   $ 3.27   $ 4.58   $ 4.02
    EBITDA (non-GAAP measure)   $ 388,372   $ 348,291   $ 392,752   $ 350,028
    Weighted-average diluted shares     45,214     45,747     45,214     45,747
                             

    Consolidated Operating Highlights

    • Gross revenues totaled $837 million in the third quarter, an increase of 6% on a U.S. dollar basis and 9% on a constant currency basis compared to the prior-year quarter. Year-to-date revenues totaled $2.5 billion, an increase of 9%, in both dollars and constant currency, compared to the prior-year period.
    • Diluted earnings per share for the third quarter increased 14% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 7% compared to the prior-year quarter. Year-to-date diluted earnings per share increased 19% over the prior-year period on a GAAP basis while adjusted diluted earnings per share increased 14% compared to the prior-year period.
    • Net income for the third quarter increased 13% over the prior-year quarter on a GAAP basis while adjusted net income increased 6% compared to the prior-year quarter. Year-to-date, net income totaled $175 million on a GAAP basis while adjusted net income was $207 million. 
    • For the trailing twelve month period ended September 30, 2024:
      • Revenues totaled a record $3.4 billion
      • Net income totaled $245 million on a GAAP basis while adjusted net income was $300 million
      • Adjusted EBITDA was $554 million
      • Operating cash flows were $441 million and adjusted free cash flows were $217 million

    Store Base and Platform Growth

    • Pawn Stores – 16 new pawn locations were added in the third quarter through acquisitions and new store openings. Year-to-date through September 30, 2024, a total of 83 pawn locations have been added:
      • One U.S. store was acquired in Georgia during the third quarter. Year-to-date through September 30, 2024, a total of 29 new locations have opened or been acquired in the U.S.
      • There were 15 new store openings in Latin America in the third quarter which included 11 locations in Mexico and four locations in Guatemala. Year-to-date through September 30, 2024, a total of 54 new locations have opened in Latin America.
      • As of September 30, 2024, the Company had 3,025 locations, comprised of 1,201 U.S. locations and 1,824 locations in Latin America.
    • Retail POS Payment Solutions (AFF) Merchant Partnerships – At September 30, 2024, there were approximately 13,500 active retail and e-commerce merchant partner locations, representing a 25% increase in the number of active merchant locations compared to a year ago.

    U.S. Pawn Segment Operating Results

    • Segment pre-tax operating income in the third quarter of 2024 was a record $98 million, an increase of $14 million, or 16%, compared to the prior-year quarter. The resulting segment pre-tax operating margin was 25% for the third quarter of 2024 which is consistent with the margin for the prior-year quarter.
    • Year-to-date segment pre-tax operating income increased by $48 million, or 20%, compared to the prior-year period. The pre-tax operating margin increased to 25% for the year-to-date period, as compared to the 24% margin for the prior-year period.
    • Pawn receivables continued to grow to record levels, increasing 12% in total at September 30, 2024 compared to the prior year. The increase in total pawn receivables was driven by a 4% increase in the weighted-average U.S. store count coupled with an impressive 10% same-store increase. The same-store increase was driven by a 7% increase in average loan size and a 3% increase in the number of loans outstanding.
    • Pawn loan fees increased 13% for the third quarter and 18% year-to-date, while on a same-store basis, pawn loan fee revenue increased 8% for the quarter and 11% year-to-date compared to the respective prior-year periods. The increased pawn loan fee revenue reflected both store growth and continued growth in demand for pawn loans.
    • Retail merchandise sales increased 15% in the third quarter of 2024 compared to the prior-year quarter, while same-store retail sales increased 7% compared to the prior-year quarter.
    • Retail sales margins were 43% for the third quarter, improving sequentially over the second quarter and in-line with the prior-year margins. Year-to-date margins were 42% compared to 43% in the prior-year period.
    • Annualized inventory turnover was 2.8 times for the trailing twelve months ended September 30, 2024, which equaled the prior-year annualized inventory turnover. Inventories aged greater than one year at September 30, 2024 remained low at 2% of total inventories.
    • Operating expenses for the third quarter increased 12% in total due to the 4% weighted-average store count growth over the past year and increased same-store expenses of 6% compared to the prior-year period.

    Latin America Pawn Segment Operating Results

    Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the third quarter of 2024 was 18.9 pesos / dollar, an unfavorable change of 11% versus the comparable prior-year period, and for the nine month period ended September 30, 2024 was 17.7 pesos / dollar, a favorable change of 1% versus the prior-year period.

    • Third quarter segment pre-tax operating income totaled $38 million, a 6% decline on a U.S. dollar-basis compared to the prior year due primarily to an 11% decline in the Mexican peso exchange rate. On a constant currency basis, segment income increased 2% for the quarter. The resulting pre-tax operating margin was 19% compared to 20% in the prior-year quarter.
    • Year-to-date segment pre-tax operating income totaled $107 million, a 4% decline on a U.S. dollar-basis compared to the prior-year period due primarily to increased labor costs and store expansion expenses as described further below. The year-to-date pre-tax operating margin was 18% compared to 19% in the prior-year period.
    • While total and same-store pawn loan fees in the third quarter decreased 4% on a U.S. dollar-basis, they increased 6% on a constant currency basis compared to the prior-year quarter. Year-to-date pawn loan fees increased 7%, or 6% on a constant currency basis, compared to the prior-year period. Same-store pawn loan fees were up 6%, both in total and on a constant currency basis, compared to the prior year-to-date period.
    • While total and same-store receivables at September 30, 2024 were down 4% on a U.S. dollar basis, they increased 6% on a constant currency basis compared to the prior year.
    • Both total and same-store retail merchandise sales in the third quarter of 2024 decreased 3% on a U.S. dollar basis, but increased 7% on a constant currency basis compared to the prior-year quarter. Year-to-date retail merchandise sales increased 4% in total and on a constant currency basis while same-store retail merchandise sales increased 4%, or 3% on a constant currency basis.
    • Retail margins were 35% for the third quarter of 2024 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended September 30, 2024 compared to 4.3 times in the prior-year period. Inventories aged greater than one year at September 30, 2024 remained extremely low at 1%.
    • Operating expenses decreased 1% in total and 2% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts, accelerated store opening activity and higher labor costs (due primarily to further increases in the federal minimum wage and other mandated benefit programs), along with other inflationary impacts.

    American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

    • Third quarter segment pre-tax operating income totaled $30 million compared to $39 million in the prior-year quarter, as a significant $35 million dollar increase in gross transaction origination volume over the same quarter last year drove an increase in up-front lifetime lease and loan loss provisioning of approximately $10 million.
    • Year-to-date segment pre-tax operating income totaled $89 million, a 1% increase over the prior-year period which was also generally consistent with year-to-date gross origination activity.
    • Segment revenues for the quarter, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, were flat compared to the prior-year quarter while increasing 4% year-to-date.
    • Gross transaction volume of lease and loan originations during the third quarter increased $35 million, or 14%, compared to last year, driven primarily by the 25% increase in active merchant door counts and continued growth in non-furniture verticals. Excluding furniture, third quarter origination volume increased approximately 35%. For the year-to-date period, overall gross transaction volume increased 5% over the same prior-year period and was up 23% excluding furniture.
    • Combined gross leased merchandise and finance receivables outstanding at September 30, 2024 increased 1% compared to the September 30, 2023 balances.
    • The combined lease and loan loss provision as a percentage of the total gross transaction volume originated was 28% for the third quarter of 2024, compared to the 29% provisioning rate in the third quarter of 2023. The resulting allowance on combined leased merchandise and finance receivables at September 30, 2024 was 44% of gross leased merchandise and receivables, which was consistent with the prior year.
    • The average monthly net charge-off (“NCO”) rate for combined leased merchandise and finance receivable products was 5.8% for the third quarter of 2024 and 5.2% for the year-to-date period. While slightly above the prior year, charge-offs remain within the range of forecast expectations.
    • Operating expenses were flat compared to the prior-year quarter and the year-to-date period, which was reflective of continued realization of operating synergies.

    Cash Flow and Liquidity

    • Each of the Company’s business segments generated significant operating cash flows during the twelve month period ended September 30, 2024. Consolidated operating cash flows for the twelve month period ended September 30, 2024 totaled $441 million and adjusted free cash flows (a non-GAAP measure) were $217 million.
    • The operating cash flows helped fund significant growth in earning assets and continued investments in the store platform over the past twelve months with a nominal increase in net debt:
      • A total of 36 pawn stores were acquired for a combined purchase price of $82 million.
      • 64 new, or de novo, pawn stores were added with a combined investment of $20 million in fixed assets and working capital.
      • Investments in real estate totaled $78 million as the Company purchased the underlying real estate at 63 of its existing pawn stores, bringing the number of owned properties to over 380 locations.
    • In August 2024, the Company amended its U.S. revolving commercial bank credit facility to increase the total lender commitment from $640 million to $700 million with two new banks added to the commercial bank lending group. The term of the facility was extended through August 8, 2029. In addition, the permitted consolidated leverage ratio was increased to 3.25 times adjusted EBITDA for the full term of the agreement, while the other financial covenants remain substantially unchanged.
    • Over $1.5 billion of the Company’s long-term financing remains fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032.
    • Based on trailing twelve month results, the net debt to adjusted EBITDA ratio was 2.96x at September 30, 2024.

    Shareholder Returns

    • The Board of Directors declared a $0.38 per share fourth quarter cash dividend, which will be paid on November 27, 2024 to stockholders of record as of November 15, 2024. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
    • Year-to-date, the Company has repurchased $85 million of common stock. The Company has $115 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
    • The Company generated a 12% return on equity and a 6% return on assets for the twelve months ended September 30, 2024. Using adjusted net income for the twelve months ended September 30, 2024, the adjusted return on equity was 15% while the adjusted return on assets was 7%.

    2024 Outlook

    The outlook for the remainder of 2024 continues to be highly positive, with expected year-over-year growth in consolidated revenue and earnings driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the fourth quarter include the following:

    Pawn Operations:

    • Pawn operations are expected to remain the primary earnings driver in 2024 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
    • The company is targeting the addition of approximately 90 total pawn locations for 2024 through a combination of new store openings and acquisitions.

    U.S. Pawn

    • Pawn receivables were up 12% at September 30, 2024 compared to a year ago, with October balances to date up similarly. Resulting pawn fees are expected to increase in the range of 10% to 12%.
    • Retail sales growth is expected to remain in-line with the inventory growth of 10% at the most recent quarter end while retail margins are projected to remain consistent with the year-to-date results.

    Latin America Pawn

    • Latin America results in the fourth quarter are expected to be negatively impacted by the lower exchange rate for the Mexican peso which has recently been in a range of 19 to 20 pesos per U.S. dollar.
    • Pawn loan growth to-date in October is up approximately 8% on a constant currency basis, although down 2% on a U.S. dollar basis as compared to the prior year assuming the current exchange rate. A similar result is projected for constant currency fourth quarter pawn fees.
    • Retail sales in Latin America are also expected to increase in-line with inventory growth of 9% on a constant currency basis and are expected to be roughly flat to the prior year on a U.S. dollar basis, assuming the current exchange rate, with consistent retail margins.

    Retail POS Payment Solutions (AFF) Operations:

    • While weakness in the macro furniture retail environment continues to negatively impact performance from many of its merchant retail partners in the furniture retail vertical, year-over-year growth in gross transaction volumes is still projected for the full year and fourth quarter of 2024, driven by increasing active merchant doors and further expansion of non-furniture verticals. Resulting full year gross revenues for 2024 are expected to remain at or above the prior-year level. AFF now expects furniture to account for less than 40% of 2024 originations compared to almost 50% in 2023.
    • The origination and revenue outlook takes into consideration the previously announced bankruptcy filing of Conn’s Home Plus which now assumes minimal originations from November 2024 forward from this merchant relationship.
    • Anticipated provision rates (combined provision for lease and loan losses as a percentage of the total gross transaction volume originated) are expected to range between 25% and 28% in the fourth quarter of the year.

    Interest Expense, Tax Rates and Currency:

    • Interest expense for the fourth quarter is expected to be consistent with the prior year.
    • The full year 2024 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
    • Each full point change in the exchange rate of the Mexican peso represents an annual earnings impact of approximately $0.10 per share.

    Additional Commentary and Analysis   

    Mr. Wessel provided additional insights on the Company’s third quarter results and outlook for the remainder of 2024, “Our results continue to demonstrate strong fundamental product demand trends which we expect to drive future revenue and earnings growth.

    “The U.S. pawn segment again saw continued record levels of demand for pawn loans and record per store loan balances. The 10% growth in same-store pawn receivables is especially strong given that the comparative prior-year comp was 11%. On a stacked, two-year basis, same-store pawn loans are up 21% compared to the third quarter of 2022, illustrating tremendous, continued momentum in the business. Demand trends in October remain strong and we believe lending volumes should continue to also benefit from increased gold prices while our inventories are well positioned for the holiday sales season.

    “In Latin America, currency adjusted pawn receivables and pawn fees continued to show impressive growth in the third quarter, with further acceleration to date in October, while third quarter retail sales grew even faster. While the volatility of the Mexican peso slightly impacted third quarter earnings results by approximately $0.04 per share, there is minimal impact on cash flows as we continue to reinvest a large portion of our cash flows in Latin America. We believe in the long term opportunity for Latin America, driven by near-shore manufacturing expansion and the use of pawn loans being an integral part of the economy for our customer base.

    “Unit growth in both pawn segments remains exceptional. We have now added 83 stores this year and a total of 240 stores since the beginning of 2023. Looking ahead, we continue to see and evaluate expansion opportunities across markets in both the U.S. and Latin America.

    “AFF’s gross transaction volumes in the third quarter improved both sequentially and year-over-year (even when excluding Conn’s Home Plus third quarter closeout volume) with significant contributions from both new doors and expanding non-furniture verticals driven largely by robust productivity from our field sales channel. Excluding furniture, third quarter origination volume increased approximately 35%. This growth has led to a further decrease in large merchant concentration risk, with the largest merchant partner now representing approximately 12% of current total gross transaction volume. Additionally, combined lease and loan losses remain well within our target metrics while the combined reserve remains consistent at over 40% of the total portfolio.

    “All of FirstCash’s business segments continue to generate strong cash flows while its balance sheet remains highly liquid. Over 60% of pawn loans are collateralized with jewelry, which is primarily gold and very liquid, while almost 50% of retail inventories are comprised of jewelry that typically has the highest margins. Our balance sheet maintains favorable unsecured financing featuring long-dated maturities at attractive rates. Accordingly, we believe that we are well positioned to drive continued shareholder value through organic store growth, strategic acquisitions, dividends and share repurchases,” concluded Mr. Wessel.

    About FirstCash

    FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

    FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

    Forward-Looking Information     

    This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2024. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

    While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and higher gas prices, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail POS payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED STATEMENTS OF INCOME
    (unaudited, in thousands)
     
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024   2023   2024   2023
    Revenue:              
    Retail merchandise sales $ 363,141     $ 335,081     $ 1,093,425     $ 983,860  
    Pawn loan fees   186,561       174,560       547,142       480,298  
    Leased merchandise income   188,560       189,382       588,801       562,625  
    Interest and fees on finance receivables   61,198       61,413       175,384       174,247  
    Wholesale scrap jewelry sales   37,861       25,865       99,951       98,632  
    Total revenue   837,321       786,301       2,504,703       2,299,662  
                   
    Cost of revenue:              
    Cost of retail merchandise sold   218,178       199,719       659,854       590,991  
    Depreciation of leased merchandise   104,928       103,698       335,369       307,824  
    Provision for lease losses   39,171       39,736       129,834       141,674  
    Provision for loan losses   40,557       33,096       102,091       90,571  
    Cost of wholesale scrap jewelry sold   29,880       21,405       81,711       79,012  
    Total cost of revenue   432,714       397,654       1,308,859       1,210,072  
                   
    Net revenue   404,607       388,647       1,195,844       1,089,590  
                   
    Expenses and other income:              
    Operating expenses   224,926       211,524       674,431       615,366  
    Administrative expenses   40,930       45,056       129,563       124,428  
    Depreciation and amortization   25,933       27,365       78,507       81,526  
    Interest expense   27,424       24,689       78,029       66,657  
    Interest income   (403 )     (328 )     (1,407 )     (1,253 )
    Loss (gain) on foreign exchange   882       (286 )     2,133       (1,905 )
    Merger and acquisition expenses   225       3,387       2,186       3,670  
    Other expenses (income), net   (490 )     (384 )     (841 )     (260 )
    Total expenses and other income   319,427       311,023       962,601       888,229  
                   
    Income before income taxes   85,180       77,624       233,243       201,361  
                   
    Provision for income taxes   20,353       20,480       57,975       51,649  
                   
    Net income $ 64,827     $ 57,144     $ 175,268     $ 149,712  
    FIRSTCASH HOLDINGS, INC.
    CONSOLIDATED BALANCE SHEETS
    (unaudited, in thousands)
     
      September 30,   December 31,
      2024   2023   2023
    ASSETS          
    Cash and cash equivalents $ 106,320     $ 86,547     $ 127,018  
    Accounts receivable, net   74,378       72,336       71,922  
    Pawn loans   517,877       483,785       471,846  
    Finance receivables, net   123,751       113,307       113,901  
    Inventories   334,394       314,382       312,089  
    Leased merchandise, net   137,769       143,169       171,191  
    Prepaid expenses and other current assets   34,861       21,114       38,634  
    Total current assets   1,329,350       1,234,640       1,306,601  
               
    Property and equipment, net   689,075       604,673       632,724  
    Operating lease right of use asset   329,228       312,097       328,458  
    Goodwill   1,788,795       1,713,354       1,727,652  
    Intangible assets, net   241,389       291,690       277,724  
    Other assets   10,339       10,057       10,242  
    Deferred tax assets, net   4,671       8,052       6,514  
    Total assets $ 4,392,847     $ 4,174,563     $ 4,289,915  
               
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Accounts payable and accrued liabilities $ 133,792     $ 146,873     $ 163,050  
    Customer deposits and prepayments   78,083       71,752       70,580  
    Lease liability, current   96,598       98,745       101,962  
    Total current liabilities   308,473       317,370       335,592  
               
    Revolving unsecured credit facilities   200,000       560,229       568,000  
    Senior unsecured notes   1,530,604       1,037,151       1,037,647  
    Deferred tax liabilities, net   127,425       139,713       136,773  
    Lease liability, non-current   227,151       202,516       215,485  
    Total liabilities   2,393,653       2,256,979       2,293,497  
               
    Stockholders’ equity:          
    Common stock   575       573       573  
    Additional paid-in capital   1,764,351       1,737,497       1,741,046  
    Retained earnings   1,344,542       1,164,228       1,218,029  
    Accumulated other comprehensive loss   (114,807 )     (64,521 )     (43,037 )
    Common stock held in treasury, at cost   (995,467 )     (920,193 )     (920,193 )
    Total stockholders’ equity   1,999,194       1,917,584       1,996,418  
    Total liabilities and stockholders’ equity $ 4,392,847     $ 4,174,563     $ 4,289,915  
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS
    (UNAUDITED)
     
    U.S. Pawn Operating Results and Margins (dollars in thousands)
     
      Three Months Ended        
      September 30,    
      2024   2023   Increase
    Revenue:                  
    Retail merchandise sales $ 235,037     $ 203,769       15 %  
    Pawn loan fees   128,393       114,022       13 %  
    Wholesale scrap jewelry sales   26,685       17,140       56 %  
    Total revenue   390,115       334,931       16 %  
                       
    Cost of revenue:                  
    Cost of retail merchandise sold   134,966       115,670       17 %  
    Cost of wholesale scrap jewelry sold   21,393       14,297       50 %  
    Total cost of revenue   156,359       129,967       20 %  
                       
    Net revenue   233,756       204,964       14 %  
                       
    Segment expenses:                  
    Operating expenses   128,104       113,976       12 %  
    Depreciation and amortization   7,365       6,586       12 %  
    Total segment expenses   135,469       120,562       12 %  
                       
    Segment pre-tax operating income $ 98,287     $ 84,402       16 %  
                       
    Operating metrics:                  
    Retail merchandise sales margin 43 %   43 %        
    Net revenue margin 60 %   61 %        
    Segment pre-tax operating margin 25 %   25 %        
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,    
      2024   2023   Increase
    Revenue:                  
    Retail merchandise sales $ 702,120     $ 610,493       15 %  
    Pawn loan fees   371,699       315,679       18 %  
    Wholesale scrap jewelry sales   70,722       61,108       16 %  
    Total revenue   1,144,541       987,280       16 %  
                       
    Cost of revenue:                  
    Cost of retail merchandise sold   407,329       349,138       17 %  
    Cost of wholesale scrap jewelry sold   57,928       49,604       17 %  
    Total cost of revenue   465,257       398,742       17 %  
                       
    Net revenue   679,284       588,538       15 %  
                       
    Segment expenses:                  
    Operating expenses   372,191       331,916       12 %  
    Depreciation and amortization   21,609       18,786       15 %  
    Total segment expenses   393,800       350,702       12 %  
                       
    Segment pre-tax operating income $ 285,484     $ 237,836       20 %  
                       
    Operating metrics:                  
    Retail merchandise sales margin 42 %   43 %        
    Net revenue margin 59 %   60 %        
    Segment pre-tax operating margin 25 %   24 %        
    FIRSTCASH HOLDINGS, INC.
    U.S. PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
      As of September 30,    
      2024   2023   Increase
    Earning assets:                  
    Pawn loans $ 380,962     $ 341,123       12 %  
    Inventories   238,668       217,406       10 %  
      $ 619,630     $ 558,529       11 %  
                       
    Average outstanding pawn loan amount (in ones) $ 264     $ 245       8 %  
                       
    Composition of pawn collateral:                  
    General merchandise 30 %   31 %        
    Jewelry 70 %   69 %        
      100 %   100 %        
                       
    Composition of inventories:                  
    General merchandise 43 %   45 %        
    Jewelry 57 %   55 %        
      100 %   100 %        
                       
    Percentage of inventory aged greater than one year 2 %   1 %        
                       
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 2.8 times   2.8 times        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS
    (UNAUDITED)
     
    Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.
     
    Latin America Pawn Operating Results and Margins (dollars in thousands)
     
                          Constant Currency Basis
                          Three Months        
                    Ended        
        Three Months Ended           September 30,   Increase /
        September 30,   Increase /   2024   (Decrease)
        2024     2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                              
    Retail merchandise sales   $ 129,081       $ 132,784       (3 )%     $ 142,147       7 %  
    Pawn loan fees     58,168         60,538       (4 )%       64,130       6 %  
    Wholesale scrap jewelry sales     11,176         8,725       28 %       11,176       28 %  
    Total revenue     198,425         202,047       (2 )%       217,453       8 %  
                                   
    Cost of revenue:                              
    Cost of retail merchandise sold     83,729         84,816       (1 )%       92,131       9 %  
    Cost of wholesale scrap jewelry sold     8,487         7,108       19 %       9,378       32 %  
    Total cost of revenue     92,216         91,924       %       101,509       10 %  
                                   
    Net revenue     106,209         110,123       (4 )%       115,944       5 %  
                                   
    Segment expenses:                              
    Operating expenses     63,062         63,907       (1 )%       69,199       8 %  
    Depreciation and amortization     4,676         5,236       (11 )%       5,117       (2 )%  
    Total segment expenses     67,738         69,143       (2 )%       74,316       7 %  
                                     
    Segment pre-tax operating income   $ 38,471       $ 40,980       (6 )%     $ 41,628       2 %  
                                   
    Operating metrics:                              
    Retail merchandise sales margin 35 %   36 %         35 %        
    Net revenue margin 54 %   55 %         53 %        
    Segment pre-tax operating margin 19 %   20 %         19 %        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
                          Constant Currency Basis
                          Nine Months        
                    Ended        
        Nine Months Ended           September 30,   Increase /
        September 30,   Increase /    2024   (Decrease)
         2024      2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Revenue:                              
    Retail merchandise sales   $ 394,375       $ 378,302       4 %     $ 391,606       4 %  
    Pawn loan fees     175,443         164,619       7 %       174,228       6 %  
    Wholesale scrap jewelry sales     29,229         37,524       (22 )%       29,229       (22 )%  
    Total revenue     599,047         580,445       3 %       595,063       3 %  
                                   
    Cost of revenue:                              
    Cost of retail merchandise sold     254,188         244,439       4 %       252,377       3 %  
    Cost of wholesale scrap jewelry sold     23,783         29,408       (19 )%       23,627       (20 )%  
    Total cost of revenue     277,971         273,847       2 %       276,004       1 %  
                                   
    Net revenue     321,076         306,598       5 %       319,059       4 %  
                                   
    Segment expenses:                              
    Operating expenses     198,389         179,170       11 %       196,986       10 %  
    Depreciation and amortization     15,199         15,884       (4 )%       15,072       (5 )%  
    Total segment expenses     213,588         195,054       10 %       212,058       9 %  
                                   
    Segment pre-tax operating income   $ 107,488       $ 111,544       (4 )%     $ 107,001       (4 )%  
                                   
    Operating metrics:                              
    Retail merchandise sales margin 36 %   35 %         36 %        
    Net revenue margin 54 %   53 %         54 %        
    Segment pre-tax operating margin 18 %   19 %         18 %        
    FIRSTCASH HOLDINGS, INC.
    LATIN AMERICA PAWN SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)
     
                          Constant Currency Basis
                          As of        
                          September 30,    
      As of September 30,       2024   Increase
      2024   2023   (Decrease)   (Non-GAAP)   (Non-GAAP)
    Earning assets:                              
    Pawn loans $ 136,915     $ 142,662       (4 )%   $ 151,486     6 %  
    Inventories   95,726       96,976       (1 )%     105,792     9 %  
      $ 232,641     $ 239,638       (3 )%   $ 257,278     7 %  
                                   
    Average outstanding pawn loan amount (in ones) $ 85     $ 89       (4 )%   $ 94     6 %  
                                   
    Composition of pawn collateral:                              
    General merchandise 62 %   66 %                    
    Jewelry 38 %   34 %                    
      100 %   100 %                    
                                   
    Composition of inventories:                              
    General merchandise 70 %   68 %                    
    Jewelry 30 %   32 %                    
      100 %   100 %                    
                                   
    Percentage of inventory aged greater than one year 1 %   1 %                    
                                   
    Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) 4.2 times   4.3 times                    
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS
    (UNAUDITED)
     
    Retail POS Payment Solutions Operating Results (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Revenue:              
    Leased merchandise income $ 188,560   $ 189,382     %  
    Interest and fees on finance receivables   61,198     61,413     %  
    Total revenue   249,758     250,795     %  
                   
    Cost of revenue:              
    Depreciation of leased merchandise   105,308     104,198     1 %  
    Provision for lease losses   39,268     39,640     (1 )%  
    Provision for loan losses   40,557     33,096     23 %  
    Total cost of revenue   185,133     176,934     5 %  
                   
    Net revenue   64,625     73,861     (13 )%  
                   
    Segment expenses:              
    Operating expenses   33,760     33,641     %  
    Depreciation and amortization   679     771     (12 )%  
    Total segment expenses   34,439     34,412     %  
                   
    Segment pre-tax operating income $ 30,186   $ 39,449     (23 )%  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Revenue:              
    Leased merchandise income $ 588,801   $ 562,625     5 %  
    Interest and fees on finance receivables   175,384     174,247     1 %  
    Total revenue   764,185     736,872     4 %  
                   
    Cost of revenue:              
    Depreciation of leased merchandise   336,649     309,432     9 %  
    Provision for lease losses   130,272     141,854     (8 )%  
    Provision for loan losses   102,091     90,571     13 %  
    Total cost of revenue   569,012     541,857     5 %  
                   
    Net revenue   195,173     195,015     %  
                   
    Segment expenses:              
    Operating expenses   103,851     104,280     %  
    Depreciation and amortization   2,078     2,258     (8 )%  
    Total segment expenses   105,929     106,538     (1 )%  
                   
    Segment pre-tax operating income $ 89,244   $ 88,477     1 %  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise $ 143,146   $ 147,513     (3 )%  
    Finance receivables   142,910     103,183     39 %  
    Total gross transaction volume $ 286,056   $ 250,696     14 %  
                   
                   
      Nine Months Ended        
      September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise $ 444,045   $ 452,792     (2 )%  
    Finance receivables   350,332     303,485     15 %  
    Total gross transaction volume $ 794,377   $ 756,277     5 %  
    Retail POS Payment Solutions Earning Assets (dollars in thousands)
     
      As of September 30,   Increase /
      2024   2023   (Decrease)
    Leased merchandise, net:              
    Leased merchandise, before allowance for lease losses $ 231,796     $ 250,298       (7 )%  
    Less allowance for lease losses   (93,823 )     (105,472 )     (11 )%  
    Leased merchandise, net $ 137,973     $ 144,826       (5 )%  
                   
    Finance receivables, net:              
    Finance receivables, before allowance for loan losses $ 232,948     $ 209,991       11 %  
    Less allowance for loan losses   (109,197 )     (96,684 )     13 %  
    Finance receivables, net $ 123,751     $ 113,307       9 %  
    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
    Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)
     
      Three Months Ended        
      September 30,   Increase /
        2024     2023   (Decrease)
    Allowance for lease losses:                  
    Balance at beginning of period   $ 103,301       $ 110,964       (7 )%  
    Provision for lease losses     39,268         39,640       (1 )%  
    Charge-offs     (50,394 )       (46,794 )     8 %  
    Recoveries     1,648         1,662       (1 )%  
    Balance at end of period   $ 93,823       $ 105,472       (11 )%  
                       
    Leased merchandise portfolio metrics:                  
    Provision rate(1) 27 %   27 %        
    Average monthly net charge-off rate(2) 6.8 %   5.9 %        
    Delinquency rate(3) 23.6 %   23.2 %        
                       
    Allowance for loan losses:                  
    Balance at beginning of period   $ 99,961       $ 93,054       7 %  
    Provision for loan losses     40,557         33,096       23 %  
    Charge-offs     (32,969 )       (30,890 )     7 %  
    Recoveries     1,648         1,424       16 %  
    Balance at end of period   $ 109,197       $ 96,684       13 %  
                       
    Finance receivables portfolio metrics:                  
    Provision rate(1) 28 %   32 %        
    Average monthly net charge-off rate(2) 4.8 %   4.7 %        
    Delinquency rate(3) 19.4 %   21.9 %        

    (1)   Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
    (2)   Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
    (3)   Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

    FIRSTCASH HOLDINGS, INC.
    RETAIL POS PAYMENT SOLUTIONS SEGMENT RESULTS (CONTINUED)
    (UNAUDITED)
     
      Nine Months Ended        
      September 30,   Increase /
        2024     2023   (Decrease)
    Allowance for lease losses:                  
    Balance at beginning of period   $ 95,752       $ 79,576       20 %  
    Provision for lease losses     130,272         141,854       (8 )%  
    Charge-offs     (137,516 )       (120,966 )     14 %  
    Recoveries     5,315         5,008       6 %  
    Balance at end of period   $ 93,823       $ 105,472       (11 )%  
                       
    Leased merchandise portfolio metrics:                  
    Provision rate(1) 29 %   31 %        
    Average monthly net charge-off rate(2) 5.9 %   5.3 %        
    Delinquency rate(3) 23.6 %   23.2 %        
                       
    Allowance for loan losses:                  
    Balance at beginning of period   $ 96,454       $ 84,833       14 %  
    Provision for loan losses     102,091         90,571       13 %  
    Charge-offs     (95,061 )       (83,281 )     14 %  
    Recoveries     5,713         4,561       25 %  
    Balance at end of period   $ 109,197       $ 96,684       13 %  
                       
    Finance receivables portfolio metrics:                  
    Provision rate(1) 29 %   30 %        
    Average monthly net charge-off rate(2) 4.5 %   4.4 %        
    Delinquency rate(3) 19.4 %   21.9 %        

    (1)   Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.
    (2)   Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.
    (3)   Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).

    FIRSTCASH HOLDINGS, INC.
    PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS
     
    Pawn Operations
     
    As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.
     
    The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:
     
      Three Months Ended September 30, 2024
      U.S.   Latin America   Total
    Total locations, beginning of period 1,201     1,817     3,018  
    New locations opened(1)     15     15  
    Locations acquired 1         1  
    Consolidation of existing pawn locations(2) (1 )   (8 )   (9 )
    Total locations, end of period 1,201     1,824     3,025  
               
               
      Nine Months Ended September 30, 2024
      U.S.   Latin America   Total
    Total locations, beginning of period 1,183     1,814     2,997  
    New locations opened(1) 1     54     55  
    Locations acquired 28         28  
    Consolidation of existing pawn locations(2) (3) (11 )   (44 )   (55 )
    Total locations, end of period 1,201     1,824     3,025  

    (1)   In addition to new store openings, the Company strategically relocated three stores in the U.S. and one store in Latin America during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company strategically relocated nine stores in the U.S and one store in Latin America.
    (2)   Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
    (3)   Includes 10 pawnshops located in Acapulco, Mexico that were severely damaged by a hurricane in the fall of 2023 which the Company elected to consolidate with other stores in this market. The Company expects to replace certain of these locations in this market over time as the city’s infrastructure recovers.

    Retail POS Payment Solutions

    As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES
    (UNAUDITED)
     

    The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

    While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

    The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (i) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (ii) to improve comparability of current periods presented with prior periods.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Adjusted Net Income and Adjusted Diluted Earnings Per Share

    Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

    The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

                      Trailing Twelve
      Three Months Ended   Nine Months Ended Months Ended
      September 30,   September 30, September 30,
      2024
    2023 2024
    2023 2024
    2023
      In Thousands   In Thousands   In Thousands   In Thousands   In Thousands   In Thousands
    Net income, as reported $ 64,827     $ 57,144     $ 175,268     $ 149,712     $ 244,857     $ 229,778  
    Adjustments, net of tax:                      
    Merger and acquisition expenses   171       2,605       1,675       2,818       4,946       4,379  
    Non-cash foreign currency loss (gain) related to lease liability   986       442       2,124       (1,171 )     1,517       (1,856 )
    AFF purchase accounting and other adjustments   9,572       10,880       28,717       32,869       50,189       50,529  
    Gain on revaluation of contingent acquisition consideration                                 (21,952 )
    Other expenses (income), net   (377 )     (296 )     (518 )     (200 )     (1,397 )     (208 )
    Adjusted net income $ 75,179     $ 70,775     $ 207,266     $ 184,028     $ 300,112     $ 260,670  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
                   
      Three Months Ended   Nine Months Ended
      September 30,   September 30,
      2024   2023   2024   2023
      Per Share   Per Share   Per Share   Per Share
    Diluted earnings per share, as reported $ 1.44     $ 1.26     $ 3.88     $ 3.27  
    Adjustments, net of tax:              
    Merger and acquisition expenses   0.01       0.06       0.04       0.06  
    Non-cash foreign currency loss (gain) related to lease liability   0.02       0.01       0.05       (0.03 )
    AFF purchase accounting and other adjustments   0.21       0.24       0.63       0.72  
    Other expenses (income), net   (0.01 )     (0.01 )     (0.02 )      
    Adjusted diluted earnings per share $ 1.67     $ 1.56     $ 4.58     $ 4.02  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

    The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

                Trailing Twelve
        Three Months Ended   Nine Months Ended   Months Ended
        September 30,   September 30,   September 30,
        2024   2023   2024   2023   2024   2023
    Net income   $ 64,827     $ 57,144     $ 175,268     $ 149,712     $ 244,857     $ 229,778  
    Income taxes     20,353       20,480       57,975       51,649       79,874       73,189  
    Depreciation and amortization     25,933       27,365       78,507       81,526       106,142       107,863  
    Interest expense     27,424       24,689       78,029       66,657       104,615       86,616  
    Interest income     (403 )     (328 )     (1,407 )     (1,253 )     (1,623 )     (1,462 )
    EBITDA     138,134       129,350       388,372       348,291       533,865       495,984  
    Adjustments:                                    
    Merger and acquisition expenses     225       3,387       2,186       3,670       6,438       5,697  
    Non-cash foreign currency loss (gain) related to lease liability     1,409       632       3,035       (1,673 )     2,168       (2,652 )
    AFF purchase accounting and other adjustments(1)                             13,968       8,760  
    Gain on revaluation of contingent acquisition consideration                                   (26,760 )
    Other expenses (income), net     (490 )     (384 )     (841 )     (260 )     (1,983 )     (270 )
    Adjusted EBITDA   $ 139,278     $ 132,985     $ 392,752     $ 350,028     $ 554,456     $ 480,759  
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    (1)   The following table details AFF purchase accounting and other adjustments for the trailing twelve months ended September 30, 2024 and 2023 (in thousands):

      Trailing Twelve
      Months Ended
      September 30,
      2024   2023
    Amortization of fair value adjustment on acquired finance receivables included in interest and fees on finance receivables $   $ 7,859
    Amortization of fair value adjustment on acquired leased merchandise included in depreciation of leased merchandise       901
    Other non-recurring costs included in administrative expenses related to a discontinued finance product   13,968    
      $ 13,968   $ 8,760
    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Free Cash Flow and Adjusted Free Cash Flow

    For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

    Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

                        Trailing Twelve
        Three Months Ended   Nine Months Ended   Months Ended
        September 30,   September 30,   September 30,
        2024   2023   2024   2023   2024   2023
    Cash flow from operating activities   $ 113,090     $ 111,368     $ 341,809     $ 317,037     $ 440,914     $ 460,544  
    Cash flow from certain investing activities:                        
    Pawn loans, net(1)     (48,836 )     (59,614 )     (69,723 )     (59,426 )     (45,275 )     (20,536 )
    Finance receivables, net     (48,623 )     (30,869 )     (86,186 )     (87,994 )     (113,634 )     (123,713 )
    Purchases of furniture, fixtures, equipment and improvements     (13,368 )     (18,375 )     (56,032 )     (46,723 )     (69,457 )     (52,679 )
    Free cash flow     2,263       2,510       129,868       122,894       212,548       263,616  
    Merger and acquisition expenses paid, net of tax benefit     171       2,605       1,675       2,818       4,946       4,379  
    Adjusted free cash flow   $ 2,434     $ 5,115     $ 131,543     $ 125,712     $ 217,494     $ 267,995  

    (1)   Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     

    Adjusted Return on Equity and Adjusted Return on Assets

    Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

    Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

      Trailing Twelve
      Months Ended
      September 30, 2024
    Adjusted net income(1) $ 300,112  
         
    Average stockholders’ equity (average of five most recent quarter-end balances) $ 1,987,405  
    Adjusted return on equity (trailing twelve months adjusted net income divided by average equity) 15 %
         
    Average total assets (average of five most recent quarter-end balances) $ 4,285,437  
    Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets) 7 %

    (1)   See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.

    Constant Currency Results

    The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

    The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

    FIRSTCASH HOLDINGS, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
    TO GAAP FINANCIAL MEASURES (CONTINUED)
    (UNAUDITED)
     
    Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso
     
      September 30,   Favorable /
      2024   2023   (Unfavorable)
    Mexican peso / U.S. dollar exchange rate:              
    End-of-period 19.6   17.6     (11 )%  
    Three months ended 18.9   17.1     (11 )%  
    Nine months ended 17.7   17.8     1 %  
                   
    Guatemalan quetzal / U.S. dollar exchange rate:              
    End-of-period 7.7   7.9     3 %  
    Three months ended 7.7   7.9     3 %  
    Nine months ended 7.8   7.8     %  
                   
    Colombian peso / U.S. dollar exchange rate:              
    End-of-period 4,164   4,054     (3 )%  
    Three months ended 4,095   4,048     (1 )%  
    Nine months ended 3,979   4,413     10 %  
                     
    FIRSTCASH HOLDINGS, INC.
    INTERSEGMENT TRANSACTIONS
    (UNAUDITED)
     

    Intersegment transactions relate to the Company offering AFF’s LTO payment solution in its U.S. pawn stores and are eliminated to arrive at consolidated totals. For the three months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $1.0 million and $1.5 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $234.1 million and $202.3 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $0.5 million and $0.8 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $134.4 million and $114.9 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $0.4 million and $0.5 million respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $104.9 million and $103.7 million, respectively.
    • Retail POS payment solutions provision for lease losses includes an increase of $0.1 million and a provision reduction of $0.1 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $39.2 million and $39.7 million, respectively.

    For the nine months ended September 30, 2024 and 2023, these intersegment amounts are as follows:

    • U.S. pawn retail merchandise sales includes $3.1 million and $4.9 million, respectively. Excluding these intersegment sales, consolidated U.S. retail merchandise sales totaled $699.1 million and $605.6 million, respectively.
    • U.S. pawn cost of retail merchandise sold includes $1.7 million and $2.6 million, respectively. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold totaled $405.7 million and $346.6 million, respectively.
    • Retail POS payment solutions depreciation of leased merchandise includes $1.3 million and $1.6 million, respectively. Excluding these intersegment transactions, consolidated depreciation of leased merchandise totaled $335.4 million and $307.8 million, respectively.
    • Retail POS payment solutions provision for lease losses includes $0.4 million and $0.2 million, respectively. Excluding these intersegment transactions, consolidated provision for lease losses totaled $129.8 million and $141.7 million, respectively.

    As of September 30, 2024 and 2023, these intersegment amounts are as follows:

    • Retail POS payment solutions leased merchandise, net includes $0.2 million and $1.7 million, respectively. Excluding these intersegment transactions, consolidated net leased merchandise totaled $137.8 million and $143.2 million, respectively.

    The MIL Network

  • MIL-Evening Report: Grattan on Friday: a possible Trump victory is making the Albanese government cagey about its 2035 climate target

    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra

    If Donald Trump wins the US presidency on November 5, his victory will have profound implications for other countries on many fronts. Not least of them will be climate change policy.

    Perhaps the uncertainty now hanging over US politics was on the mind of Climate Change and Energy Minister Chris Bowen, who shilly-shallied this week over when he’ll announce Australia’s 2035 emissions reduction target under the Paris climate agreement.

    Bowen refused to be pinned down at the Australian Financial Review’s energy and climate summit on whether the target would be public before next year’s election. Neither his office nor that of the prime minister would be more specific later.

    Australia, like other countries, is required under the Paris agreement to put forward its target in February. But, also like other countries, Australia is focused on what’s happening in the US.

    Trump wants to take the US out of the Paris agreement for the second time. The first exit took effect immediately after his 2020 defeat and incoming President Joe Biden was able to reverse it at once. This time, there’d be no such quick turnaround.

    The Biden administration has been strongly committed on climate issues. If the US exited, the Paris agreement would likely be transformed.

    There may be other reasons why Bowen is being cagey about the 2035 target. Climate change and energy will be harder issues for Labor in this election, as it struggles with the realities of the transition, than in the 2022 one.

    In the run-up to that election, a desperate Scott Morrison pulled out all stops to win support within the Coalition to sign up to the 2050 net-zero emissions target.

    Labor was on the front foot, with a policy for a 43% reduction in emissions (on 2005 levels) by 2030, underpinned by a target of 82% renewable electricity by then. The election promise for consumers was a $275 cut in household power bills by 2025.

    Crafting a policy is often easier than implementing it. The journey to a clean energy economy is arduous.

    The $275 promise was quickly seen as unrealisable. The government has had to provide rebates to keep prices in check. The rollout of renewables is complicated by local resistance to some projects, including wind farms and transmission lines. At present, more than 40% of electricity comes from renewables.

    The cost-of-living crisis has increasingly dominated everything. Climate change remains a significant issue with people, but over time it tends to go up and down their scale of concerns, depending on changing circumstances.

    The Ipsos Climate Change Report, done annually, found in 2024 “strong notional support for the energy transition”, but low understanding of what progress had been made.

    Concerns about the negative impacts of the transition on cost of living and energy reliability have increased, particularly in the current high inflation environment. The perceived economic benefits of the transition are less clear, with many unsure about the impact on jobs and the broader economy.

    The emphasis on cost of living is influencing priorities for the energy transition, with Australians wanting to see energy prices and reliability prioritised. There is a growing sentiment that Australia should only take action if other countries are also contributing fairly to climate change efforts.

    Of course a summer of bad bushfires can change people’s priorities suddenly. Barring that, Labor is looking at a 2025 election in which it will be more on the defensive than the offensive on climate and energy issues.

    The opposition has already acted to sharpen the difference with Labor over the medium term targets. Peter Dutton will have no 2035 target before the election, and has questioned the 2030 target to which Australia is signed up, although he says a Coalition government would not leave the Paris agreement. He is also running hard on his controversial policy for nuclear energy.

    While Bowen is not clarifying whether he’ll announce the government’s target ahead of the election, it would be awkward for Australia not to meet the February deadline.

    There would not be a penalty, but it would be a bad look, especially given we are vying with Turkey to host, together with Pacific countries, COP31 in 2026. One unknown, incidentally, is whether a Coalition government would continue this bid, which the opposition has describes as a “vanity project”.

    If the government does announce the 2035 target before the election, the big question is how ambitious it will make it.

    Bowen will receive advice on this from the Climate Change Authority, to which the government has appointed, as head, former New South Wales Liberal Treasurer Matt Kean.

    In an earlier discussion paper, the authority said the evidence suggests

    A 2035 target in the range of 65-75% […] could be achievable and sustainable if additional action is taken by governments, business, investors and households […]. However, attempting to go much faster could risk significant levels of economic and social disruption and put progress at risk.

    A bold target would make the government more vulnerable, just when Labor would want the attention on the Coalition’s problematic nuclear policy. On the other hand, if the target were modest, that would be exploited by the Greens.

    Next month, Bowen will attend COP29 in Azerbaijan, where the central issue will be a financial goal, replacing the 2015 goal, for developed and major economies to help fund developing countries’ emission reduction efforts. Bowen, with Egyptian Environment Minister Yasmine Fouad, is leading the consultations on this, and so has a significant role at the conference.

    At the COP meeting, Bowen will get a better idea of where other countries are on their expected 2035 targets. He indicated this week he has already started taking soundings. “Obviously […] of course you think about international context.”

    By the time of COP, which runs November 11-22, America will have chosen its next president. The COP meeting will either be business-as-usual, looking to an incoming Kamala Harris presidency, or trying to anticipate the implications of a Trump administration that could be a major disruptor of international climate policy.

    Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Grattan on Friday: a possible Trump victory is making the Albanese government cagey about its 2035 climate target – https://theconversation.com/grattan-on-friday-a-possible-trump-victory-is-making-the-albanese-government-cagey-about-its-2035-climate-target-242107

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Asia-Pac: Auction for Victoria Park Lunar New Year Fair stalls ends

    Source: Hong Kong Government special administrative region

         â€‹The open auction for stalls at the 2025 Victoria Park Lunar New Year (LNY) Fair concluded today (October 24). The total revenue was $6,728,088.
     
         A spokesman for the Food and Environmental Hygiene Department said that a total of 383 stalls at the Fair, including 158 for regular size dry goods, 46 for large size dry goods, 175 for wet goods and four for fast food, were let out during the three-day open auction.
     
         To summarise the results of the auction held during the past two days (October 23 and 24), the successful bids for the regular size dry goods stalls ranged from $8,540 to $36,000, which averaged out to $11,700. The highest bid of $36,000 was about 4.2 times the opening price of $8,540. The auction of regular dry goods stalls fetched a total of $1,843,850. For the large size dry goods stalls, the successful bids ranged from $12,810 to $41,000, which averaged out to $15,783. The highest bid of $41,000 was about 3.2 times the opening price of $12,810. The auction of large size dry goods stalls fetched a total of $726,040.
     
         The three auction days for the Victoria Park LNY Fair stalls attracted about 1 300 participants in total.
     
         The auction for stalls of the Tat Tung Road Garden LNY Fair in Tung Chung will be held tomorrow (October 25) at Assembly Hall, 2/F, Lai Chi Kok Government Offices, 19 Lai Wan Road, Lai Chi Kok, Kowloon. The auction session is scheduled from 9.30am until completion of the auction.
     
         The auctions for stalls of the LNY fairs in Cheung Sha Wan Playground and Fa Hui Park in Sham Shui Po, Tsz Wan Shan Estate Central Playground in Wong Tai Sin and Kwun Tong Recreation Ground in Kwun Tong will be held at the above-mentioned venue from October 28 to 31. The auction sessions are scheduled from 9am or 9.30am to 12.30pm (AM session) and 2pm until completion of the auction (PM session).
     
         The spokesman reminded the successful bidders to comply with all stipulations and provisions as set out in the licence agreement. Otherwise, the department is entitled to terminate the agreement and the licensee shall immediately vacate the stall.

    MIL OSI Asia Pacific News

  • MIL-OSI: Nasdaq Reports Third Quarter 2024 Results; Fourth Consecutive Quarter of Double-Digit Solutions Revenue Growth

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the third quarter of 2024.

    • Third quarter 2024 net revenue1 was $1.1 billion, or $1.2 billion on a non-GAAP basis2, an increase of 22% over the third quarter of 2023, up 10% on a pro forma3 basis. This included Solutions4 revenue increasing 26%, or 10% on a pro forma basis.
    • Annualized Recurring Revenue (ARR)5 of $2.7 billion increased 31% over the third quarter of 2023, up 8% on a pro forma basis.
    • Financial Technology revenue of $371 million increased 56% over the third quarter of 2023, up 10% on a pro forma basis.
    • Index revenue of $182 million increased 26%, with $62 billion of net inflows over the trailing twelve months and $14 billion in the third quarter.
    • GAAP diluted earnings per share decreased 11% in the third quarter of 2024. Non-GAAP diluted earnings per share increased 5% in the third quarter of 2024 and increased 20% organically.
    • In the third quarter of 2024, the company returned $138 million to shareholders through dividends and $88 million through repurchases of common stock. The company also repaid net $50 million of commercial paper in the third quarter of 2024.

    Third Quarter 2024 Highlights

    (US$ millions, except per share) 3Q24 Change %
    (YoY)
    Organic change % (YoY) Pro forma change % (YoY)
    GAAP Solutions Revenue $872 26%    
    Non-GAAP Solutions Revenue $906 31% 9% 10%
    Market Services Net Revenue $266 13% 13%  
    GAAP Net Revenue* $1,146 22%    
    Non-GAAP Net Revenue* $1,180 26% 10% 10%
    GAAP Operating Income $448 4%    
    Non-GAAP Operating Income $637 30% 12% 14%
    ARR $2,736 31% 7% 8%
    GAAP Diluted EPS $0.53 (11)%    
    Non-GAAP Diluted EPS $0.74 5% 20%  

    Note: The period over period percentages are calculated based on exact dollars, and therefore may not agree to a recalculation based on rounded numbers shown in the table above. Pro forma results are not calculated in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Refer to the footnotes below for further discussion.

    *Net revenues includes $8 million of Other Revenues, which reflect revenues associated with the European power trading and clearing business.

    Adena Friedman, Chair and CEO said, “Nasdaq delivered its fourth consecutive quarter of double-digit Solutions growth with strong overall quarterly performance.

    As we approach the one-year anniversary of the Adenza acquisition, I am proud of our progress to date and excited about driving even greater value for our clients and shareholders.

    The integration continues seamlessly. Through our One Nasdaq strategy we are deepening our partnerships with clients across the financial system and unlocking opportunities for sustained and scalable growth.”

    Sarah Youngwood, Executive Vice President and CFO said, “Nasdaq’s performance continues to reflect the quality and diversity of our platforms, driving strong growth across the business with particular strength in Index and Financial Technology.

    We are continuing to deliver ahead on deleveraging and synergies and are benefiting from significant operating leverage.

    Looking ahead, we remain well positioned to execute on our next phase of sustainable growth.”

    FINANCIAL REVIEW

    • Third quarter 2024 net revenue was $1.1 billion, reflecting 22% growth versus the prior year period while non-GAAP net revenue was $1.2 billion. Revenue growth included a $146 million benefit related to the acquisition of Adenza. Net revenue grew 10% on a pro forma basis.
    • Solutions revenue was $872 million in the third quarter of 2024, up 26% versus the prior year period, or 10% growth on a pro forma basis, reflecting strong growth from Index and Financial Technology.
    • ARR grew 31% year over year, or 8% on a pro forma basis, in the third quarter of 2024 with 14% pro forma ARR growth for Financial Technology and 2% ARR growth for Capital Access Platforms.
    • Market Services net revenue was $266 million in the third quarter of 2024, up 13% versus the prior year period. The increase was primarily driven by a $15 million increase in U.S. equity derivatives and an $11 million increase in U.S. cash equities.
    • Third quarter 2024 GAAP operating expenses were $698 million, an increase of 37% versus the prior year period. The increase for the third quarter was primarily due to the acquisition of Adenza, which resulted in an additional $87 million in amortization expense of acquired intangible assets, and $61 million of other AxiomSL and Calypso operating expenses, as well as organic growth driven by increased investments in technology and our people to drive innovation and long-term growth.
    • Third quarter 2024 non-GAAP operating expenses were $543 million, reflecting 21% growth versus the prior year period, or 5% growth on a pro forma basis. The increase for the third quarter was primarily due to the inclusion of $61 million of AxiomSL and Calypso operating expenses. The pro forma increase reflects growth driven by increased investments in technology and our people to drive innovation and long-term growth, partially offset by the benefit of synergies.
    • Third quarter 2024 cash flow from operations was $244 million, enabling the company to continue to make meaningful progress on its deleveraging plan. In the third quarter, the company returned $138 million to shareholders through dividends and $88 million through repurchases of our common stock. The company also repaid net $50 million of commercial paper in the third quarter of 2024. As of September 30, 2024, there was $1.7 billion remaining under the board authorized share repurchase program.

    2024 EXPENSE AND TAX GUIDANCE UPDATE6

    • The company is updating its 2024 non-GAAP operating expense guidance to a range of $2,150 million to $2,180 million, and is updating its 2024 non-GAAP tax rate guidance to be in the range of 23.5% to 24.5%.

    STRATEGIC AND BUSINESS UPDATES

    • Financial Technology delivered healthy revenue growth in the third quarter. Division revenue increased 10% on a pro forma basis, reflective of the mission-critical nature of the division’s solutions suite. Financial Technology pro forma ARR growth was 14% in the third quarter, with 39 new customers, 110 upsells, and 2 cross-sells. Third quarter highlights include:
      • Nasdaq leapt to 5th place in Chartis’ annual RiskTech100® global ranking. This ranking is widely regarded as the most comprehensive independent study of the world’s major players in risk and compliance technology. The significant jump in ranking reflects the combined power of Nasdaq and Adenza’s technology offerings with Nasdaq and Adenza previously ranking #18 and #10, respectively. Nasdaq Verafin and AxiomSL won Chartis industry awards recognizing Nasdaq’s leadership in financial crime management and in regulatory reporting. The study also highlighted the value of Nasdaq’s governance and sustainability solutions.
      • Financial Crime Management Technology had ARR growth of 24% with 114% net revenue retention and launched new AI product innovations. Financial Crime Management Technology signed 28 new SMB clients, in addition to the previously announced Tier 1 win in July. Nasdaq Verafin extended its track record of product innovation success with its AI Entity Research Copilot now deployed to more than 2,000 U.S. institutions. In the third quarter Nasdaq Verafin announced new enhancements to its Targeted Typology Analytics, an artificial intelligence (AI) based suite of detection capabilities targeting terrorist financing and drug trafficking activity.
      • AxiomSL and Calypso achieved 15% combined pro forma ARR growth. AxiomSL and Calypso delivered a combined 47 upsells and 4 new clients, with 17% of new bookings in the quarter cloud-based. Combined gross revenue retention7 was 97% and net revenue retention8 was 111%. Excluding the impact of a significant bankruptcy first noted in the fourth quarter of 2023, pro forma ARR growth was 16%, gross revenue retention was 98%, and net revenue retention was 112%.
      • Market Technology delivered 14% ARR growth as it continues to capture opportunities associated with the market modernization megatrend. Market Technology was driven by 13 upsells, 1 new client, and 1 cross-sell in the third quarter. ARR growth also benefited from the conversion of a previously mentioned large client delivery.
    • U.S. equity derivatives achieved record quarterly net revenue. In the third quarter of 2024, Nasdaq achieved a record quarter of U.S. equity derivatives net revenue of $107 million, with multi-listed U.S. options market share once again surpassing 30% in the quarter and 19% growth in U.S. index options volume.
    • Index delivered another quarter of outstanding performance and advanced its growth strategy across product innovation, globalization, and institutional client expansion. The Index business had $62 billion in net inflows over the trailing 12 months, with $14 billion in the third quarter. The business achieved another record in Index ETP AUM, averaging $575 billion in the third quarter and reaching $600 billion at quarter-end. Index derivatives trading volumes grew 24% year-over-year, also contributing to revenue growth. Nasdaq launched 35 new products with our partners in the quarter, 20 of which were international. The launches included 8 options overlays and 7 institutional insurance annuity products. Additionally, Nasdaq recently received 2024 Best Index Provider from Structured Retail Products, a global market intelligence provider, highlighting the business’ innovation and success as a strategic partner to our clients.
    • Nasdaq strengthened its listings leadership in the U.S. in the third quarter. Nasdaq listed 33 U.S. operating company IPOs that raised more than $6 billion in proceeds, reflecting an 85% win rate among eligible operating companies in the quarter. These listings contributed to a 75% win rate year-to-date through the third quarter for eligible operating companies comprising of 5 of the top 10 IPOs, including Lineage, the largest offering so far this year. Nasdaq also celebrated its 500th switch to our U.S. exchange in the quarter.
    • Nasdaq celebrated 25 Years of MarketSite in Times Square. MarketSite has stood as a physical embodiment of the Nasdaq brand since its debut and reflects Nasdaq’s culture of driving innovation and delivering valuable client solutions. MarketSite is a hub for Nasdaq’s clients and partners and an integral part of the global finance landscape.
    • Nasdaq continued its progress on its 2024 strategic priorities – Integrate, Innovate, Accelerate – positioning the company to capitalize on opportunities for sustainable, scalable, and resilient growth.
      • Integrate – Since the acquisition of Adenza nearly a year-ago, Nasdaq has actioned more than 80% of its net expense synergy target and continues to delever ahead of plan.
      • Innovate – Nasdaq reached new milestones in deploying AI tools and products including the launch of an internal Generative AI platform with custom-built efficiency tools and completed the rollout of AI copilot tools to all of its developers. Calypso also announced an AI-based solution for X-Value Adjustments (XVA) with up to 100 times faster processing speeds that improves the efficiency of risk calculations for banks, insurers, and other financial institutions. Beyond Nasdaq’s AI innovations, Market Services migrated Nasdaq International Securities Exchange to its next-generation derivatives platform, Fusion. Four of Nasdaq’s U.S. markets and one European equity derivatives market are operating on this platform which provides enhanced performance, including lower latency, higher throughput, and increased productivity.
      • Accelerate – We continue to make progress on our One Nasdaq strategy driving two cross-sells across the Financial Technology division in the quarter. The percentage of cross-sell opportunities in the division’s pipeline is over 10% and Nasdaq remains on track to exceed $100 million in cross-sells by the end of 2027.

    ____________
    1 Represents revenue less transaction-based expenses.
    2 Refer to our reconciliations of U.S. GAAP to non-GAAP Solutions revenue, net revenue, net income attributable to Nasdaq, diluted earnings per share, operating income, operating expenses and organic impacts included in the attached schedules.
    3 Pro forma results are presented assuming AxiomSL and Calypso were included in the prior year quarterly results and revenue for AxiomSL on-premises contracts were recognized ratably for all of 2023 and 2024. Pro forma growth excludes the impacts of foreign currency except for AxiomSL and Calypso, which are not yet calculated on an organic basis. These pro forma results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this release.
    4 Constitutes revenue from our Capital Access Platforms and Financial Technology segments.
    5 Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
    6 U.S. GAAP operating expense and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.
    7 Gross Retention: ARR in the current period over ARR in the prior year period for existing customers excluding price increases and upsells and excluding new customers.
    8 Net Retention: ARR in the current period over ARR in the prior year period for existing customers including price increases and upsells and excluding new customers.

    ABOUT NASDAQ

    Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

    NON-GAAP INFORMATION

    In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, non-GAAP Solutions revenue, non-GAAP net revenue, non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating income, and non-GAAP operating expenses, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. Management uses this non-GAAP information internally, along with U.S. GAAP information, in evaluating our performance and in making financial and operational decisions. We believe our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance.

    These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone.

    We understand that analysts and investors regularly rely on non-GAAP financial measures, such as those noted above, to assess operating performance. We use these measures because they highlight trends more clearly in our business that may not otherwise be apparent when relying solely on U.S. GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our ongoing operating performance.

    Organic revenue and expense growth, organic change and organic impact are non-GAAP measures that reflect adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture. Reconciliations of these measures are described within the body of this release or in the reconciliation tables at the end of this release.

    Foreign exchange impact: In countries with currencies other than the U.S. dollar, revenue and expenses are translated using monthly average exchange rates. Certain discussions in this release isolate the impact of year-over-year foreign currency fluctuations to better measure the comparability of operating results between periods. Operating results excluding the impact of foreign currency fluctuations are calculated by translating the current period’s results by the prior period’s exchange rates.

    Restructuring programs: In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In connection with the program, we expect to incur pre-tax charges principally related to employee-related costs, consulting, asset impairments and contract terminations over a two-year period. We expect to achieve benefits in the form of both increased customer engagement and operating efficiencies. Costs related to the Adenza restructuring and the divisional alignment programs are recorded as “restructuring charges” in our consolidated statements of income. We exclude charges associated with these programs for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, dividend program, trading volumes, products and services, ability to transition to new business models or implement our new corporate structure, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, environmental, deleveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, geopolitical instability, government and industry regulation, interest rate risk, U.S. and global competition. Further information on these and other factors are detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

    WEBSITE DISCLOSURE

    Nasdaq intends to use its website, ir.nasdaq.com, as a means for disclosing material non-public information and for complying with SEC Regulation FD and other disclosure obligations.

    Media Relations Contact   Investor Relations Contact  
    Nick Jannuzzi   Ato Garrett
    973.760.1741   212.401.8737
    nicholas.jannuzzi.@nasdaq.com   ato.garrett@nasdaq.com

    NDAQF

     
    Nasdaq, Inc.
    Condensed Consolidated Statements of Income
    (in millions, except per share amounts)
    (unaudited)
               
      Three Months Ended   Nine Months Ended
      September 30,   September 30,   September 30,   September 30,
        2024       2023       2024       2023  
                     
    Revenues:              
    Capital Access Platforms $ 501     $ 456     $ 1,460     $ 1,309  
    Financial Technology   371       238       1,183       700  
    Market Services   1,022       747       2,700       2,378  
    Other Revenues   8       10       27       30  
      Total revenues   1,902       1,451       5,370       4,417  
    Transaction-based expenses:              
    Transaction rebates   (513 )     (447 )     (1,478 )     (1,377 )
    Brokerage, clearance and exchange fees   (243 )     (64 )     (470 )     (262 )
    Revenues less transaction-based expenses   1,146       940       3,422       2,778  
                   
    Operating Expenses:              
    Compensation and benefits   332       260       1,000       777  
    Professional and contract services   36       31       108       92  
    Technology and communication infrastructure   71       58       207       168  
    Occupancy   28       28       85       99  
    General, administrative and other   26       26       84       62  
    Marketing and advertising   11       12       34       30  
    Depreciation and amortization   153       64       460       198  
    Regulatory   9       9       37       27  
    Merger and strategic initiatives   10       4       23       51  
    Restructuring charges   22       17       103       49  
      Total operating expenses   698       509       2,141       1,553  
    Operating income   448       431       1,281       1,225  
    Interest income   8       72       20       86  
    Interest expense   (102 )     (101 )     (313 )     (174 )
    Other income (loss)   1       1       15       (6 )
    Net income (loss) from unconsolidated investees   1       (12 )     7       (8 )
    Income before income taxes   356       391       1,010       1,123  
    Income tax provision   51       97       250       262  
    Net income   305       294       760       861  
    Net loss attributable to noncontrolling interests   1             2       1  
    Net income attributable to Nasdaq $ 306     $ 294     $ 762     $ 862  
                   
    Per share information:              
    Basic earnings per share $ 0.53     $ 0.60     $ 1.32     $ 1.76  
    Diluted earnings per share $ 0.53     $ 0.60     $ 1.32     $ 1.74  
    Cash dividends declared per common share $ 0.24     $ 0.22     $ 0.70     $ 0.64  
                   
    Weighted-average common shares outstanding              
    for earnings per share:              
    Basic   575.1       491.3       575.6       490.7  
    Diluted   579.0       494.1       579.0       494.2  
                     
    Nasdaq, Inc.
    Revenue Detail
    (in millions)
    (unaudited)
                     
            Three Months Ended   Nine Months Ended
            September 30,   September 30,   September 30,   September 30,
              2024       2023       2024       2023  
                         
    CAPITAL ACCESS PLATFORMS              
      Data and Listing Services revenues $ 190     $ 188     $ 562     $ 559  
      Index revenues   182       144       517       383  
      Workflow and Insights revenues   129       124       381       367  
        Total Capital Access Platforms revenues   501       456       1,460       1,309  
                         
    FINANCIAL TECHNOLOGY              
      Financial Crime Management Technology revenues   69       58       200       163  
      Regulatory Technology revenues   68       35       253       102  
      Capital Markets Technology revenues   234       145       730       435  
        Total Financial Technology revenues   371       238       1,183       700  
                         
    MARKET SERVICES              
      Market Services revenues   1,022       747       2,700       2,378  
      Transaction-based expenses:              
          Transaction rebates   (513 )     (447 )     (1,478 )     (1,377 )
          Brokerage, clearance and exchange fees   (243 )     (64 )     (470 )     (262 )
        Total Market Services revenues, net   266       236       752       739  
                         
    OTHER REVENUES   8       10       27       30  
                         
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 1,146     $ 940     $ 3,422     $ 2,778  
                         
                         
    Nasdaq, Inc.
    Condensed Consolidated Balance Sheets
    (in millions)
               
          September 30,   December 31,
            2024       2023  
    Assets   (unaudited)    
    Current assets:        
      Cash and cash equivalents   $ 266     $ 453  
      Restricted cash and cash equivalents     42       20  
      Default funds and margin deposits     5,865       7,275  
      Financial investments     202       188  
      Receivables, net     944       929  
      Other current assets     239       231  
    Total current assets     7,558       9,096  
    Property and equipment, net     584       576  
    Goodwill     14,165       14,112  
    Intangible assets, net     7,072       7,443  
    Operating lease assets     388       402  
    Other non-current assets     793       665  
    Total assets   $ 30,560     $ 32,294  
               
    Liabilities        
    Current liabilities:        
      Accounts payable and accrued expenses   $ 289     $ 332  
      Section 31 fees payable to SEC     74       84  
      Accrued personnel costs     314       303  
      Deferred revenue     663       594  
      Other current liabilities     229       146  
      Default funds and margin deposits     5,865       7,275  
      Short-term debt     499       291  
    Total current liabilities     7,933       9,025  
    Long-term debt     9,359       10,163  
    Deferred tax liabilities, net     1,566       1,642  
    Operating lease liabilities     399       417  
    Other non-current liabilities     222       220  
    Total liabilities     19,479       21,467  
             
    Commitments and contingencies        
    Equity        
    Nasdaq stockholders’ equity:        
      Common stock     6       6  
      Additional paid-in capital     5,477       5,496  
      Common stock in treasury, at cost     (643 )     (587 )
      Accumulated other comprehensive loss     (1,952 )     (1,924 )
      Retained earnings     8,184       7,825  
    Total Nasdaq stockholders’ equity     11,072       10,816  
      Noncontrolling interests     9       11  
    Total equity     11,081       10,827  
    Total liabilities and equity   $ 30,560     $ 32,294  
               
               
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Net Income Attributable to Nasdaq and Diluted Earnings Per Share
    (in millions, except per share amounts)
    (unaudited)
                       
                   
           Three Months Ended   Nine Months Ended
          September 30,   September 30,   September 30,   September 30,
            2024       2023       2024       2023  
                       
    U.S. GAAP net income attributable to Nasdaq   $ 306     $ 294     $ 762     $ 862  
    Non-GAAP adjustments:                
      Adenza purchase accounting adjustment (1)     34             34        
      Amortization expense of acquired intangible assets (2)     122       37       366       112  
      Merger and strategic initiatives expense (3)     10       4       23       51  
      Restructuring charges (4)     22       17       103       49  
      Lease asset impairments (5)                       24  
      Net (income) loss from unconsolidated investees (6)     (1 )     12       (7 )     8  
      Legal and regulatory matters (7)                 16       (10 )
      Pension settlement charge (8)                 23        
      Other (income) loss (9)     1       9       (8 )     17  
      Total non-GAAP adjustments     188       79       550       251  
      Non-GAAP adjustment to the income tax provision (10)     (65 )     (24 )     (151 )     (76 )
      Tax on intra-group transfer of intellectual property assets (11)                 33        
      Total non-GAAP adjustments, net of tax     123       55       432       175  
    Non-GAAP net income attributable to Nasdaq   $ 429     $ 349     $ 1,194     $ 1,037  
                       
    U.S. GAAP diluted earnings per share   $ 0.53     $ 0.60     $ 1.32     $ 1.74  
      Total adjustments from non-GAAP net income above     0.21       0.11       0.74       0.36  
    Non-GAAP diluted earnings per share   $ 0.74     $ 0.71     $ 2.06     $ 2.10  
                       
    Weighted-average diluted common shares outstanding for earnings per share:     579.0       494.1       579.0       494.2  
                       
                       
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
           
    (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
           
    (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September 2022 announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (6) We exclude our share of the earnings and losses of our equity method investments. This provides a more meaningful analysis of Nasdaq’s ongoing operating performance or comparisons in Nasdaq’s performance between periods.
                       
    (7) For the nine months ended September 30, 2024, these items primarily included the settlement of a Swedish Financial Supervisory Authority, or SFSA, fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.
                       
    (8) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    (9) For the nine months ended September 30, 2024, and for the three and nine months ended September 30, 2023, other items primarily include net gains from strategic investments entered into through our corporate venture program, which are included in other income (loss) in our Condensed Consolidated Statements of Income.
                       
    (10) The non-GAAP adjustment to the income tax provision primarily includes the tax impact of each non-GAAP adjustment.
                       
    (11) For the nine months ended September 30, 2024, the completion of an intra-group transfer of intellectual property assets to U.S. headquarters resulted in a net tax expense of $33 million.
                       
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Revenues Less Transaction-Based Expenses
    (in millions)
    (unaudited)
                   
      Three Months Ended   Nine Months Ended
      September 30, 2024   September 30, 2024
      U.S. GAAP Revenues Less Transaction-Based Expenses Adenza purchase accounting adjustment (1) Non-GAAP Revenues Less Transaction-Based Expenses   U.S. GAAP Revenues Less Transaction-Based Expenses Adenza purchase accounting adjustment (1) Non-GAAP Revenues Less Transaction-Based Expenses
    CAPITAL ACCESS PLATFORMS $ 501 $ $ 501   $ 1,460 $ 1,460
                   
    FINANCIAL TECHNOLOGY              
    Financial Crime Management Technology revenues   69     69     200   200
    Regulatory Technology revenues (1)   68   34   102     253   34 287
    Capital Markets Technology revenues   234     234     730   730
    Total Financial Technology revenues   371   34   405     1,183   34 1,217
    SOLUTIONS REVENUES   872   34   906     2,643   34 2,677
                   
    MARKET SERVICES REVENUES, NET   266     266     752   752
    OTHER REVENUES   8     8     27   27
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 1,146 $ 34 $ 1,180   $ 3,422 $ 34 3,456
                   
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
                   
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Operating Income and Operating Margin
    (in millions)
    (unaudited)
                   
           Three Months Ended   Nine Months Ended
          September 30,   September 30,   September 30,   September 30,
            2024       2023       2024       2023  
                       
    U.S. GAAP operating income   $ 448     $ 431     $ 1,281     $ 1,225  
    Non-GAAP adjustments:                
      Adenza purchase accounting adjustment (1)     34             34        
      Amortization expense of acquired intangible assets (2)     122       37       366       112  
      Merger and strategic initiatives expense (3)     10       4       23       51  
      Restructuring charges (4)     22       17       103       49  
      Lease asset impairments (5)                       24  
      Legal and regulatory matters (6)                 16       (10 )
      Pension settlement charge (7)                 23        
      Other loss     1       2       4       2  
      Total non-GAAP adjustments     189       60       569       228  
    Non-GAAP operating income   $ 637     $ 491     $ 1,850     $ 1,453  
                     
    Revenues less transaction-based expenses   $ 1,146     $ 940     $ 3,422     $ 2,778  
                       
    U.S. GAAP operating margin (8)     39 %     46 %     37 %     44 %
                       
    Non-GAAP operating margin (9)     54 %     52 %     54 %     52 %
                       
                       
    (1) During the third quarter of 2024, as part of finalizing the purchase accounting of the Adenza acquisition, we implemented a change to the accounting treatment of the revenues associated with AxiomSL on-premises subscription contracts, which are included in the Regulatory Technology business within the Financial Technology segment. Starting in the third quarter of 2024, we began recognizing AxiomSL’s subscription-based revenues on a ratable basis over the contract term. As a result of this change, we recognized a one-time revenue reduction of $32 million in the third quarter of 2024, reflecting the net impact of the accounting change since the date of the Adenza acquisition. The adjustment of $34 million reflects the prior year impact of this change.
           
    (2) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
                       
    (3) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (4) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (5) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (6) For the nine months ended September 30, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.
                       
    (7) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    (8) U.S. GAAP operating margin equals U.S. GAAP operating income divided by revenues less transaction-based expenses.
                       
    (9) Non-GAAP operating margin equals non-GAAP operating income divided by non-GAAP revenues less transaction-based expenses.
                       
    Nasdaq, Inc.
    Reconciliation of U.S. GAAP to Non-GAAP Operating Expenses
    (in millions)
    (unaudited)
                   
           Three Months Ended   Nine Months Ended
          September 30,   September 30,   September 30,   September 30,
            2024       2023       2024       2023  
                       
    U.S. GAAP operating expenses   $ 698     $ 509     $ 2,141     $ 1,553  
    Non-GAAP adjustments:                
      Amortization expense of acquired intangible assets (1)     (122 )     (37 )     (366 )     (112 )
      Merger and strategic initiatives expense (2)     (10 )     (4 )     (23 )     (51 )
      Restructuring charges (3)     (22 )     (17 )     (103 )     (49 )
      Lease asset impairments (4)                       (24 )
      Legal and regulatory matters (5)                 (16 )     10  
      Pension settlement charge (6)                 (23 )      
      Other (loss)     (1 )     (2 )     (4 )     (2 )
      Total non-GAAP adjustments     (155 )     (60 )     (535 )     (228 )
    Non-GAAP operating expenses   $ 543     $ 449     $ 1,606     $ 1,325  
                       
                       
    (1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.
           
    (2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years which have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third party transaction costs. The frequency and amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three and nine months ended September 30, 2024 and September 30, 2023, these costs primarily relate to the Adenza acquisition. For the nine months ended September 30, 2024, these costs were partially offset by a termination payment recognized in the second quarter of 2024 relating to the proposed divestiture of our Nordic power trading and clearing business.
                       
    (3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, real estate impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional alignment program with a focus on realizing the full potential of this structure. In September 2024, we completed our divisional alignment program and recognized total pre-tax charges of $139 million over a two-year period.
                       
    (4) During the first quarter of 2023, we initiated a review of our real estate and facility capacity requirements due to our new and evolving work models. As a result, for the nine months ended September 30, 2023, we recorded impairment charges related to our operating lease assets and leasehold improvements associated with vacating certain leased office space, which are recorded in occupancy expense and depreciation and amortization expense in our Condensed Consolidated Statements of Income.
                       
    (5) For the nine months ended September 30, 2024, these items primarily included the settlement of a SFSA fine and accruals related to certain legal matters. For the nine months ended September 30, 2023, these items primarily included insurance recoveries related to legal matters. The fine is recorded in regulatory expense and the accruals and insurance recoveries are recorded in professional and contract services and general, administrative and other expense in the Condensed Consolidated Statements of Income.
                       
    (6) For the nine months ended September 30, 2024, we recorded a pre-tax loss as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The pre-tax loss is recorded in compensation and benefits in the Condensed Consolidated Statements of Income.
                       
    Nasdaq, Inc.
    Reconciliation of Pro Forma Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
    Non-GAAP Operating Income, and Non-GAAP Operating Margin
    (in millions)
    (unaudited)
     
      Three Months Ended   Three Months Ended                  
      September 30, 2024   September 30, 2023   Total Variance   FX (3)   Pro Forma Impacts
      Non-GAAP Adenza Adjustment (1)   Pro Forma   Non-GAAP   Adenza (2)   Pro Forma   $   %   $   $ %
    Capital Access Platforms revenues $ 501   $     $ 501     $ 456     $   $ 456     $ 45     10 %   $ 1   $ 44   9 %
                                           
    Financial Crime Management Technology revenues   69           69       58           58       11     20 %         11   20 %
    Regulatory Technology revenues   102     (2 )     100       35       56     91       9     10 %     1     8   8 %
    Capital Markets Technology revenues   234           234       145       71     216       18     8 %         18   8 %
    Financial Technology revenues   405     (2 )     403       238       127     365       38     10 %     1     37   10 %
    Solutions revenues (4)   906     (2 )     904       694       127     821       83     10 %     2     81   10 %
                                           
    Market Services, net revenues   266           266       236           236       30     13 %         30   13 %
    Other revenues   8           8       10           10       (2 )   (13 )%         (2 ) (14 )%
    Revenues less transaction-based expenses   1,180     (2 )     1,178       940       127     1,067       111     10 %     2     109   10 %
                                           
    Non-GAAP operating expenses   543           543       449       65     514       29     6 %     1     28   5 %
    Non-GAAP operating income $ 637   $ (2 )   $ 635     $ 491     $ 62   $ 553     $ 82     15 %   $ 1   $ 81   14 %
    Non-GAAP operating margin   54 %       54 %     52 %         52 %                  
                                           
    Note: Pro forma results are presented assuming AxiomSL and Calypso were included in the prior year quarterly results and revenue for AxiomSL on-premises contracts were recognized ratably for all of 2023 and 2024. Pro forma growth excludes the impacts of foreign currency except for AxiomSL and Calypso, which are not yet calculated on an organic basis. These pro forma results are not calculated, and do not intend to be calculated, in a manner consistent with the pro forma requirements in Article 11 of Regulation S-X. Preparation of this information in accordance with Article 11 would differ from results presented in this release. The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions.
                                           
    (1) Adjustment to remove the cumulative impact of changing to ratable revenue recognition for AxiomSL on-premises subscription contracts, which related to the first six months of 2024.
     
    (2) The Adenza results above are presented on a non-GAAP basis and have been adjusted for certain items. We believe presenting these measures excluding these items provides investors with greater transparency as they do not represent ongoing operations. These adjustments include intangible amortization of $39 million and other transaction and restructuring related costs of $3 million for the third quarter of 2023.
     
    (3) Reflects the impacts from changes in FX rates.
     
    (4) Represents Capital Access Platforms and Financial Technology Segments.
                                           
    Nasdaq, Inc.
    Reconciliation of Organic Impacts for U.S. Non-GAAP Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
    Non-GAAP Operating Income, and Non-GAAP Diluted Earnings Per Share
    (in millions)
    (unaudited)
                                   
      Three Months Ended                        
      September 30,   September 30,   Total Variance   Organic Impact   Other Impacts (1)
      2024   2023   $   %   $   %   $   %
    CAPITAL ACCESS PLATFORMS                              
    Data and Listing Services revenues $ 190   $ 188   $ 2     1 %   $ 1     1 %   $ 1     %
    Index revenues   182     144     38     26 %     38     26 %         %
    Workflow and Insights revenues   129     124     5     4 %     5     3 %         %
    Total Capital Access Platforms revenues   501     456     45     10 %     44     9 %     1     %
                                   
    FINANCIAL TECHNOLOGY                              
    Financial Crime Management Technology revenues   69     58     11     20 %     11     20 %         %
    Regulatory Technology revenues   102     35     67     190 %     2     6 %     65     185 %
    Capital Markets Technology revenues   234     145     89     62 %     7     5 %     82     57 %
    Total Financial Technology revenues   405     238     167     71 %     20     9 %     147     62 %
                                   
    SOLUTIONS REVENUES (2)   906     694     212     31 %     64     9 %     148     21 %
                                   
    MARKET SERVICES REVENUES, NET   266     236     30     13 %     30     13 %         %
                                   
    OTHER REVENUES   8     10     (2 )   (13 )%     (2 )   (14 )%         1 %
                                   
    REVENUES LESS TRANSACTION-BASED EXPENSES $ 1,180   $ 940   $ 240     26 %   $ 92     10 %   $ 148     16 %
                                   
    Non-GAAP Operating Expenses $ 543   $ 449   $ 94     21 %   $ 32     7 %   $ 62     14 %
                                   
    Non-GAAP Operating Income $ 637   $ 491   $ 146     30 %   $ 60     12 %   $ 86     18 %
                                   
    Non-GAAP diluted earnings per share $ 0.74   $ 0.71   $ 0.03     5 %   $ 0.14     20 %   $ (0.11 )   (16 )%
                                   
    Note: The period over period percentages are calculated based on exact dollars, and therefore may not agree to a recalculation based on rounded numbers shown in the tables above. The sum of the percentage changes may not tie to the percentage change in total variance due to rounding.
                                   
    (1) Primarily includes the impacts of the Adenza acquisition and changes in FX rates.
     
    (2) Represents Capital Access Platforms and Financial Technology Segments.
                                   
    Nasdaq, Inc.
    Quarterly Key Drivers Detail
    (unaudited)
                     
        Three Months Ended   Nine Months Ended
        September 30,   September 30,   September 30,   September 30,
          2024       2023       2024       2023  
    Capital Access Platforms              
      Annualized recurring revenues (in millions) (1) $ 1,254     $ 1,222     $ 1,254     $ 1,222  
      Initial public offerings              
      The Nasdaq Stock Market (2)   48       39       114       102  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic   1             7       3  
      Total new listings              
      The Nasdaq Stock Market (2)   138       87       301       230  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (3)   6       3       18       16  
      Number of listed companies              
      The Nasdaq Stock Market (4)   4,039       4,086       4,039       4,086  
      Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic (5)   1,186       1,236       1,186       1,236  
      Index              
      Number of licensed exchange traded products (6)   388       366       388       366  
      Period end ETP assets under management (AUM) tracking Nasdaq indexes (in billions) $ 600     $ 411     $ 600     $ 411  
      Quarterly average ETP AUM tracking Nasdaq indexes (in billions) $ 575     $ 423          
      TTM (7) net inflows ETP AUM tracking Nasdaq indexes (in billions) $ 62     $ 24     $ 62     $ 24  
      TTM (7) net appreciation ETP AUM tracking Nasdaq indexes (in billions) $ 143     $ 78     $ 143     $ 78  
                     
    Financial Technology              
      Annualized recurring revenues (in millions) (1)              
      Financial Crime Management Technology $ 268     $ 216     $ 268     $ 216  
      Regulatory Technology   350       132       350       132  
      Capital Markets Technology   864       511       864       511  
      Total Financial Technology $ 1,482     $ 859     $ 1,482     $ 859  
                     
    Market Services              
      Equity Derivative Trading and Clearing              
      U.S. equity options              
      Total industry average daily volume (in millions)   44.5       39.6       43.3       40.4  
      Nasdaq PHLX matched market share   9.4 %     11.0 %     9.9 %     11.2 %
      The Nasdaq Options Market matched market share   5.8 %     5.6 %     5.5 %     6.4 %
      Nasdaq BX Options matched market share   2.3 %     4.4 %     2.3 %     3.6 %
      Nasdaq ISE Options matched market share   6.8 %     5.7 %     6.7 %     5.8 %
      Nasdaq GEMX Options matched market share   2.7 %     3.0 %     2.6 %     2.3 %
      Nasdaq MRX Options matched market share   3.2 %     2.0 %     2.6 %     1.7 %
      Total matched market share executed on Nasdaq’s exchanges   30.2 %     31.7 %     29.6 %     31.0 %
      Nasdaq Nordic and Nasdaq Baltic options and futures              
      Total average daily volume of options and futures contracts (8)   213,911       245,986       235,137       298,785  
                     
      Cash Equity Trading              
      Total U.S.-listed securities              
      Total industry average daily share volume (in billions)   11.5       10.4       11.7       11.0  
      Matched share volume (in billions)   117.4       106.7       354.3       342.2  
      The Nasdaq Stock Market matched market share   15.6 %     15.5 %     15.6 %     15.9 %
      Nasdaq BX matched market share   0.3 %     0.4 %     0.4 %     0.4 %
      Nasdaq PSX matched market share   0.2 %     0.3 %     0.2 %     0.4 %
      Total matched market share executed on Nasdaq’s exchanges   16.1 %     16.2 %     16.2 %     16.7 %
      Market share reported to the FINRA/Nasdaq Trade Reporting Facility   44.7 %     40.2 %     43.0 %     35.2 %
      Total market share (9)   60.8 %     56.4 %     59.2 %     51.9 %
      Nasdaq Nordic and Nasdaq Baltic securities              
      Average daily number of equity trades executed on Nasdaq’s exchanges   609,167       556,257       645,622       676,132  
      Total average daily value of shares traded (in billions) $ 4.1     $ 3.6     $ 4.5     $ 4.5  
      Total market share executed on Nasdaq’s exchanges   71.6 %     71.6 %     72.2 %     70.6 %
                     
      Fixed Income and Commodities Trading and Clearing              
      Fixed Income              
      Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts   89,037       88,383       94,493       96,461  
                     
      (1) Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature, or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
       
      (2) New listings include IPOs, issuers that switched from other listing venues, closed-end funds and separately listed ETPs. For the three months ended September 30, 2024 and 2023, IPOs included 15 and 4 SPACs, respectively. For the nine months ended September 30, 2024 and 2023, IPOs included 28 and 19 SPACs, respectively.
       
      (3) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
       
      (4) Number of total listings on The Nasdaq Stock Market for the nine months ended September 30, 2024 and September 30, 2023 included 712 and 570 ETPs, respectively.
       
      (5) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
       
      (6) The number of listed ETPs as of September 30, 2023 has been updated to reflect a revised methodology whereby an ETP listed on multiple exchanges is counted as one product, rather than formerly being counted per exchange. This change has no impact on reported AUM.
       
      (7) Trailing 12-months.
       
      (8) Includes Finnish option contracts traded on Eurex for which Nasdaq and Eurex had a revenue sharing arrangement, which ended in the fourth quarter of 2023.
       
      (9) Includes transactions executed on The Nasdaq Stock Market’s, Nasdaq BX’s and Nasdaq PSX’s systems plus trades reported through the Financial Industry Regulatory Authority/Nasdaq Trade Reporting Facility.
                     

    The MIL Network

  • MIL-OSI: Virtu Announces Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) — Virtu Financial, Inc. (NASDAQ: VIRT), a leading provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to its clients and liquidity to the global markets, today reported results for the third quarter ended September 30, 2024.

    Third Quarter 2024:

    • Net income of $119.0 million; Normalized Adjusted Net Income1 of $132.1 million
    • Basic and diluted earnings per share of $0.65 and $0.64, respectively; Normalized Adjusted EPS1 of $0.82
    • Total revenues of $706.8 million; Trading income, net, of $444.0 million; Net income Margin of 16.8%2
      • Adjusted Net Trading Income1 of $388.0 million
    • Adjusted EBITDA1 of $214.8 million; Adjusted EBITDA Margin1 of 55.4%
    • Share buybacks of $48.4 million, or 1.7 million shares, under the Share Repurchase Program3

    The Virtu Financial, Inc. Board of Directors declared a quarterly cash dividend of $0.24 per share. This dividend is payable on December 15, 2024 to shareholders of record as of December 1, 2024.

    Note 1: Non-GAAP financial measures. Please see “Non-GAAP Financial Measures and Other Items” for more information.
    Note 2: Calculated by dividing Net income by Total revenue
    Note 3: Shares repurchased calculated on a settlement date basis.

    Financial Results

    Third Quarter 2024:

    Total revenues increased 12.2% to $706.8 million for this quarter, compared to $630.2 million for the same period in 2023. Trading income, net, increased 40.5% to $444.0 million for the quarter compared to $316.1 million for the same period in 2023. Net income totaled $119.0 million for this quarter, compared to net income of $117.6 million in the prior year quarter.

    Basic and diluted earnings per share for this quarter were $0.65 and $0.64, respectively, compared to basic and diluted earnings per share of $0.63 and $0.63, respectively, for the same period in 2023.

    Adjusted Net Trading Income increased 30.2% to $388.0 million for this quarter, compared to $298.0 million for the same period in 2023. Adjusted EBITDA increased 54.0% to $214.8 million for this quarter, compared to $139.5 million for the same period in 2023. Normalized Adjusted Net Income, removing one-time and non-cash items, increased 76.8% to $132.1 million for this quarter, compared to $74.7 million for the same period in 2023.

    Assuming all non-controlling interests had been exchanged for common stock, and the Company’s Normalized Adjusted Net Income before income taxes was subject to corporation taxes, Normalized Adjusted EPS was $0.82 for this quarter, compared to $0.45 for the same period in 2023.

    Operating Segment Information

    The Company has two operating segments: Market Making and Execution Services; and one non-operating segment: Corporate.

    Market Making principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker dealers, banks and institutions.

    Execution Services comprises agency-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker dealers. The Company also provides proprietary technology and infrastructure, workflow technology, and trading analytics services to select third parties. The segment also includes the results of the Company’s capital markets business, in which the Company acts as an agent for issuers in connection with at-the-market offerings and buyback programs.

    Corporate contains the Company’s investments, principally in strategic trading-related opportunities, and maintains corporate overhead expenses.

    The following tables show the trading income, net, total revenues and Adjusted Net Trading Income by segment for the three and nine months ended September 30, 2024 and 2023.

    Total revenues by segment
    (in thousands, unaudited)

        Three Months Ended September 30, 2024   Three Months Ended September 30, 2023
        Market
    Making
      Execution
    Services
      Corporate   Total   Market
    Making
      Execution
    Services
      Corporate   Total
    Trading income, net   $ 440,442   $ 3,555   $   $ 443,997   $ 310,523   $ 5,562   $   $ 316,085
    Commissions, net and technology services     12,721     118,900         131,621     6,343     103,933         110,276
    Interest and dividends income     122,065     3,164         125,229     124,803     2,890         127,693
    Other, net     1,432     108     4,453     5,993     75,682     68     360     76,110
    Total Revenues   $ 576,660   $ 125,727   $ 4,453   $ 706,840   $ 517,351   $ 112,453   $ 360   $ 630,164
                                                     
                                     
        Nine Months Ended September 30, 2024   Nine Months Ended September 30, 2023
        Market
    Making
      Execution
    Services
      Corporate   Total   Market
    Making
      Execution
    Services
      Corporate   Total
    Trading income, net   $ 1,264,214   $ 14,273   $   $ 1,278,487   $ 1,021,179   $ 13,585   $     $ 1,034,764
    Commissions, net and technology services     29,203     347,130         376,333     22,677     318,546           341,223
    Interest and dividends income     330,178     8,109         338,287     300,086     7,830           307,916
    Other, net     43,855     1,063     4,639     49,557     77,580     84     (4,171 )     73,493
    Total Revenues   $ 1,667,450   $ 370,575   $ 4,639   $ 2,042,664   $ 1,421,522   $ 340,045   $ (4,171 )   $ 1,757,396
                                                       

    Reconciliation of trading income, net to Adjusted Net Trading Income by operating segment
    (in thousands, unaudited)

        Three Months Ended September 30, 2024   Three Months Ended September 30, 2023
        Market
    Making
      Execution Services   Corporate   Total   Market
    Making
      Execution Services   Corporate   Total
    Trading income, net   $ 440,442     $ 3,555     $   $ 443,997     $ 310,523     $ 5,562     $   $ 316,085  
    Commissions, net and technology services     12,721       118,900           131,621       6,343       103,933           110,276  
    Interest and dividends income     122,065       3,164           125,229       124,803       2,890           127,693  
    Brokerage, exchange, clearance fees and payments for order flow, net     (152,316 )     (24,429 )         (176,745 )     (101,077 )     (22,168 )         (123,245 )
    Interest and dividends expense     (134,912 )     (1,158 )         (136,070 )     (132,523 )     (279 )         (132,802 )
    Adjusted Net Trading Income   $ 288,000     $ 100,032     $   $ 388,032     $ 208,069     $ 89,938     $   $ 298,007  
                                                                 
        Nine Months Ended September 30, 2024   Nine Months Ended September 30, 2023
        Market
    Making
      Execution Services   Corporate   Total   Market
    Making
      Execution Services   Corporate   Total
    Trading income, net   $ 1,264,214     $ 14,273     $   $ 1,278,487     $ 1,021,179     $ 13,585     $   $ 1,034,764  
    Commissions, net and technology services     29,203       347,130           376,333       22,677       318,546           341,223  
    Interest and dividends income     330,178       8,109           338,287       300,086       7,830           307,916  
    Brokerage, exchange, clearance fees and payments for order flow, net     (394,154 )     (73,177 )         (467,331 )     (323,868 )     (67,370 )         (391,238 )
    Interest and dividends expense     (382,200 )     (3,591 )         (385,791 )     (340,954 )     (1,942 )         (342,896 )
    Adjusted Net Trading Income   $ 847,241     $ 292,744     $   $ 1,139,985     $ 679,120     $ 270,649     $   $ 949,769  
                                                                 

    Financial Condition

    As of September 30, 2024, Virtu had $738.2 million in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1,769.4 million.

    Share Repurchase Program

    Since inception of the program in November 2020 through settlement date October 22, 2024, the Company repurchased approximately 49.2 million shares of Class A Common Stock and Virtu Financial Units for approximately $1,240.7 million. The Company has approximately $479.3 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program.

    Earnings Conference Call Information

    Virtu Financial will host a conference call to review its third quarter 2024 financial performance today, October 24th, at 8:30 a.m. ET. Members of the public may listen to the conference call through an audio webcast through the Investor Relations section of the firm’s website ir.virtu.com/investor-relations.

    Website Information

    We routinely post important information for investors on the Investor Relations section of our website, ir.virtu.com/investor-relations and also from time to time may use social media channels, including our Twitter account (twitter.com/virtufinancial) and our LinkedIn account (linkedin.com/company/virtu-financial), as an additional means of disclosing public information to investors, the media and others interested in us. It is possible that certain information we post on our website and on social media could be deemed to be material information, and we encourage investors, the media and others interested in us to review the business and financial information we post on our website and on the social media channels identified above, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website and our social media channels is not incorporated by reference into, and is not a part of, this document.

    Non-GAAP Financial Measures and Other Items

    To supplement our unaudited condensed consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), we use the following non-GAAP measures of financial performance:

    • “Adjusted Net Trading Income”, which is the amount of revenue we generate from our market making activities, or trading income, net, plus commissions, net and technology services, plus interest and dividends income and expense, net, less direct costs associated with those revenues, including brokerage, exchange, clearance fees and payments for order flow, net. Management believes that this measurement is useful for comparing general operating performance from period to period. Although we use Adjusted Net Trading Income as a financial measure to assess the performance of our business, the use of Adjusted Net Trading Income is limited because it does not include certain material costs that are necessary to operate our business. Our presentation of Adjusted Net Trading Income should not be construed as an indication that our future results will be unaffected by revenues or expenses that are not directly associated with our core business activities.
    • “EBITDA”, which measures our operating performance by adjusting Net Income to exclude Financing interest expense on long-term borrowings, Debt issue cost related to debt refinancing, prepayment, and commitment fees, Depreciation and amortization, Amortization of purchased intangibles and acquired capitalized software, and Income tax expense, and “Adjusted EBITDA”, which measures our operating performance by further adjusting EBITDA to exclude severance, transaction advisory fees and expenses, termination of office leases, charges related to share-based compensation and other expenses, which includes reserves for legal matters, and Other, net, which includes gains and losses from strategic investments and the sales of businesses.
    • “Normalized Adjusted Net Income”, “Normalized Adjusted Net Income before income taxes”, “Normalized provision for income taxes”, and “Normalized Adjusted EPS”, which we calculate by adjusting Net Income to exclude certain items, and other non-cash items, assuming that all vested and unvested Virtu Financial Units have been exchanged for Class A Common Stock, and applying an effective tax rate, which was approximately 24%.
    • “Adjusted Operating Expenses”, which we calculate by adjusting total operating expenses to exclude severance, share based compensation, reserves for legal matters, termination of office leases, connectivity early termination and write-down of assets.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, and Normalized Adjusted EPS and Adjusted Operating Expenses are non-GAAP financial measures used by management in evaluating operating performance and in making strategic decisions. Additional information provided regarding the breakdown of Total Adjusted Net Trading Income by category is also a non-GAAP financial measure but is not used by the Company in evaluating operating performance and in making strategic decisions. In addition, these non-GAAP financial measures or similar non-GAAP measures are used by research analysts, investment bankers and lenders to assess our operating performance. Management believes that the presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide useful information to investors regarding our results of operations because they assist both investors and management in analyzing and benchmarking the performance and value of our business. Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS provide indicators of general economic performance that are not affected by fluctuations in certain costs or other items. Accordingly, management believes that these measurements are useful for comparing general operating performance from period to period. Furthermore, our credit agreement contains tests based on metrics similar to Adjusted EBITDA. Other companies may define Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS differently, and as a result our measures of Adjusted Net Trading Income, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS may not be directly comparable to those of other companies. Although we use these non-GAAP financial measures as financial measures to assess the performance of our business, such use is limited because they do not include certain material costs necessary to operate our business.

    Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS should be considered in addition to, and not as a substitute for, Net Income in accordance with U.S. GAAP as a measure of performance. Our presentation of Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes and Normalized Adjusted EPS should not be construed as an indication that our future results will be unaffected by unusual or nonrecurring items. Adjusted Net Trading Income, Normalized Adjusted Net Income, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted EPS and our EBITDA-based measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under U.S. GAAP. Some of these limitations are:

    • they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
    • our EBITDA-based measures do not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
    • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and our EBITDA-based measures do not reflect any cash requirement for such replacements or improvements;
    • they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
    • they do not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations; and
    • they do not reflect limitations on our costs related to transferring earnings from our subsidiaries to us.

    Because of these limitations, Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS are not intended as alternatives to Net Income as indicators of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. These U.S. GAAP measurements include Net Income, cash flows from operations and cash flow data. See below a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.

    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Comprehensive Income (Unaudited)
             
        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except share and per share data)     2024       2023       2024       2023  
                     
    Revenues:                
    Trading income, net   $ 443,997     $ 316,085     $ 1,278,487     $ 1,034,764  
    Interest and dividends income     125,229       127,693       338,287       307,916  
    Commissions, net and technology services     131,621       110,276       376,333       341,223  
    Other, net     5,993       76,110       49,557       73,493  
    Total revenues     706,840       630,164       2,042,664       1,757,396  
                     
    Operating Expenses:                
    Brokerage, exchange, clearance fees and payments for order flow, net     176,745       123,245       467,331       391,238  
    Communication and data processing     59,601       57,066       177,110       170,837  
    Employee compensation and payroll taxes     107,646       97,221       314,185       296,214  
    Interest and dividends expense     136,070       132,802       385,791       342,896  
    Operations and administrative     24,939       22,416       69,346       72,204  
    Depreciation and amortization     16,486       15,815       48,640       47,076  
    Amortization of purchased intangibles and acquired capitalized software     11,848       15,967       38,688       48,007  
    Termination of office leases     17       364       50       314  
    Debt issue cost related to debt refinancing, prepayment and commitment fees     1,767       1,796       27,740       5,744  
    Transaction advisory fees and expenses     69       6       264       30  
    Financing interest expense on long-term borrowings     24,492       25,361       71,154       74,499  
    Total operating expenses     559,680       492,059       1,600,299       1,449,059  
                     
    Income before income taxes and noncontrolling interest     147,160       138,105       442,365       308,337  
    Provision for income taxes     28,137       20,512       83,917       51,117  
    Net income   $ 119,023     $ 117,593     $ 358,448     $ 257,220  
                     
    Noncontrolling interest     (59,071 )     (55,678 )     (176,093 )     (120,722 )
                     
    Net income available for common stockholders   $ 59,952     $ 61,915     $ 182,355     $ 136,498  
                     
    Earnings per share:                
    Basic   $ 0.65     $ 0.63     $ 1.95     $ 1.36  
    Diluted   $ 0.64     $ 0.63     $ 1.95     $ 1.36  
                     
    Weighted average common shares outstanding                
    Basic     87,152,658       93,408,537       88,093,082       95,376,590  
    Diluted     87,536,847       93,408,537       88,340,592       95,376,590  
                     
    Comprehensive income:                
    Net income   $ 119,023     $ 117,593     $ 358,448     $ 257,220  
    Other comprehensive income                
    Foreign exchange translation adjustment, net of taxes     6,835       (4,005 )     3,745       170  
    Net change in unrealized cash flow hedges gain (loss), net of taxes     (19,568 )     (7,646 )     (30,931 )     (12,612 )
    Comprehensive income   $ 106,290     $ 105,942     $ 331,262     $ 244,778  
    Less: Comprehensive income attributable to noncontrolling interest     (54,083 )     (50,832 )     (164,990 )     (115,557 )
    Comprehensive income available for common stockholders   $ 52,207     $ 55,110     $ 166,272     $ 129,221  
                                     
    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Adjusted Net Trading Income, EBITDA, Adjusted EBITDA, and selected Operating Margins.

        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except percentages)     2024       2023       2024       2023  
                     
    Reconciliation of Trading income, net to Adjusted Net Trading Income                
    Trading income, net   $ 443,997     $ 316,085     $ 1,278,487     $ 1,034,764  
    Commissions, net and technology services     131,621       110,276       376,333       341,223  
    Interest and dividends income     125,229       127,693       338,287       307,916  
    Brokerage, exchange, clearance fees and payments for order flow, net     (176,745 )     (123,245 )     (467,331 )     (391,238 )
    Interest and dividends expense     (136,070 )     (132,802 )     (385,791 )     (342,896 )
    Adjusted Net Trading Income   $ 388,032     $ 298,007     $ 1,139,985     $ 949,769  
                     
    Reconciliation of Net Income to EBITDA and Adjusted EBITDA                
    Net income     119,023       117,593       358,448       257,220  
    Financing interest expense on long-term borrowings     24,492       25,361       71,154       74,499  
    Debt issue cost related to debt refinancing, prepayment and commitment fees     1,767       1,796       27,740       5,744  
    Depreciation and amortization     16,486       15,815       48,640       47,076  
    Amortization of purchased intangibles and acquired capitalized software     11,848       15,967       38,688       48,007  
    Provision for income taxes     28,137       20,512       83,917       51,117  
    EBITDA   $ 201,753     $ 197,044     $ 628,587     $ 483,663  
    Severance     690       1,346       3,651       5,256  
    Transaction advisory fees and expenses     69       6       264       30  
    Termination of office leases     17       364       50       314  
    Other     (5,669 )     (74,599 )     (48,334 )     (67,396 )
    Share based compensation     17,945       15,353       50,941       47,108  
    Adjusted EBITDA   $ 214,805     $ 139,514     $ 635,159     $ 468,975  
                     
    Selected Operating Margins                
    GAAP Net income Margin (1)     16.8 %     18.7 %     17.5 %     14.6 %
    Non-GAAP Net income Margin (2)     30.7 %     39.5 %     31.4 %     27.1 %
    EBITDA Margin (3)     52.0 %     66.1 %     55.1 %     50.9 %
    Adjusted EBITDA Margin (4)     55.4 %     46.8 %     55.7 %     49.4 %
                     
    1 Calculated by dividing Net income by Total revenue.                
    2 Calculated by dividing Net income by Adjusted Net Trading Income.                
    3 Calculated by dividing EBITDA by Adjusted Net Trading Income.                
    4 Calculated by dividing Adjusted EBITDA by Adjusted Net Trading Income.                
                     
    Virtu Financial, Inc. and Subsidiaries
    Reconciliation to Non-GAAP Operating Data (Unaudited)
    (Continued)

    The following tables reconcile Condensed Consolidated Statements of Comprehensive Income to arrive at Normalized Adjusted Net Income before income taxes, Normalized provision for income taxes, Normalized Adjusted Net Income and Normalized Adjusted EPS.

        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except share and per share data)     2024       2023       2024       2023  
                     
    Reconciliation of Net Income to Normalized Adjusted Net Income                
    Net income   $ 119,023     $ 117,593     $ 358,448     $ 257,220  
    Provision for income taxes     28,137       20,512       83,917       51,117  
    Income before income taxes and noncontrolling interest   $ 147,160     $ 138,105     $ 442,365     $ 308,337  
    Amortization of purchased intangibles and acquired capitalized software     11,848       15,967       38,688       48,007  
    Debt issue cost related to debt refinancing, prepayment and commitment fees     1,767       1,796       27,740       5,744  
    Severance     690       1,346       3,651       5,256  
    Transaction advisory fees and expenses     69       6       264       30  
    Termination of office leases     17       364       50       314  
    Other     (5,669 )     (74,599 )     (48,334 )     (67,396 )
    Share based compensation     17,945       15,353       50,941       47,108  
    Normalized Adjusted Net Income before income taxes   $ 173,827     $ 98,338     $ 515,365     $ 347,400  
    Normalized provision for income taxes (1)     41,719       23,601       123,688       83,374  
    Normalized Adjusted Net Income   $ 132,108     $ 74,737     $ 391,677     $ 264,026  
                     
    Weighted Average Adjusted shares outstanding (2)     161,709,295       167,164,049       162,322,747       169,101,067  
                     
    Normalized Adjusted EPS   $ 0.82     $ 0.45     $ 2.41     $ 1.56  
                     
    (1) Reflects U.S. federal, state, and local income tax rate applicable to corporations of approximately 24% for all periods presented.
    (2) Assumes that (1) holders of all vested and unvested non-vesting Virtu Financial Units (together with corresponding shares of the Company’s Class C common stock, par value $0.00001 per share (the “Class C Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of Class A Common Stock on a one-for-one basis, (2) holders of all Virtu Financial Units (together with corresponding shares of the Company’s Class D common stock, par value $0.00001 per share (the “Class D Common Stock”)) have exercised their right to exchange such Virtu Financial Units for shares of the Company’s Class B common stock, par value $0.00001 per share (the “Class B Common Stock”) on a one-for-one basis, and subsequently exercised their right to convert the shares of Class B Common Stock into shares of Class A Common Stock on a one-for-one basis. Includes additional shares from the dilutive impact of options, restricted stock units and restricted stock awards outstanding under the Amended and Restated 2015 Management Incentive Plan during the three and six months ended September 30, 2024 and 2023.
    Virtu Financial, Inc. and Subsidiaries
    Condensed Consolidated Statements of Financial Condition (Unaudited)
             
    (in thousands, except share data)   September 30,
    2024
      December 31,
    2023
             
    Assets        
    Cash and cash equivalents   $ 701,405   $ 820,436  
    Cash and securities segregated under regulations and other     36,823     35,024  
    Securities borrowed     2,301,690     1,722,440  
    Securities purchased under agreements to resell     708,773     1,512,114  
    Receivables from broker-dealers and clearing organizations     1,194,193     737,724  
    Receivables from customers     169,565     106,245  
    Trading assets, at fair value     7,186,027     7,358,611  
    Property, equipment and capitalized software, net     93,899     100,365  
    Operating lease right-of-use assets     190,261     229,499  
    Goodwill     1,148,926     1,148,926  
    Intangibles (net of accumulated amortization)     214,971     257,520  
    Deferred taxes     122,399     133,760  
    Assets of business held for sale     4,637      
    Other assets     327,137     303,720  
    Total assets     14,400,706     14,466,384  
             
    Liabilities and equity        
    Liabilities        
    Short-term borrowings, net     128,761      
    Securities loaned     2,109,164     1,329,446  
    Securities sold under agreements to repurchase     1,045,811     1,795,994  
    Payables to broker-dealers and clearing organizations     619,640     1,167,712  
    Payables to customers     97,774     23,229  
    Trading liabilities, at fair value     6,335,171     6,071,352  
    Tax receivable agreement obligations     196,254     216,480  
    Accounts payable and accrued expenses and other liabilities     469,796     451,293  
    Operating lease liabilities     236,253     278,317  
    Long-term borrowings, net     1,741,543     1,727,205  
    Liabilities of business held for sale     1,184      
    Total liabilities     12,981,351     13,061,028  
             
    Total equity     1,419,355     1,405,356  
             
    Total liabilities and equity   $ 14,400,706   $ 14,466,384  
             
        As of September 30, 2024
    Ownership of Virtu Financial LLC Interests:   Interests   %
    Virtu Financial, Inc. – Class A Common Stock and Restricted Stock Units     91,902,168     57.2 %
    Non-controlling Interests (Virtu Financial LLC)     68,666,792     42.8 %
    Total Virtu Financial LLC Interests     160,568,960     100.0 %
                   

    About Virtu Financial, Inc.

    Virtu is a leading financial services firm that leverages cutting-edge technology to provide execution services and data, analytics and connectivity products to its clients and deliver liquidity to the global markets. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities. In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

    Cautionary Note Regarding Forward-Looking Statements

    This press release may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding Virtu Financial, Inc.’s (“Virtu’s”, the “Company’s” or “our”) business that are not historical facts are forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, and if the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. Forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties, some or all of which are not predictable or within Virtu’s control, that could cause actual performance or results to differ materially from those expressed in the statements. Those risks and uncertainties include, without limitation: risks relating to fluctuations in trading volume and volatilities in the markets in which we operate; the ability of our trading counterparties, clients, and various clearing houses to perform their obligations to us; the performance and reliability of our customized trading platform; the risk of material trading losses from our market making activities; swings in valuations in securities or other instruments in which we hold positions; increasing competition and consolidation in our industry; the risk that cash flow from our operations and other available sources of liquidity will not be sufficient to fund our various ongoing obligations, including operating expenses, short-term funding requirements, margin requirements, capital expenditures, debt service and dividend payments; potential consequences of recent SEC proposals focused on equity markets which may, if adopted, result in reduced overall and off-exchange trading volumes and market making opportunities, impose additional or heightened regulatory obligations on market makers and other market participants, and generally increase the implicit and explicit cost as well as the complexity of the U.S. equities eco-system for all participants; regulatory and legal uncertainties and potential changes associated with our industry, particularly in light of increased attention from media, regulators and lawmakers to market structure and related issues including but not limited to the retail trading environment, wholesale market making and off exchange trading more generally and payment for order flow arrangements; potential adverse results from legal or regulatory proceedings; our ability to remain technologically competitive and to ensure that the technology we utilize is not vulnerable to security risks, hacking and cyber-attacks; risks associated with third party software and technology infrastructure. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in forward-looking statements, see Virtu’s Securities and Exchange Commission filings, including but not limited to Virtu’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC.

    CONTACT         

    Investor & Media Relations
    Andrew Smith
    investor_relations@virtu.com
    media@virtu.com

    The MIL Network

  • MIL-Evening Report: Caitlin Johnstone: Israel continues its war on journalism

    Report by Dr David Robie – Café Pacific.

    COMMENTARY: By Caitlin Johnstone

    An Israeli airstrike destroyed the press office of the Lebanese news broadcaster Al Mayadeen on Wednesday night, continuing Israel’s historically unprecedented military assault on the press.

    Also in continuation of Israel’s war on journalism, the IDF has published the names of six Al Jazeera reporters who it claims are actually members of Hamas and Palestinian Islamic Jihad, citing as evidence documents which it claims Israeli forces found in Gaza.

    These allegations would mark these journalists as legitimate military targets.

    Al Jazeera has denounced these claims as unfounded, saying in a statement: “The Network views these fabricated accusations as a blatant attempt to silence the few remaining journalists in the region, thereby obscuring the harsh realities of the war from audiences worldwide.”

    There is of course no reason to ever believe any claim Israel makes about anything whatsoever absent mountains of independently verifiable evidence, after the mountains of lies it has churned out over the last year.

    The fact that Western news outlets are treating these allegations as plausible is evidence of their propagandistic nature.

    Israel claims everyone it wants to kill is Hamas. The journalists are Hamas, the hospitals are Hamas, the UN is Hamas, the aid trucks are Hamas, the schools are Hamas, the mosques are Hamas, the water infrastructure is Hamas, the civilian homes are all Hamas, and Hamas is hiding behind every woman and child in Gaza.

    The only exception to this rule is in Lebanon, in which case everyone Israel wants to kill is Hezbollah.


    “Israel hates truth” . . . Gaza: The Al Jazeera investigation into Israeli war crimes.

    Why journalists are killed
    Israel hates truth, which is why it kills journalists at every opportunity and blocks them from entering Gaza. This is because truth tends to have a marked anti-Israel bias.

    We saw this illustrated recently when Israel announced that there is a secret Hezbollah bunker underneath a hospital in Beirut, so the press simply sent a bunch of reporters to go and investigate because Israel can’t block the press from entering Lebanon like it can in Gaza.

    Even Western outlets like the BBC and Sky News entered the hospital and interviewed medical staff, reporting that they found no trace of evidence supporting Israel’s claims and that the hospital staff all denied the existence of any Hezbollah bunker on the premises.

    And you may be sure those outlets would have eagerly reported any sign of Hezbollah if they were given the opportunity.

    Criminal institutions need to function in the dark. They cannot function in the light of visibility and critical journalism and inconvenient video footage.

    That’s why the mafia murders witnesses. That’s why the inner workings of the US war machine are shrouded in government secrecy. That’s why Julian Assange spent five years in a maximum security prison.

    And that’s why Israel does everything it can to kill and obstruct journalists who tell the truth about its crimes.

    Caitlin Johnstone is an Australian independent journalist and poet. Her articles include The UN Torture Report On Assange Is An Indictment Of Our Entire Society. She publishes a website and Caitlin’s Newsletter. This article is republished with permission.

    This article was first published on Café Pacific.

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Submissions: WHO – Regional health leaders agree to improve financing to achieve universal health coverage, prioritize digital health

    Source: World Health Organization (WHO)

    MANILA, 24 October 2024 – Health leaders from nations across Asia and the Pacific today endorsed action frameworks on health financing and digital health at the seventy-fifth session of the World Health Organization (WHO) Regional Committee for the Western Pacific.

    Health financing to achieve universal health coverage and sustainable development

    Despite recent reforms in health financing, public health spending in the Western Pacific Region remains inadequate to meet growing needs. In many countries, current policies have not yet achieved the goals of equitable service access and financial protection. As a result, families are being pushed into poverty from the financial burden of paying for health services. In 2019 alone, more than 300 million people in the Western Pacific faced catastrophic health costs. Medicines and outpatient care are the primary drivers of out-of-pocket spending, exposing critical coverage gaps in primary health care (PHC) systems.

    Increasing public health spending, prioritizing PHC and adopting comprehensive financing strategies to promote health in national development are essential to achieving universal health coverage(UHCUHC) and sustainable development.

    The Regional Committee, WHO’s governing body in the Western Pacific, today endorsed the Regional Action Framework for Health Financing to Achieve Universal Health Coverage and Sustainable Development in the Western Pacific. The Framework aims to improve health financing through five action domains: 1) greater reliance on public funding for health; 2) more equitable and efficient health spending; 3) financing PHC now and into the future; 4) strengthening governance for health financing; and 5) promoting health for all in economic and social policy.

    Accelerating digital health transformation

    The Regional Committee also considered digital health – the use of information and communications technology to manage health and promote well-being – which is playing an increasingly significant role in transforming health care by leveraging technology to increase access to care. Digital health is growing rapidly in the Western Pacific Region. However, these changes bring about new challenges related to governance, coordination with a wide range of actors, sustainable financing, and the ethical and secure use of digital health tools and data.

    The Regional Action Framework on Digital Health in the Western Pacificendorsed by the Region’s health leaders today will guide countries and areas in developing national digital health plans. It will also facilitate collaboration with WHO to advance national digital health strategies aligned with country priorities. The Framework calls on countries to prioritize governance, socio-technical infrastructure, financing and economics, digital health solutions, and data in strengthening health systems in the era of digital transformation.

    Achieving transformative primary health care

    Although more than 45 years have passed since primary health care (PHC) was identified as the cornerstone for achieving Health for All in theDeclaration of Alma-Ata, many health systems in our Region remain hospital-centric, while PHC is understaffed and under resourced. With countries facing rapidly ageing populations, an increased burden of NCDs and health security risks, a worsening economic outlook and other changes, transformative PHC is more critical than ever.

    In a panel discussion held at the Regional Committee on Tuesday, delegates from Cambodia and Singapore and a representative of the Asian Development Bank discussed how a transformative PHC approach – which emphasizes keeping people healthy rather than only treating the sick, and the importance of active community engagement and effective communication – can improve health outcomes.

    Recognizing the need to support countries in achieving transformative PHC, the Regional Committee in 2022 endorsed the Regional Framework on the Future of Primary Health Care in the Western Pacific. It highlights five strategic areas for health system transformation, covering models of service delivery, individual and community empowerment, the health workforce, health financing and enabling healthy environments. WHO is supporting countries with implementation of the Regional Framework.

    Improving oral health

    On Wednesday, delegates from Malaysia, Tonga and Vanuatu participated in a panel discussion on oral health. In the Western Pacific Region, the rate of oral diseases such as tooth decay, gum disease and tooth loss has grown by 30% over the past 30 years. One in five adults over the age of 60 has lost all their teeth, causing difficulty in eating, poor nutrition and a lower quality of life.

    Oral diseases disproportionally affect poor and disadvantaged populations. But they are mostly preventable and can be treated in their early stages. Left unaddressed, they cause pain and reduce the quality of life of individuals affected. At the population level, they add to the burden of noncommunicable diseases and impact health systems and economies in the Region.

    The WHO Global Strategy and Action Plan on Oral Health (2023–2030)was developed in response to a 2021 World Health Assembly resolution calling for a shift in oral health policy planning from traditional restorative dental care to a focus on promoting oral health and preventing oral diseases. WHO is working to accelerate the implementation of the Global Strategy in the Western Pacific, making oral health an integral part of universal health coverage and improving access to essential oral health services for everyone, especially the vulnerable.

    Accreditation of non-State actors to attend Regional Committee meetings

    The Regional Committee for the Western Pacific also adopted a decision to formalize the procedure for non-State actors that are not already in official relations with WHO to be accredited as observers at their meetings. The decision highlights the valuable role that non-State actors play in society, recognizes their contributions to advancing public health and to supporting the achievement of WHO’s strategic objectives. It marks an important step towards strengthening regional health governance, and a more inclusive approach to knowledge sharing, dialogue and health policy making.

    Expected closure of the session, time and place of next year’s meeting

    The seventy-fifth session of the Regional Committee for the Western Pacific is expected to conclude tomorrow.

    Notes:

    The seventy-fifth session of the Western Pacific Regional Committee began on 21 October and is scheduled to conclude on 25 October at WHO’s Regional Office for the Western Pacific in Manila, Philippines. The agenda and timetable are available online. A livestream of proceedings, all other official documents, as well as fact sheets and videos on the issues to be addressed can be accessed here. For real-time updates, follow @WHOWPRO on Facebook, X, Instagram and YouTube and the hashtag #RCM75.

    Working with 194 Member States across six regions, WHO is the United Nations specialized agency responsible for public health. Each WHO region has a regional committee – a governing body composed of ministers of health and senior officials from Member States. Each regional committee meets annually to agree on health actions and to chart priorities for WHO’s work.

    The WHO Western Pacific Region is home to more than 1.9 billion people across 37 countries and areas: American Samoa (United States of America), Australia, Brunei Darussalam, Cambodia, China, Cook Islands, Fiji, French Polynesia (France), Guam (United States of America), Hong Kong SAR (China), Japan, Kiribati, the Lao People’s Democratic Republic, Macao SAR (China), Malaysia, the Marshall Islands, the Federated States of Micronesia, Mongolia, Nauru, New Caledonia (France), New Zealand, Niue, the Commonwealth of the Northern Mariana Islands (United States of America), Palau, Papua New Guinea, the Philippines, Pitcairn Islands (United Kingdom of Great Britain and Northern Ireland), the Republic of Korea, Samoa, Singapore, Solomon Islands, Tokelau, Tonga, Tuvalu, Vanuatu and Viet Nam, Wallis and Futuna (France).

    MIL OSI – Submitted News

  • MIL-OSI Europe: Encyclical Letter “Dilexit nos” of the Holy Father Francis on the human and divine love of the heart of Jesus Christ

    Source: The Holy See

    Encyclical Letter “Dilexit nos” of the Holy Father Francis on the human and divine love of the heart of Jesus Christ, 24.10.2024
    ENCYCLICAL LETTER
    DILEXIT NOS
    OF THE HOLY FATHER
    FRANCIS
    ON THE HUMAN AND DIVINE LOVE
    OF THE HEART OF JESUS CHRIST
    1. HE LOVED US”, Saint Paul says of Christ (cf.Rom8:37), in order to make us realize that nothing can ever “separate us” from that love (Rom8:39).Paul could say this with certainty because Jesus himself had told his disciples, “I have loved you” (Jn15:9, 12).Even now, the Lord says to us, “I have called you friends” (Jn15:15).His open heart has gone before us and waits for us, unconditionally, asking only to offer us his love and friendship.For “he loved us first” (cf.1 Jn4:10).Because of Jesus, “we have come to know and believe in the love that God has for us” (1 Jn4:16).
    CHAPTER ONE
    THE IMPORTANCE OF THE HEART
    2. The symbol of the heart has often been used to express the love of Jesus Christ.Some have questioned whether this symbol is still meaningful today.Yet living as we do in an age of superficiality, rushing frenetically from one thing to another without really knowing why, and ending up as insatiable consumers and slaves to the mechanisms of a market unconcerned about the deeper meaning of our lives, all of us need to rediscover the importance of the heart.[1]
    WHAT DO WE MEAN BY “THE HEART”?
    3. In classical Greek, the wordkardíadenotes the inmost part of human beings, animals and plants.For Homer, it indicates not only the centre of the body, but also the human soul and spirit.In the Iliad, thoughts and feelings proceed from the heart and are closely bound one to another.[2]The heart appears as the locus of desire and the place where important decisions take shape.[3]In Plato, the heart serves, as it were, to unite the rational and instinctive aspects of the person, since the impulses of both the higher faculties and the passions were thought to pass through the veins that converge in the heart.[4]From ancient times, then, there has been an appreciation of the fact that human beings are not simply a sum of different skills, but a unity of body and soul with a coordinating centre that provides a backdrop of meaning and direction to all that a person experiences.
    4. The Bible tells us that, “the Word of God is living and active… it is able to judge the thoughts and intentions of the heart” (Heb4:12).In this way, it speaks to us of the heart as a core that lies hidden bene ath all outward appearances, even beneath the superficial thoughts that can lead us astray.The disciples of Emmaus, on their mysterious journey in the company of the risen Christ, experienced a moment of anguish, confusion, despair and disappointment.Yet, beyond and in spite of this, something was happening deep within them: “Were not our hearts burning within us while he was talking to us on the road?” (Lk 24:32).
    5. The heart is also the locus of sincerity, where deceit and disguise have no place.It usually indicates our true intentions, what we really think, believe and desire, the “secrets” that we tell no one: in a word, the naked truth about ourselves.It is the part of us that is neither appearance or illusion, but is instead authentic, real, entirely “who we are”.That is why Samson, who kept from Delilah the secret of his strength, was asked by her, “How can you say, ‘I love you’, when your heart is not with me?” (Judg16:15).Only when Samson opened his heart to her, did she realize “that he had told her his whole secret” (Judg16:18).
    6. This interior reality of each person is frequently concealed behind a great deal of “foliage”, which makes it difficult for us not only to understand ourselves, but even more to know others: “The heart is devious above all else; it is perverse, who can understand it?” (Jer17:9).We can understand, then, the advice of the Book of Proverbs: “Keep your heart with all vigilance, for from it flow the springs of life; put away from you crooked speech” (4:23-24).Mere appearances, dishonesty and deception harm and pervert the heart.Despite our every attempt to appear as something we are not, our heart is the ultimate judge, not of what we show or hide from others, but of who we truly are.It is the basis for any sound life project; nothing worthwhile can be undertaken apart from the heart.False appearances and untruths ultimately leave us empty-handed.
    7. As an illustration of this, I would repeat a story I have already told on another occasion.“For the carnival, when we were children, my grandmother would make a pastry using a very thin batter.When she dropped the strips of batter into the oil, they would expand, but then, when we bit into them, they were empty inside.In the dialect we spoke, those cookies were called ‘lies’…My grandmother explained why: ‘Like lies, they look big, but are empty inside; they are false, unreal’”.[5]
    8. Instead of running after superficial satisfactions and playing a role for the benefit of others, we would do better to think about the really important questions in life.Who am I, really?What am I looking for?What direction do I want to give to my life, my decisions and my actions?Why and for what purpose am I in this world?How do I want to look back on my life once it ends?What meaning do I want to give to all my experiences?Who do I want to be for others?Who am I for God?All these questions lead us back to the heart.
    RETURNING TO THE HEART
    9. In this “liquid” world of ours, we need to start speaking once more about the heart and thinking about this place where every person, of every class and condition, creates a synthesis, where they encounter the radical source of their strengths, convictions, passions and decisions.Yet, we find ourselves immersed in societies of serial consumers who live from day to day, dominated by the hectic pace and bombarded by technology, lacking in the patience needed to engage in the processes that an interior life by its very nature requires.In contemporary society, people “risk losing their centre, the centre of their very selves”.[6]“Indeed, the men and women of our time often find themselves confused and torn apart, almost bereft of an inner principle that can create unity and harmony in their lives and actions.Models of behaviour that, sadly, are now widespread exaggerate our rational-technological dimension or, on the contrary, that of our instincts”.[7]No room is left for the heart.
    10. The issues raised by today’s liquid society are much discussed, but this depreciation of the deep core of our humanity – the heart – has a much longer history.We find it already present in Hellenic and pre-Christian rationalism, in post-Christian idealism and in materialism in its various guises.The heart has been ignored in anthropology, and the great philosophical tradition finds it a foreign notion, preferring other concepts such as reason, will or freedom.The very meaning of the term is imprecise and hard to situate within our human experience.Perhaps this is due to the difficulty of treating it as a “clear and distinct idea”, or because it entails the question of self-understanding, where the deepest part of us is also that which is least known.Even encountering others does not necessarily prove to be a way of encountering ourselves, inasmuch as our thought patterns are dominated by an unhealthy individualism.Many people feel safer constructing their systems of thought in the more readily controllable domain of intelligence and will.The failure to make room for the heart, as distinct from our human powers and passions viewed in isolation from one another, has resulted in a stunting of the idea of a personal centre, in which love, in the end, is the one reality that can unify all the others.
    11. If we devalue the heart, we also devalue what it means to speak from the heart, to act with the heart, to cultivate and heal the heart.If we fail to appreciate the specificity of the heart, we miss the messages that the mind alone cannot communicate; we miss out on the richness of our encounters with others; we miss out on poetry.We also lose track of history and our own past, since our real personal history is built with the heart.At the end of our lives, that alone will matter.
    12. It must be said, then, that we have a heart, a heart that coexists with other hearts that help to make it a “Thou”.Since we cannot develop this theme at length, we will take a character from one of Dostoevsky’s novels, Nikolai Stavrogin.[8]Romano Guardini argues that Stavrogin is the very embodiment of evil, because his chief trait is his heartlessness: “Stavrogin has no heart, hence his mind is cold and empty and his body sunken in bestial sloth and sensuality.He has no heart, hence he can draw close to no one and no one can ever truly draw close to him.For only the heart creates intimacy, true closeness between two persons.Only the heart is able to welcome and offer hospitality.Intimacy is the proper activity and the domain of the heart.Stavrogin is always infinitely distant, even from himself, because a man can enter into himself only with the heart, not with the mind.It is not in a man’s power to enter into his own interiority with the mind.Hence, if the heart is not alive, man remains a stranger to himself”.[9]
    13. All our actions need to be put under the “political rule” of the heart.In this way, our aggressiveness and obsessive desires will find rest in the greater good that the heart proposes and in the power of the heart to resist evil.The mind and the will are put at the service of the greater good by sensing and savouring truths, rather than seeking to master them as the sciences tend to do.The will desires the greater good that the heart recognizes, while the imagination and emotions are themselves guided by the beating of the heart.
    14. It could be said, then, that I am my heart, for my heart is what sets me apart, shapes my spiritual identity and puts me in communion with other people.The algorithms operating in the digital world show that our thoughts and will are much more “uniform” than we had previously thought.They are easily predictable and thus capable of being manipulated.That is not the case with the heart.
    15. The word “heart” proves its value for philosophy and theology in their efforts to reach an integral synthesis.Nor can its meaning be exhausted by biology, psychology, anthropology or any other science.It is one of those primordial words that “describe realities belonging to man precisely in so far as he is one whole (as a corporeo-spiritual person)”.[10]It follows that biologists are not being more “realistic” when they discuss the heart, since they see only one aspect of it; the whole is not less real, but even more real.Nor can abstract language ever acquire the same concrete and integrative meaning.The word “heart” evokes the inmost core of our person, and thus it enables us to understand ourselves in our integrity and not merely under one isolated aspect.
    16. This unique power of the heart also helps us to understand why, when we grasp a reality with our heart, we know it better and more fully.This inevitably leads us to the love of which the heart is capable, for “the inmost core of reality is love”.[11]For Heidegger, as interpreted by one contemporary thinker, philosophy does not begin with a simple concept or certainty, but with a shock: “Thought must be provoked before it begins to work with concepts or while it works with them.Without deep emotion, thought cannot begin.The first mental image would thus be goose bumps.What first stirs one to think and question is deep emotion.Philosophy always takes place in a basic mood (Stimmung)”.[12]That is where the heart comes in, since it “houses the states of mind and functions as a ‘keeper of the state of mind’.The ‘heart’ listens in a non-metaphoric way to ‘the silent voice’ of being, allowing itself to be tempered and determined by it”.[13]
    THE HEART UNITES THE FRAGMENTS
    17. At the same time, the heart makes all authentic bonding possible, since a relationship not shaped by the heart is incapable of overcoming the fragmentation caused by individualism.Two monads may approach one another, but they will never truly connect.A society dominated by narcissism and self-centredness will increasingly become “heartless”.This will lead in turn to the “loss of desire”, since as other persons disappear from the horizon we find ourselves trapped within walls of our own making, no longer capable of healthy relationships.[14]As a result, we also become incapable of openness to God.As Heidegger puts it, to be open to the divine we need to build a “guest house”.[15]
    18. We see, then, that in the heart of each person there is a mysterious connection between self-knowledge and openness to others, between the encounter with one’s personal uniqueness and the willingness to give oneself to others.We become ourselves only to the extent that we acquire the ability to acknowledge others, while only those who can acknowledge and accept themselves are then able to encounter others.
    19. The heart is also capable of unifying and harmonizing our personal history, which may seem hopelessly fragmented, yet is the place where everything can make sense.The Gospel tells us this in speaking of Our Lady, who saw things with the heart.She was able to dialogue with the things she experienced by pondering them in her heart, treasuring their memory and viewing them in a greater perspective.The best expression of how the heart thinks is found in the two passages in Saint Luke’s Gospel that speak to us of how Mary “treasured (synetérei) all these things and pondered (symbállousa) them in her heart” (cf.Lk2:19 and 51).The Greek verbsymbállein, “ponder”, evokes the image of putting two things together (“symbols”) in one’s mind and reflecting on them, in a dialogue with oneself.In Luke 2:51, the verb used isdietérei, which has the sense of “keep”.What Mary “kept” was not only her memory of what she had seen and heard, but also those aspects of it that she did not yet understand; these nonetheless remained present and alive in her memory, waiting to be “put together” in her heart.
    20. In this age of artificial intelligence, we cannot forget that poetry and love are necessary to save our humanity.No algorithm will ever be able to capture, for example, the nostalgia that all of us feel, whatever our age, and wherever we live, when we recall how we first used a fork to seal the edges of the pies that we helped our mothers or grandmothers to make at home. It was a moment of culinary apprenticeship, somewhere between child-play and adulthood, when we first felt responsible for working and helping one another.Along with the fork, I could also mention thousands of other little things that are a precious part of everyone’s life: a smile we elicited by telling a joke, a picture we sketched in the light of a window, the first game of soccer we played with a rag ball, the worms we collected in a shoebox, a flower we pressed in the pages of a book, our concern for a fledgling bird fallen from its nest, a wish we made in plucking a daisy.All these little things, ordinary in themselves yet extraordinary for us, can never be captured by algorithms.The fork, the joke, the window, the ball, the shoebox, the book, the bird, the flower: all of these live on as precious memories “kept” deep in our heart.
    21. This profound core, present in every man and woman, is not that of the soul, but of the entire person in his or her unique psychosomatic identity.Everything finds its unity in the heart, which can be the dwelling-place of love in all its spiritual, psychic and even physical dimensions.In a word, if love reigns in our heart, we become, in a complete and luminous way, the persons we are meant to be, for every human being is created above all else for love.In the deepest fibre of our being, we were made to love and to be loved.
    22. For this reason, when we witness the outbreak of new wars, with the complicity, tolerance or indifference of other countries, or petty power struggles over partisan interests, we may be tempted to conclude that our world is losing its heart.We need only to see and listen to the elderly women – from both sides – who are at the mercy of these devastating conflicts.It is heart-breaking to see them mourning for their murdered grandchildren, or longing to die themselves after losing the homes where they spent their entire lives.Those women, who were often pillars of strength and resilience amid life’s difficulties and hardships, now, at the end of their days, are experiencing, in place of a well-earned rest, only anguish, fear and outrage.Casting the blame on others does not resolve these shameful and tragic situations.To see these elderly women weep, and not feel that this is something intolerable, is a sign of a world that has grown heartless.
    23. Whenever a person thinks, questions and reflects on his or her true identity, strives to understand the deeper questions of life and to seek God, or experiences the thrill of catching a glimpse of truth, it leads to the realization that our fulfilment as human beings is found in love.In loving, we sense that we come to know the purpose and goal of our existence in this world.Everything comes together in a state of coherence and harmony.It follows that, in contemplating the meaning of our lives, perhaps the most decisive question we can ask is, “Do I have a heart?”
    FIRE
    24. All that we have said has implications for the spiritual life.For example, the theology underlying the Spiritual Exercises of Saint Ignatius Loyola is based on “affection” (affectus).The structure of the Exercises assumes a firm and heartfelt desire to “rearrange” one’s life, a desire that in turn provides the strength and the wherewithal to achieve that goal.The rules and the compositions of place that Ignatius furnishes are in the service of something much more important, namely, the mystery of the human heart.Michel de Certeau shows how the “movements” of which Ignatius speaks are the “inbreaking” of God’s desire and the desire of our own heart amid the orderly progression of the meditations.Something unexpected and hitherto unknown starts to speak in our heart, breaking through our superficial knowledge and calling it into question.This is the start of a new process of “setting our life in order”, beginning with the heart.It is not about intellectual concepts that need to be put into practice in our daily lives, as if affectivity and practice were merely the effects of – and dependent upon – the data of knowledge.[16]
    25. Where the thinking of the philosopher halts, there the heart of the believer presses on in love and adoration, in pleading for forgiveness and in willingness to serve in whatever place the Lord allows us to choose, in order to follow in his footsteps.At that point, we realize that in God’s eyes we are a “Thou”, and for that very reason we can be an “I”.Indeed, only the Lord offers to treat each one of us as a “Thou”, always and forever.Accepting his friendship is a matter of the heart; it is what constitutes us as persons in the fullest sense of that word.
    26. Saint Bonaventure tells us that in the end we should not pray for light, but for “raging fire”.[17]He teaches that, “faith is in the intellect, in such a way as to provoke affection.In this sense, for example, the knowledge that Christ died for us does not remain knowledge, but necessarily becomes affection, love”.[18]Along the same lines, Saint John Henry Newman took as his motto the phraseCor ad cor loquitur, since, beyond all our thoughts and ideas, the Lord saves us by speaking to our hearts from his Sacred Heart.This realization led him, the distinguished intellectual, to recognize that his deepest encounter with himself and with the Lord came not from his reading or reflection, but from his prayerful dialogue, heart to heart, with Christ, alive and present.It was in the Eucharist that Newman encountered the living heart of Jesus, capable of setting us free, giving meaning to each moment of our lives, and bestowing true peace: “O most Sacred, most loving Heart of Jesus, Thou art concealed in the Holy Eucharist, and Thou beatest for us still…I worship Thee then with all my best love and awe, with my fervent affection, with my most subdued, most resolved will.O my God, when Thou dost condescend to suffer me to receive Thee, to eat and drink Thee, and Thou for a while takest up Thy abode within me, O make my heart beat with Thy Heart.Purify it of all that is earthly, all that is proud and sensual, all that is hard and cruel, of all perversity, of all disorder, of all deadness.So fill it with Thee, that neither the events of the day nor the circumstances of the time may have power to ruffle it, but that in Thy love and Thy fear it may have peace”.[19]
    27. Before the heart of Jesus, living and present, our mind, enlightened by the Spirit, grows in the understanding of his words and our will is moved to put them into practice.This could easily remain on the level of a kind of self-reliant moralism.Hearing and tasting the Lord, and paying him due honour, however, is a matter of the heart. Only the heart is capable of setting our other powers and passions, and our entire person, in a stance of reverence and loving obedience before the Lord.
    THE WORLD CAN CHANGE, BEGINNING WITH THE HEART
    28. It is only by starting from the heart that our communities will succeed in uniting and reconciling differing minds and wills, so that the Spirit can guide us in unity as brothers and sisters.Reconciliation and peace are also born of the heart.The heart of Christ is “ecstasy”, openness, gift and encounter.In that heart, we learn to relate to one another in wholesome and happy ways, and to build up in this world God’s kingdom of love and justice.Our hearts, united with the heart of Christ, are capable of working this social miracle.
    29. Taking the heart seriously, then, has consequences for society as a whole.The Second Vatican Council teaches that, “every one of us needs a change of heart; we must set our gaze on the whole world and look to those tasks we can all perform together in order to bring about the betterment of our race”.[20]For “the imbalances affecting the world today are in fact a symptom of a deeper imbalance rooted in the human heart”.[21]In pondering the tragedies afflicting our world, the Council urges us to return to the heart.It explains that human beings “by their interior life, transcend the entire material universe; they experience this deep interiority when they enter into their own heart, where God, who probes the heart, awaits them, and where they decide their own destiny in the sight of God”.[22]
    30. This in no way implies an undue reliance on our own abilities.Let us never forget that our hearts are not self-sufficient, but frail and wounded.They possess an ontological dignity, yet at the same time must seek an ever more dignified life.[23]The Second Vatican Council points out that “the ferment of the Gospel has aroused and continues to arouse in human hearts an unquenchable thirst for human dignity”.[24]Yet to live in accordance with this dignity, it is not enough to know the Gospel or to carry out mechanically its demands.We need the help of God’s love.Let us turn, then, to the heart of Christ, that core of his being, which is a blazing furnace of divine and human love and the most sublime fulfilment to which humanity can aspire.There, in that heart, we truly come at last to know ourselves and we learn how to love.
    31. In the end, that Sacred Heart is the unifying principle of all reality, since “Christ is the heart of the world, and the paschal mystery of his death and resurrection is the centre of history, which, because of him, is a history of salvation”.[25]All creatures “are moving forward with us and through us towards a common point of arrival, which is God, in that transcendent fullness where the risen Christ embraces and illumines all things”.[26]In the presence of the heart of Christ, I once more ask the Lord to have mercy on this suffering world in which he chose to dwell as one of us.May he pour out the treasures of his light and love, so that our world, which presses forward despite wars, socio-economic disparities and uses of technology that threaten our humanity, may regain the most important and necessary thing of all: its heart.
    CHAPTER TWO
    ACTIONS AND WORDS OF LOVE
    32. The heart of Christ, as the symbol of the deepest and most personal source of his love for us, is the very core of the initial preaching of the Gospel.It stands at the origin of our faith, as the wellspring that refreshes and enlivens our Christian beliefs.
    ACTIONS THAT REFLECT THE HEART
    33. Christ showed the depth of his love for us not by lengthy explanations but by concrete actions.By examining his interactions with others, we can come to realize how he treats each one of us, even though at times this may be difficult to see.Let us now turn to the place where our faith can encounter this truth: the word of God.
    34. The Gospel tells us that Jesus “came to his own” (cf.Jn1:11).Those words refer to us, for the Lord does not treat us as strangers but as a possession that he watches over and cherishes.He treats us truly as “his own”.This does not mean that we are his slaves, something that he himself denies: “I do not call you servants” (Jn15:15).Rather, it refers to the sense of mutual belonging typical of friends.Jesus came to meet us, bridging all distances; he became as close to us as the simplest, everyday realities of our lives.Indeed, he has another name, “Emmanuel”, which means “God with us”, God as part of our lives, God as living in our midst.The Son of God became incarnate and “emptied himself, taking the form of a slave” (Phil2:7).
    35. This becomes clear when we see Jesus at work.He seeks people out, approaches them, ever open to an encounter with them.We see it when he stops to converse with the Samaritan woman at the well where she went to draw water (cf.Jn4:5-7).We see it when, in the darkness of night, he meets Nicodemus, who feared to be seen in his presence (cf.Jn3:1-2).We marvel when he allows his feet to be washed by a prostitute (cf.Lk7:36-50), when he says to the woman caught in adultery, “Neither do I condemn you” (Jn8:11), or again when he chides the disciples for their indifference and quietly asks the blind man on the roadside, “What do you want me to do for you?” (Mk10:51).Christ shows that God is closeness, compassion and tender love.
    36. Whenever Jesus healed someone, he preferred to do it, not from a distance but in close proximity: “He stretched out his hand and touched him” (Mt8:3).“He touched her hand” (Mt8:15).“He touched their eyes” (Mt9:29).Once he even stopped to cure a deaf man with his own saliva (cf.Mk7:33), as a mother would do, so that people would not think of him as removed from their lives.“The Lord knows the fine science of the caress.In his compassion, God does not love us with words; he comes forth to meet us and, by his closeness, he shows us the depth of his tender love”.[27]
    37. If we find it hard to trust others because we have been hurt by lies, injuries and disappointments, the Lord whispers in our ear: “Take heart, son!” (Mt9:2), “Take heart, daughter!” (Mt9:22).He encourages us to overcome our fear and to realize that, with him at our side, we have nothing to lose.To Peter, in his fright, “Jesus immediately reached out his hand and caught him”, saying, “You of little faith, why did you doubt?” (Mt14:31).Nor should you be afraid.Let him draw near and sit at your side.There may be many people we distrust, but not him.Do not hesitate because of your sins.Keep in mind that many sinners “came and sat with him” (Mt9:10), yet Jesus was scandalized by none of them.It was the religious élite that complained and treated him as “a glutton and a drunkard, a friend of tax collectors and sinners” (Mt11:19).When the Pharisees criticized him for his closeness to people deemed base or sinful, Jesus replied, “I desire mercy, not sacrifice” (Mt9:13).
    38. That same Jesus is now waiting for you to give him the chance to bring light to your life, to raise you up and to fill you with his strength.Before his death, he assured his disciples, “I will not leave you orphaned; I am coming to you.In a little while the world will no longer see me, but you will see me” (Jn14:18-19).Jesus always finds a way to be present in your life, so that you can encounter him.
    JESUS’ GAZE
    39. The Gospel tells us that a rich man came up to Jesus, full of idealism yet lacking in the strength needed to change his life.Jesus then “looked at him” (Mk10:21).Can you imagine that moment, that encounter between his eyes and those of Jesus?If Jesus calls you and summons you for a mission, he first looks at you, plumbs the depths of your heart and, knowing everything about you, fixes his gaze upon you.So it was when, “as he walked by the Sea of Galilee, he saw two brothers… and as he went from there, he saw two other brothers” (Mt4:18, 21).
    40. Many a page of the Gospel illustrates how attentive Jesus was to individuals and above all to their problems and needs.We are told that, “when he saw the crowds, he had compassion for them, because they were harassed and helpless” (Mt9:36).Whenever we feel that everyone ignores us, that no one cares what becomes of us, that we are of no importance to anyone, he remains concerned for us.To Nathanael, standing apart and busy about his own affairs, he could say, “I saw you under the fig tree before Philip called you” (Jn1:48).
    41. Precisely out of concern for us, Jesus knows every one of our good intentions and small acts of charity.The Gospel tells us that once he “saw a poor widow put in two small copper coins” in the Temple treasury (Lk21:2) and immediately brought it to the attention of his disciples.Jesus thus appreciates the good that he sees in us. When the centurion approached him with complete confidence, “Jesus listened to him and was amazed” (Mt8:10).How reassuring it is to know that, even if others are not aware of our good intentions or actions, Jesus sees them and regards them highly.
    42. In his humanity, Jesus learned this from Mary, his mother.Our Lady carefully pondered the things she had experienced; she “treasured them… in her heart” (Lk2:19, 51) and, with Saint Joseph, she taught Jesus from his earliest years to be attentive in this same way.
    JESUS’ WORDS
    43. Although the Scriptures preserve Jesus’ words, ever alive and timely, there are moments when he speaks to us inwardly, calls us and leads us to a better place.That better place is his heart.There he invites us to find fresh strength and peace: “Come to me, all who are weary and are carrying heavy burdens, and I will give you rest” (Mt11:28).In this sense, he could say to his disciples, “Abide in me” (Jn15:4).
    44. Jesus’ words show that his holiness did not exclude deep emotions.On various occasions, he demonstrated a love that was both passionate and compassionate.He could be deeply moved and grieved, even to the point of shedding tears.It is clear that Jesus was not indifferent to the daily cares and concerns of people, such as their weariness or hunger: “I have compassion for this crowd… they have nothing to eat… they will faint on the way, and some of them have come from a great distance” (Mk8:2-3).
    45. The Gospel makes no secret of Jesus’ love for Jerusalem: “As he came near and saw the city, he wept over it” (Lk19:41).He then voiced the deepest desire of his heart: “If you had only recognized on this day the things that make for peace” (Lk19:42).The evangelists, while at times showing him in his power and glory, also portray his profound emotions in the face of death and the grief felt by his friends.Before recounting how Jesus, standing before the tomb of Lazarus, “began to weep” (Jn11:35), the Gospel observes that, “Jesus loved Martha and her sister and Lazarus” (Jn11:5) and that, seeing Mary and those who were with her weeping, “he was greatly disturbed in spirit and deeply moved” (Jn11:33).The Gospel account leaves no doubt that his tears were genuine, the sign of inner turmoil.Nor do the Gospels attempt to conceal Jesus’ anguish over his impending violent death at the hands of those whom he had loved so greatly: he “began to be distressed and agitated” (Mk14:33), even to the point of crying out, “I am deeply grieved, even to death” (Mk14:34).This inner turmoil finds its most powerful expression in his cry from the cross: “My God, my God, why have you forsaken me?” (Mk15:34).
    46. At first glance, all this may smack of pious sentimentalism.Yet it is supremely serious and of decisive importance, and finds its most sublime expression in Christ crucified.The cross is Jesus’ most eloquent word of love.A word that is not shallow, sentimental or merely edifying.It is love, sheer love.That is why Saint Paul, struggling to find the right words to describe his relationship with Christ, could speak of “the Son of God, who loved me and gave himself for me” (Gal2:20).This was Paul’s deepest conviction: the knowledge that he was loved.Christ’s self-offering on the cross became the driving force in Paul’s life, yet it only made sense to him because he knew that something even greater lay behind it: the fact that “he loved me”.At a time when many were seeking salvation, prosperity or security elsewhere, Paul, moved by the Spirit, was able to see farther and to marvel at the greatest and most essential thing of all: “Christ loved me”.
    47. Now, after considering Christ and seeing how his actions and words grant us insight into his heart, let us turn to the Church’s reflection on the holy mystery of the Lord’s Sacred Heart.
    CHAPTER THREE
    THIS IS THE HEART THAT HAS LOVED SO GREATLY
    48. Devotion to the heart of Christ is not the veneration of a single organ apart from the Person of Jesus.What we contemplate and adore is the whole Jesus Christ, the Son of God made man, represented by an image that accentuates his heart.That heart of flesh is seen as the privileged sign of the inmost being of the incarnate Son and his love, both divine and human.More than any other part of his body, the heart of Jesus is “the natural sign and symbol of his boundless love”.[28]
    WORSHIPING CHRIST
    49. It is essential to realize that our relationship to the Person of Jesus Christ is one of friendship and adoration, drawn by the love represented under the image of his heart.We venerate that image, yet our worship is directed solely to the living Christ, in his divinity and his plenary humanity, so that we may be embraced by his human and divine love.
    50. Whatever the image employed, it is clear that the living heart of Christ – not its representation – is the object of our worship, for it is part of his holy risen body, which is inseparable from the Son of God who assumed that body forever.We worship it because it is “the heart of the Person of the Word, to whom it is inseparably united”.[29]Nor do we worship it for its own sake, but because with this heart the incarnate Son is alive, loves us and receives our love in return.Any act of love or worship of his heart is thus “really and truly given to Christ himself”,[30]since it spontaneously refers back to him and is “a symbol and a tender image of the infinite love of Jesus Christ”.[31]
    51. For this reason, it should never be imagined that this devotion may distract or separate us from Jesus and his love.In a natural and direct way, it points us to him and to him alone, who calls us to a precious friendship marked by dialogue, affection, trust and adoration.The Christ we see depicted with a pierced and burning heart is the same Christ who, for love of us, was born in Bethlehem, passed through Galilee healing the sick, embracing sinners and showing mercy.The same Christ who loved us to the very end, opening wide his arms on the cross, who then rose from the dead and now lives among us in glory.
    VENERATING HIS IMAGE
    52. While the image of Christ and his heart is not in itself an object of worship, neither is it simply one among many other possible images.It was not devised at a desk or designed by an artist; it is “no imaginary symbol, but a real symbol which represents the centre, the source from which salvation flowed for all humanity”.[32]
    53. Universal human experience has made the image of the heart something unique.Indeed, throughout history and in different parts of the world, it has become a symbol of personal intimacy, affection, emotional attachment and capacity for love.Transcending all scientific explanations, a hand placed on the heart of a friend expresses special affection: when two persons fall in love and draw close to one another, their hearts beat faster; when we are abandoned or deceived by someone we love, our hearts sink.So too, when we want to say something deeply personal, we often say that we are speaking “from the heart”.The language of poetry reflects the power of these experiences.In the course of history, the heart has taken on unique symbolic value that is more than merely conventional.
    54. It is understandable, then, that the Church has chosen the image of the heart to represent the human and divine love of Jesus Christ and the inmost core of his Person.Yet, while the depiction of a heart afire may be an eloquent symbol of the burning love of Jesus Christ, it is important that this heart not be represented apart from him.In this way, his summons to a personal relationship of encounter and dialogue will become all the more meaningful.[33]The venerable image portraying Christ holding out his loving heart also shows him looking directly at us, inviting us to encounter, dialogue and trust; it shows his strong hands capable of supporting us and his lips that speak personally to each of us.
    55. The heart, too, has the advantage of being immediately recognizable as the profound unifying centre of the body, an expression of the totality of the person, unlike other individual organs.As a part that stands for the whole, we could easily misinterpret it, were we to contemplate it apart from the Lord himself.The image of the heart should lead us to contemplate Christ in all the beauty and richness of his humanity and divinity.
    56. Whatever particular aesthetic qualities we may ascribe to various portrayals of Christ’s heart when we pray before them, it is not the case that “something is sought from them or that blind trust is put in images as once was done by the Gentiles”.Rather, “through these images that we kiss, and before which we kneel and uncover our heads, we are adoring Christ”.[34]
    57. Certain of these representations may indeed strike us as tasteless and not particularly conducive to affection or prayer.Yet this is of little importance, since they are only invitations to prayer, and, to cite an Eastern proverb, we should not limit our gaze to the finger that points us to the moon.Whereas the Eucharist is a real presence to be worshiped, sacred images, albeit blessed, point beyond themselves, inviting us to lift up our hearts and to unite them to the heart of the living Christ.The image we venerate thus serves as a summons to make room for an encounter with Christ, and to worship him in whatever way we wish to picture him.Standing before the image, we stand before Christ, and in his presence, “love pauses, contemplates mystery, and enjoys it in silence”.[35]
    58. At the same time, we must never forget that the image of the heart speaks to us of the flesh and of earthly realities.In this way, it points us to the God who wished to become one of us, a part of our history, and a companion on our earthly journey.A more abstract or stylized form of devotion would not necessarily be more faithful to the Gospel, for in this eloquent and tangible sign we see how God willed to reveal himself and to draw close to us.
    A LOVE THAT IS TANGIBLE
    59. On the other hand, love and the human heart do not always go together, since hatred, indifference and selfishness can also reign in our hearts.Yet we cannot attain our fulfilment as human beings unless we open our hearts to others; only through love do we become fully ourselves.The deepest part of us, created for love, will fulfil God’s plan only if we learn to love.And the heart is the symbol of that love.
    60. The eternal Son of God, in his utter transcendence, chose to love each of us with a human heart.His human emotions became the sacrament of that infinite and endless love.His heart, then, is not merely a symbol for some disembodied spiritual truth.In gazing upon the Lord’s heart, we contemplate a physical reality, his human flesh, which enables him to possess genuine human emotions and feelings, like ourselves, albeit fully transformed by his divine love.Our devotion must ascend to the infinite love of the Person of the Son of God, yet we need to keep in mind that his divine love is inseparable from his human love.The image of his heart of flesh helps us to do precisely this.
    61. Since the heart continues to be seen in the popular mind as the affective centre of each human being, it remains the best means of signifying the divine love of Christ, united forever and inseparably to his wholly human love.Pius XII observed that the Gospel, in referring to the love of Christ’s heart, speaks “not only of divine charity but also human affection”.Indeed, “the heart of Jesus Christ, hypostatically united to the divine Person of the Word, beyond doubt throbbed with love and every other tender affection”.[36]
    62. The Fathers of the Church, opposing those who denied or downplayed the true humanity of Christ, insisted on the concrete and tangible reality of the Lord’s human affections.Saint Basil emphasized that the Lord’s incarnation was not something fanciful, and that “the Lord possessed our natural affections”.[37]Saint John Chrysostom pointed to an example: “Had he not possessed our nature, he would not have experienced sadness from time to time”.[38]Saint Ambrose stated that “in taking a soul, he took on the passions of the soul”.[39]For Saint Augustine, our human affections, which Christ assumed, are now open to the life of grace: “The Lord Jesus assumed these affections of our human weakness, as he did the flesh of our human weakness, not out of necessity, but consciously and freely…lest any who feel grief and sorrow amid the trials of life should think themselves separated from his grace”.[40]Finally, Saint John Damascene viewed the genuine affections shown by Christ in his humanity as proof that he assumed our nature in its entirety in order to redeem and transform it in its entirety: Christ, then, assumed all that is part of human nature, so that all might be sanctified.[41]
    63. Here, we can benefit from the thoughts of a theologian who maintains that, “due to the influence of Greek thought, theology long relegated the body and feelings to the world of the pre-human or sub-human or potentially inhuman; yet what theology did not resolve in theory, spirituality resolved in practice.This, together with popular piety, preserved the relationship with the corporal, psychological and historical reality of Jesus.The Stations of the Cross, devotion to Christ’s wounds, his Precious Blood and his Sacred Heart, and a variety of Eucharist devotions… all bridged the gaps in theology by nourishing our hearts and imagination, our tender love for Christ, our hope and memory, our desires and feelings.Reason and logic took other directions”.[42]
    A THREEFOLD LOVE
    64. Nor do we remain only on the level of the Lord’s human feelings, beautiful and moving as they are.In contemplating Christ’s heart we also see how, in his fine and noble sentiments, his kindness and gentleness and his signs of genuine human affection, the deeper truth of his infinite divine love is revealed.In the words of Benedict XVI, “from the infinite horizon of his love, God wished to enter into the limits of human history and the human condition.He took on a body and a heart.Thus, we can contemplate and encounter the infinite in the finite, the invisible and ineffable mystery in the human heart of Jesus the Nazarene”.[43]
    65. The image of the Lord’s heart speaks to us in fact of a threefold love.First, we contemplate his infinite divine love.Then our thoughts turn to the spiritual dimension of his humanity, in which the heart is “the symbol of that most ardent love which, infused into his soul, enriches his human will”.Finally, “it is a symbol also of his sensible love”.[44]
    66. These three loves are not separate, parallel or disconnected, but together act and find expression in a constant and vital unity.For “by faith, through which we believe that the human and divine nature were united in the Person of Christ, we can see the closest bonds between the tender love of the physical heart of Jesus and the twofold spiritual love, namely human and divine”.[45]
    67. Entering into the heart of Christ, we feel loved by a human heart filled with affections and emotions like our own.Jesus’ human will freely chooses to love us, and that spiritual love is flooded with grace and charity.When we plunge into the depths of his heart, we find ourselves overwhelmed by the immense glory of his infinite love as the eternal Son, which we can no longer separate from his human love.It is precisely in his human love, and not apart from it, that we encounter his divine love: we discover “the infinite in the finite”.[46]
    68. It is the constant and unequivocal teaching of the Church that our worship of Christ’s person is undivided, inseparably embracing both his divine and his human natures.From ancient times, the Church has taught that we are to “adore one and the same Christ, the Son of God and of man, consisting of and in two inseparable and undivided natures”.[47]And we do so “with one act of adoration… inasmuch as the Word became flesh”.[48]Christ is in no way “worshipped in two natures, whereby two acts of worship are introduced”; instead, we venerate “by one act of worship God the Word made flesh, together with his own flesh”.[49]
    69. Saint John of the Cross sought to explain that in mystical experience the infinite love of the risen Christ is not perceived as alien to our lives.The infinite in some way “condescends” to enable us, through the open heart of Christ, to experience an encounter of truly reciprocal love, for “it is indeed credible that a bird of lowly flight can capture the royal eagle of the heights, if this eagle descends with the desire of being captured”.[50]He also explains that the Bridegroom, “beholding that the bride is wounded with love for him, because of her moan he too is wounded with love for her.Among lovers, the wound of one is the wound of both”.[51]John of the Cross regards the image of Christ’s pierced side as an invitation to full union with the Lord.Christ is the wounded stag, wounded when we fail to let ourselves be touched by his love, who descends to the streams of water to quench his thirst and is comforted whenever we turn to him:
    “Return, dove!
    The wounded stag
    is in sight on the hill,
    cooled by the breeze of your flight”.[52]
    TRINITARIAN PERSPECTIVES
    70. Devotion to the heart of Jesus, as a direct contemplation of the Lord that draws us into union with him, is clearly Christological in nature.We see this in the Letter to the Hebrews, which urges us to “run with perseverance the race that is set before us, looking to Jesus” (12:2).At the same time, we need to realize that Jesus speaks of himself as the way to the Father: “I am the way…No one comes to the Father except through me” (Jn14:6).Jesus wants to bring us to the Father.That is why, from the very beginning, the Church’s preaching does not end with Jesus, but with the Father.As source and fullness, the Father is ultimately the one to be glorified.[53]
    71. If we turn, for example, to the Letter to the Ephesians, we can see clearly how our worship is directed to the Father: “I bow my knees before the Father” (3:14).There is “one God and Father of all, who is above all and through all and in all” (4:6).“Give thanks to God the Father at all times and for everything” (5:20).It is the Father “for whom we exist” (1 Cor8:6).In this sense, Saint John Paul II could say that, “the whole of the Christian life is like a greatpilgrimage to the house of the Father”.[54]This too was the experience of Saint Ignatius of Antioch on his path to martyrdom: “In me there is left no spark of desire for mundane things, but only a murmur of living water that whispers within me, ‘Come to the Father’”.[55]
    72. The Father is, before all else, the Father of Jesus Christ: “Blessed be the God and Father of our Lord Jesus Christ”(Eph1:3).He is “the God of our Lord Jesus Christ, the Father of glory” (Eph1:17).When the Son became man, all the hopes and aspirations of his human heart were directed towards the Father.If we consider the way Christ spoke of the Father, we can grasp the love and affection that his human heart felt for him, this complete and constant orientation towards him.[56]Jesus’ life among us was a journey of response to the constant call of his human heart to come to the Father.[57]
    73. We know that the Aramaic word Jesus used to address the Father was “Abba”, an intimate and familiar term that some found disconcerting (cf.Jn5:18).It is how he addressed the Father in expressing his anguish at his impending death: “Abba,Father, for you all things are possible; remove this cup from me; yet, not what I want, but what you want” (Mk14:36).Jesus knew well that he had always been loved by the Father: “You loved me before the foundation of the world” (Jn17:24).In his human heart, he had rejoiced at hearing the Father say to him: “You are my Son, the Beloved; with you I am well pleased” (Mk1:11).
    74. The Fourth Gospel tells us that the eternal Son was always “close to the Father’s heart” (Jn1:18).[58]Saint Irenaeus thus declares that “the Son of God was with the Father from the beginning”.[59]Origen, for his part, maintains that the Son perseveres “in uninterrupted contemplation of the depths of the Father”.[60]When the Son took flesh, he spent entire nights conversing with his beloved Father on the mountaintop (cf.Lk6:12).He told us, “I must be in my Father’s house” (Lk2:49).We see too how he expressed his praise: “Jesus rejoiced in the Holy Spirit and said, ‘I thank you, Father, Lord of heaven and earth’ (Lk10:21).His last words, full of trust, were, “Father, into your hands I commend my spirit” (Lk23:46).
    75. Let us now turn to the Holy Spirit, whose fire fills the heart of Christ.As Saint John Paul II once said, Christ’s heart is “the Holy Spirit’s masterpiece”.[61]This is more than simply a past event, for even now “the heart of Christ is alive with the action of the Holy Spirit, to whom Jesus attributed the inspiration of his mission (cf.Lk4:18;Is61:1) and whose sending he had promised at the Last Supper.It is the Spirit who enables us to grasp the richness of the sign of Christ’s pierced side, from which the Church has sprung (cf.Sacrosanctum Concilium, 5)”.[62]In a word, “only the Holy Spirit can open up before us the fullness of the ‘inner man’, which is found in the heart of Christ.He alone can cause our human hearts to draw strength from that fullness, step by step”.[63]
    76. If we seek to delve more deeply into the mysterious working of the Spirit, we learn that he groans within us, saying “Abba!”Indeed,“the proof that you are children is that God has sent the Spirit of his Son into our hearts, crying, ‘Abba! Father!’” (Gal4:6).For “the Spirit bears witness with our spirit that we are children of God” (Rom8:16).The Holy Spirit at work in Christ’s human heart draws him unceasingly to the Father.When the Spirit unites us to the sentiments of Christ through grace, he makes us sharers in the Son’s relationship to the Father, whereby we receive “a spirit of adoption through which we cry out, ‘Abba! Father!’” (Rom8:15).
    77.Our relationship with the heart of Christ is thus changed, thanks to the prompting of the Spirit who guides us to the Father, the source of life and the ultimate wellspring of grace.Christ does not expect us simply to remain in him.His love is “the revelation of the Father’s mercy”,[64]and his desire is that, impelled by the Spirit welling up from his heart, we should ascend to the Father “with him and in him”.We give glory to the Father “through” Christ,[65]“with” Christ,[66]and “in” Christ.[67]Saint John Paul II taught that, “the Saviour’s heart invites us to return to the Father’s love, which is the source of every authentic love”.[68]This is precisely what the Holy Spirit, who comes to us through the heart of Christ, seeks to nurture in our hearts.For this reason, the liturgy, through the enlivening work of the Spirit, always addresses the Father from the risen heart of Christ.
    RECENT TEACHINGS OF THE MAGISTERIUM
    78.In numerous ways, Christ’s heart has always been present in the history of Christian spirituality.In the Scriptures and in the early centuries of the Church’s life, it appeared under the image of the Lord’s wounded side, as a fountain of grace and a summons to a deep and loving encounter.In this same guise, it has reappeared in the writings of numerous saints, past and present.In recent centuries, this spirituality has gradually taken on the specific form of devotion to the Sacred Heart of Jesus.
    79. A number of my Predecessors have spoken in various ways about the heart of Christ and exhorted us to unite ourselves to it.At the end of the nineteenth century, Leo XIII encouraged us to consecrate ourselves to the Sacred Heart, thus uniting our call to union with Christ and our wonder before the magnificence of his infinite love.[69]Some thirty years later, Pius XI presented this devotion as a “summa” of the experience of Christian faith.[70]Pius XII went on to declare that adoration of the Sacred Heart expresses in an outstanding way, as a sublime synthesis, the worship we owe to Jesus Christ.[71]
    80. More recently, Saint John Paul II presented the growth of this devotion in recent centuries as a response to the rise of rigorist and disembodied forms of spirituality that neglected the richness of the Lord’s mercy.At the same time, he saw it as a timely summons to resist attempts to create a world that leaves no room for God.“Devotion to the Sacred Heart, as it developed in Europe two centuries ago, under the impulse of the mystical experiences of Saint Margaret Mary Alacoque, was aresponse to Jansenist rigor, which ended up disregarding God’s infinite mercy…The men and women of the third millennium need the heart of Christin order to know God and to know themselves; they need it to build the civilization of love”.[72]
    81. Benedict XVI asked us to recognize in the heart of Christ an intimate and daily presence in our lives: “Every person needs a ‘centre’ for his or her own life, a source of truth and goodness to draw upon in the events, situations and struggles of daily existence.All of us, when we pause in silence, need to feel not only the beating of our own heart, but deeper still, the beating of a trustworthy presence, perceptible with faith’s senses and yet much more real: the presence of Christ, the heart of the world”.[73]
    FURTHER REFLECTIONS AND RELEVANCE FOR OUR TIMES
    82. The expressive and symbolic image of Christ’s heart is not the only means granted us by the Holy Spirit for encountering the love of Christ, yet it is, as we have seen, an especially privileged one.Even so, it constantly needs to be enriched, deepened and renewed through meditation, the reading of the Gospel and growth in spiritual maturity.Pius XII made it clear that the Church does not claim that, “we must contemplate and adore in the heart of Jesus a ‘formal’ image, that is, a perfect and absolute sign of his divine love, for the essence of this love can in no way be adequately expressed by any created image whatsoever”.[74]
    83. Devotion to Christ’s heart is essential for our Christian life to the extent that it expresses our openness in faith and adoration to the mystery of the Lord’s divine and human love.In this sense, we can once more affirm that the Sacred Heart is a synthesis of the Gospel.[75]We need to remember that the visions or mystical showings related by certain saints who passionately encouraged devotion to Christ’s heart are not something that the faithful are obliged to believe as if they were the word of God.[76]Nonetheless, they are rich sources of encouragement and can prove greatly beneficial, even if no one need feel forced to follow them should they not prove helpful on his or her own spiritual journey.At the same time, however, we should be mindful that, as Pius XII pointed out, this devotion cannot be said “to owe its origin to private revelations”.[77]
    84. The promotion of Eucharistic communion on the first Friday of each month, for example, sent a powerful message at a time when many people had stopped receiving communion because they were no longer confident of God’s mercy and forgiveness and regarded communion as a kind of reward for the perfect.In the context of Jansenism, the spread of this practice proved immensely beneficial, since it led to a clearer realization that in the Eucharist the merciful and ever-present love of the heart of Christ invites us to union with him.It can also be said that this practice can prove similarly beneficial in our own time, for a different reason.Amid the frenetic pace of today’s world and our obsession with free time, consumption and diversion, cell phones and social media, we forget to nourish our lives with the strength of the Eucharist.
    85. While no one should feel obliged to spend an hour in adoration each Thursday, the practice ought surely to be recommended.When we carry it out with devotion, in union with many of our brothers and sisters and discover in the Eucharist the immense love of the heart of Christ, we “adore, together with the Church, the sign and manifestation of the divine love that went so far as to love, through the heart of the incarnate Word, the human race”.[78]
    86. Many Jansenists found this difficult to comprehend, for they looked askance on all that was human, affective and corporeal, and so viewed this devotion as distancing us from pure worship of the Most High God.Pius XII described as “false mysticism”[79]the elitist attitude of those groups that saw God as so sublime, separate and distant that they regarded affective expressions of popular piety as dangerous and in need of ecclesiastical oversight.
    87. It could be argued that today, in place of Jansenism, we find ourselves before a powerful wave of secularization that seeks to build a world free of God.In our societies, we are also seeing a proliferation of varied forms of religiosity that have nothing to do with a personal relationship with the God of love, but are new manifestations of a disembodied spirituality.I must warn that within the Church too, a baneful Jansenist dualism has re-emerged in new forms.This has gained renewed strength in recent decades, but it is a recrudescence of that Gnosticism which proved so great a spiritual threat in the early centuries of Christianity because it refused to acknowledge the reality of “the salvation of the flesh”.For this reason, I turn my gaze to the heart of Christ and I invite all of us to renew our devotion to it.I hope this will also appeal to today’s sensitivities and thus help us to confront the dualisms, old and new, to which this devotion offers an effective response.
    88. I would add that the heart of Christ also frees us from another kind of dualism found in communities and pastors excessively caught up in external activities, structural reforms that have little to do with the Gospel, obsessive reorganization plans, worldly projects, secular ways of thinking and mandatory programmes.The result is often a Christianity stripped of the tender consolations of faith, the joy of serving others, the fervour of personal commitment to mission, the beauty of knowing Christ and the profound gratitude born of the friendship he offers and the ultimate meaning he gives to our lives.This too is the expression of an illusory and disembodied otherworldliness.
    89. Once we succumb to these attitudes, so widespread in our day, we tend to lose all desire to be cured of them.This leads me to propose to the whole Church renewed reflection on the love of Christ represented in his Sacred Heart.For there we find the whole Gospel, a synthesis of the truths of our faith, all that we adore and seek in faith, all that responds to our deepest needs.
    90. As we contemplate the heart of Christ, the incarnate synthesis of the Gospel, we can, following the example of Saint Therese of the Child Jesus, “place heartfelt trust not in ourselves but in the infinite mercy of a God who loves us unconditionally and has already given us everything in the cross of Jesus Christ”.[80]Therese was able to do this because she had discovered in the heart of Christ that God is love: “To me he has granted his infinite mercy, and through it I contemplate and adore the other divine perfections”.[81]That is why a popular prayer, directed like an arrow towards the heart of Christ, says simply: “Jesus, I trust in you”.[82]No other words are needed.
    91. In the following chapters, we will emphasize two essential aspects that contemporary devotion to the Sacred Heart needs to combine, so that it can continue to nourish us and bring us closer to the Gospel: personal spiritual experience and communal missionary commitment.
    CHAPTER FOUR
    A LOVE THAT GIVES ITSELF AS DRINK
    92. Let us now return to the Scriptures, the inspired texts where, above all, we encounter God’s revelation.There, and in the Church’s living Tradition, we hear what the Lord has wished to tell us in the course of history.By reading several texts from the Old and the New Testaments, we will gain insight into the word of God that has guided the great spiritual pilgrimage of his people down the ages.
    A GOD WHO THIRSTS FOR LOVE
    93. The Bible shows that the people that journeyed through the desert and yearned for freedom received the promise of an abundance of life-giving water: “With joy you will draw water from the wells of salvation” (Is12:3).The messianic prophecies gradually coalesced around the imagery of purifying water: “I will sprinkle clean water upon you, and you shall be clean… a new spirit I will put within you” (Ezek36:25-26).This water would bestow on God’s people the fullness of life, like a fountain flowing from the Temple and bringing a wealth of life and salvation in its wake.“I saw on the bank of the river a great many trees on the one side and on the other… and wherever that river goes, every living creature will live… and when that river enters the sea, its waters will become fresh; everything will live where the river goes” (Ezek47:7-9).
    94. The Jewish festival of Booths (Sukkot), which recalls the forty-year sojourn of Israel in the desert, gradually adopted the symbolism of water as a central element.It included a rite of offering water each morning, which became most solemn on the final day of the festival, when a great procession took place towards the Temple, the altar was circled seven times and the water was offered to God amid loud cries of joy.[83]
    95. The dawn of the messianic era was described as a fountain springing up for the people: “I will pour out a spirit of compassion and supplication on the house of David and the inhabitants of Jerusalem, and they shall look on him whom they have pierced…On that day, a fountain shall be opened for the house of David and the inhabitants of Jerusalem, to cleanse them from sin and impurity” (Zech12:10; 13:1).
    96. One who is pierced, a flowing fountain, the outpouring of a spirit of compassion and supplication: the first Christians inevitably considered these promises fulfilled in the pierced side of Christ, the wellspring of new life.In the Gospel of John, we contemplate that fulfilment.From Jesus’ wounded side, the water of the Spirit poured forth: “One of the soldiers pierced his side with a spear, and at once blood and water flowed out” (Jn19:34).The evangelist then recalls the prophecy that had spoken of a fountain opened in Jerusalem and the pierced one (Jn19:37; cf.Zech12:10).The open fountain is the wounded side of Christ.
    97. Earlier, John’s Gospel had spoken of this event, when on “the last day of the festival” (Jn7:37), Jesus cried out to the people celebrating the great procession: “Let anyone who is thirsty come to me and drink… out of his heart shall flow rivers of living water” (Jn7:37-38).For this to be accomplished, however, it was necessary for Jesus’ “hour” to come, for he “was not yet glorified” (Jn7:39).That fulfilment was to come on the cross, in the blood and water that flowed from the Lord’s side.
    98. The Book of Revelation takes up the prophecies of the pierced one and the fountain: “every eye will see him, even those who pierced him” (Rev1:7); “Let everyone who is thirsty come; let anyone who wishes take the water of life as a gift” (Rev22:17).
    99. The pierced side of Jesus is the source of the love that God had shown for his people in countless ways.Let us now recall some of his words:
    “Because you are precious in my sight and honoured, I love you” (Is43:4).
    “Can a woman forget her nursing child, or show no compassion for the child of her womb?Even if these may forget, yet I will not forget you.See, I have inscribed you on the palms of my hands” (Is49:15-16).
    “For the mountains may depart, and the hills be removed, but my steadfast love shall not depart from you, and my covenant of peace shall not be removed” (Is54:10).
    “I have loved you with an everlasting love; therefore I have continued my faithfulness to you” (Jer31:3).
    “The Lord, your God, is in your midst, a warrior who gives you victory; he will rejoice over you with gladness, he will renew you in his love; he will exult over you with loud singing” (Zeph3:17).
    100.The prophet Hosea goes so far as to speak of the heart of God, who “led them with cords of human kindness, with bands of love” (Hos11:4).When that love was spurned, the Lord could say, “My heart is stirred within me; my compassion grows warm and tender (Hos11:8).God’s merciful love always triumphs (cf.Hos11:9), and it was to find its most sublime expression in Christ, his definitive Word of love.
    101.The pierced heart of Christ embodies all God’s declarations of love present in the Scriptures.That love is no mere matter of words; rather, the open side of his Son is a source of life for those whom he loves, the fount that quenches the thirst of his people.As Saint John Paul II pointed out, “the essential elements of devotion [to the Sacred Heart] belong in a permanent fashion to the spirituality of the Church throughout her history; for since the beginning, the Church has looked to the heart of Christ pierced on the Cross”.[84]
    ECHOES OF THE WORD IN HISTORY
    102.Let us consider some of the ways that, in the history of the Christian faith, these prophecies were understood to have been fulfilled.Various Fathers of the Church, especially those in Asia Minor, spoke of the wounded side of Jesus as the source of the water of the Holy Spirit: the word, its grace and the sacraments that communicate it.The courage of the martyrs is born of “the heavenly fount of living waters flowing from the side of Christ”[85]or, in the version of Rufinus, “the heavenly and eternal streams that flow from the heart of Christ”.[86]We believers, reborn in the Spirit, emerge from the cleft in the rock; “we have come forth from the heart of Christ”.[87]His wounded side, understood as his heart, filled with the Holy Spirit, comes to us as a flood of living water. “The fount of the Spirit is entirely in Christ”.[88]Yet the Spirit whom we have received does not distance us from the risen Lord, but fills us with his presence, for by drinking of the Spirit we drink of the same Christ.In the words of Saint Ambrose: “Drink of Christ, for he is the rock that pours forth a flood of water.Drink of Christ, for he is the source of life.Drink of Christ, for he is the river whose streams gladden the city of God.Drink of Christ, for he is our peace.Drink of Christ, for from his side flows living water”.[89]
    103.Saint Augustine opened the way to devotion to the Sacred Heart as the locus of our personal encounter with the Lord.For Augustine, Christ’s wounded side is not only the source of grace and the sacraments, but also the symbol of our intimate union with Christ, the setting of an encounter of love.There we find the source of the most precious wisdom of all, which is knowledge of him.In effect, Augustine writes that John, the beloved disciple, reclining on Jesus’ bosom at the Last Supper, drew near to the secret place of wisdom.[90]Here we have no merely intellectual contemplation of an abstract theological truth.As Saint Jerome explains, a person capable of contemplation “does not delight in the beauty of that stream of water, but drinks of the living water flowing from the side of the Lord”.[91]
    104.Saint Bernard takes up the symbolism of the pierced side of the Lord and understands it explicitly as a revelation and outpouring of all of the love of his heart.Through that wound, Christ opens his heart to us and enables us to appropriate the boundless mystery of his love and mercy: “I take from the bowels of the Lord what is lacking to me, for his bowels overflow with mercy through the holes through which they stream.Those who crucified him pierced his hands and feet, they pierced his side with a lance.And through those holes I can taste wild honey and oil from the rocks of flint, that is, I can taste and see that the Lord is good…A lance passed through his soul even to the region of his heart.No longer is he unable to take pity on my weakness.The wounds inflicted on his body have disclosed to us the secrets of his heart; they enable us to contemplate the great mystery of his compassion”.[92]
    105.This theme reappears especially in William of Saint-Thierry, who invites us to enter into the heart of Jesus, who feeds us from his own breast.[93]This is not surprising if we recall that for William, “the art of arts is the art of love…Love is awakened by the Creator of nature, and is a power of the soul that leads it, as if by its natural gravity, to its proper place and end”.[94]That proper place, where love reigns in fullness, is the heart of Christ: “Lord, where do you lead those whom you embrace and clasp to your heart?Your heart, Jesus, is the sweet manna of your divinity that you hold within the golden jar of your soul (cf.Heb9:4), and that surpasses all knowledge.Happy those who, having plunged into those depths, have been hidden by you in the recess of your heart”.[95]
    106.Saint Bonaventure unites these two spiritual currents.He presents the heart of Christ as the source of the sacraments and of grace, and urges that our contemplation of that heart become a relationship between friends, a personal encounter of love.
    107.Bonaventure makes us appreciate first the beauty of the grace and the sacraments flowing from the fountain of life that is the wounded side of the Lord.“In order that from the side of Christ sleeping on the cross, the Church might be formed and the Scripture fulfilled that says: ‘They shall look upon him whom they pierced’, one of the soldiers struck him with a lance and opened his side.This was permitted by divine Providence so that, in the blood and water flowing from that wound, the price of our salvation might flow from the hidden wellspring of his heart, enabling the Church’s sacraments to confer the life of grace and thus to be, for those who live in Christ, like a cup filled from the living fount springing up to life eternal”.[96]
    108.Bonaventure then asks us to take another step, in order that our access to grace not be seen as a kind of magic or neo-platonic emanation, but rather as a direct relationship with Christ, a dwelling in his heart, so that whoever drinks from that source becomes a friend of Christ, a loving heart.“Rise up, then, O soul who are a friend of Christ, and be the dove that nests in the cleft in the rock; be the sparrow that finds a home and constantly watches over it; be the turtledove that hides the offspring of its chaste love in that most holy cleft”.[97]
    THE SPREAD OF DEVOTION TO THE HEART OF CHRIST
    109.Gradually, the wounded side of Christ, as the abode of his love and the wellspring of the life of grace, began to be associated with his heart, especially in monastic life.We know that in the course of history, devotion to the heart of Christ was not always expressed in the same way, and that its modern developments, related to a variety of spiritual experiences, cannot be directly derived from the mediaeval forms, much less the biblical forms in which we glimpse the seeds of that devotion.This notwithstanding, the Church today rejects nothing of the good that the Holy Spirit has bestowed on us down the centuries, for she knows that it will always be possible to discern a clearer and deeper meaning in certain aspects of that devotion, and to gain new insights over the course of time.
    110.A number of holy women, in recounting their experiences of encounter with Christ, have spoken of resting in the heart of the Lord as the source of life and interior peace.This was the case with Saints Lutgarde and Mechtilde of Hackeborn, Saint Angela of Foligno and Dame Julian of Norwich, to mention only a few.Saint Gertrude of Helfta, a Cistercian nun, tells of a time in prayer when she reclined her head on the heart of Christ and heard its beating.In a dialogue with Saint John the Evangelist, she asked him why he had not described in his Gospel what he experienced when he did the same.Gertrude concludes that “the sweet sound of those heartbeats has been reserved for modern times, so that, hearing them, our aging and lukewarm world may be renewed in the love of God”.[98]Might we think that this is indeed a message for our own times, a summons to realize how our world has indeed “grown old”, and needs to perceive anew the message of Christ’s love?Saint Gertrude and Saint Mechtilde have been considered among “the most intimate confidants of the Sacred Heart”.[99]
    111.The Carthusians, encouraged above all by Ludolph of Saxony, found in devotion to the Sacred Heart a means of growth in affection and closeness to Christ.All who enter through the wound of his heart are inflamed with love.Saint Catherine of Siena wrote that the Lord’s sufferings are impossible for us to comprehend, but the open heart of Christ enables us to have a lively personal encounter with his boundless love.“I wished to reveal to you the secret of my heart, allowing you to see it open, so that you can understand that I have loved you so much more than I could have proved to you by the suffering that I once endured”.[100]
    112.Devotion to the heart of Christ slowly passed beyond the walls of the monasteries to enrich the spirituality of saintly teachers, preachers and founders of religious congregations, who then spread it to the farthest reaches of the earth.[101]
    113.Particularly significant was the initiative taken by Saint John Eudes, who, “after preaching with his confrères a fervent mission in Rennes, convinced the bishop of that diocese to approve the celebration of the feast of the Adorable Heart of our Lord Jesus Christ.This was the first time that such a feast was officially authorized in the Church.Following this, between the years 1670 and 1671, the bishops of Coutances, Evreux, Bayeux, Lisieux and Rouen authorized the celebration of the feast for their respective dioceses”.[102]
    SAINT FRANCIS DE SALES
    114.In modern times, mention should be made of the important contribution of Saint Francis de Sales.Francis frequently contemplated Christ’s open heart, which invites us to dwell therein, in a personal relationship of love that sheds light on the mysteries of his life.In his writings, the saintly Doctor of the Church opposes a rigorous morality and a legalistic piety by presenting the heart of Jesus as a summons to complete trust in the mysterious working of his grace.We see this expressed in his letter to Saint Jane Francis de Chantal: “I am certain that we will remain no longer in ourselves… but dwell forever in the Lord’s wounded side, for apart from him not only can we do nothing, but even if we were able, we would lack the desire to do anything”.[103]
    115.For Francis de Sales, true devotion had nothing to do with superstition or perfunctory piety, since it entails a personal relationship in which each of us feels uniquely and individually known and loved by Christ.“This most adorable and lovable heart of our Master, burning with the love which he professes to us, [is] a heart on which all our names are written…Surely it is a source of profound consolation to know that we are loved so deeply by our Lord, who constantly carries us in his heart”.[104]With the image of our names written on the heart of Christ, Saint Francis sought to express the extent to which Christ’s love for each of us is not something abstract and generic, but utterly personal, enabling each believer to feel known and respected for who he or she is.“How lovely is this heaven, in which the Lord is its sun and his breast a fountain of love from which the blessed drink to their heart’s content!Each of us can look therein and see our name carved in letters of love, which true love alone can read and true love has written.Dear God!And what too, beloved daughter, of our loved ones?Surely they will be there too; for even if our hearts have no love, they nonetheless possess a desire for love and the beginnings of love”.[105]
    116.Francis saw this experience of Christ’s love as essential to the spiritual life, indeed one of the great truths of faith: “Yes, my beloved daughter, he thinks of you and not only, but even the smallest hair of your head: this is an article of faith and in no way must it be doubted”.[106]It follows that the believer becomes capable of complete abandonment in the heart of Christ, in which he or she finds repose, comfort and strength: “Oh God!What happiness to be thus embraced and to recline in the bosom of the Saviour.Remain thus, beloved daughter, and like another little one, Saint John, while others are tasting different kinds of food at the table of the Lord, lay your head, your soul and your spirit, in a gesture of utter trust, on the loving bosom of this dear Lord”.[107]“I hope that you are resting in the cleft of the turtledove and in the pierced side of our beloved Saviour…How good is this Lord, my beloved daughter!How loving is his Heart!Let us remain here, in this holy abode”.[108]
    117.At the same time, faithful to his teaching on the sanctification of ordinary life, Francis proposes that this experience take place in the midst of the activities, tasks and obligations of our daily existence.“You asked me how souls that are attracted in prayer to this holy simplicity, to this perfect abandonment in God, should conduct themselves in all their actions?I would reply that, not only in prayer, but also in the conduct of everyday life they should advance always in the spirit of simplicity, abandoning and completely surrendering their soul, their actions and their accomplishments to God’s will.And to do so with a love marked by perfect and absolute trust, abandoning themselves to grace and to the care of the eternal love that divine Providence feels for them”.[109]
    118.For this reason, when looking for a symbol to convey his vision of spiritual life, Francis de Sales concluded: “I have thought, dear Mother, if you agree, that we should take as our emblem a single heart pierced by two arrows, the whole enclosed in a crown of thorns”.[110]
    A NEW DECLARATION OF LOVE
    119.Under the salutary influence of this Salesian spirituality, the events of Paray-le-Monial took place at the end of the seventeenth century.Saint Margaret Mary Alacoque reported a remarkable series of apparitions of Christ between the end of December 1673 and June of 1675.Fundamental to these was a declaration of love that stood out in the first apparition.Jesus said: “My divine Heart is so inflamed with love for men, and for you in particular, that, no longer able to contain in itself the flames of its ardent charity, it must pour them out through you and be manifested to them, in order to enrich them with its precious treasures which I now reveal to you”.[111]
    120.Saint Margaret Mary’s account is powerful and deeply moving: “He revealed to me the wonders of his love and the inexplicable secrets of his Sacred Heart which he had hitherto kept hidden from me, until he opened it to me for the first time, in such a striking and sensible manner that he left me no room for doubt”.[112]In subsequent appearances, that consoling message was reiterated: “He revealed to me the ineffable wonders of his pure love and to what extremes it had led him to love mankind”.[113]
    121.This powerful realization of the love of Jesus Christ bequeathed to us by Saint Margaret Mary can spur us to greater union with him.We need not feel obliged to accept or appropriate every detail of her spiritual experience, in which, as often happens, God’s intervention combines with human elements related to the individual’s own desires, concerns and interior images.[114]Such experiences must always be interpreted in the light of the Gospel and the rich spiritual tradition of the Church, even as we acknowledge the good they accomplish in many of our brothers and sisters.In this way, we can recognize the gifts of the Holy Spirit present in those experiences of faith and love.More important than any individual detail is the core of the message handed on to us, which can be summed up in the words heard by Saint Margaret Mary: “This is the heart that so loved human beings that it has spared nothing, even to emptying and consuming itself in order to show them its love”.[115]
    122.This apparition, then, invites us to grow in our encounter with Christ, putting our trust completely in his love, until we attain full and definitive union with him.“It is necessary that the divine heart of Jesus in some way replace our own; that he alone live and work in us and for us; that his will… work absolutely and without any resistance on our part; and finally that its affections, thoughts and desires take the place of our own, especially his love, so that he is loved in himself and for our sakes.And so, this lovable heart being our all in all, we can say with Saint Paul that we no longer live our own lives, but it is he who lives within us”.[116]
    123.In the first message that Saint Margaret Mary received, this invitation was expressed in vivid, fervent and loving terms.“He asked for my heart, which I asked him to take, which he did and then placed myself in his own adorable heart, from which he made me see mine like a little atom consumed in the fiery furnace of his own”.[117]
    124.At another point, we see that the one who gives himself to us is the risen and glorified Christ, full of life and light.If indeed, at different times, he spoke of the suffering that he endured for our sake and of the ingratitude with which it is met, what we see here are not so much his blood and painful wounds, but rather the light and fire of the Lord of life.The wounds of the passion have not disappeared, but are now transfigured.Here we see the paschal mystery in all its splendour: “Once, when the Blessed Sacrament was exposed, Jesus appeared, resplendent in glory, with his five wounds that appeared as so many suns blazing forth from his sacred humanity, but above all from his adorable breast, which seemed a fiery furnace.Opening his robe, he revealed his most loving and lovable heart, which was the living source of those flames.Then it was that I discovered the ineffable wonders of his pure love, with which he loves men to the utmost, yet receives from them only ingratitude and indifference”.[118]
    SAINT CLAUDE DE LA COLOMBIÈRE
    125.When Saint Claude de La Colombière learned of the experiences of Saint Margaret Mary, he immediately undertook her defence and began to spread word of the apparitions.Saint Claude played a special role in developing the understanding of devotion to the Sacred Heart and its meaning in the light of the Gospel.
    126.Some of the language of Saint Margaret Mary, if poorly understood, might suggest undue trust in our personal sacrifices and offerings.Saint Claude insists that contemplation of the heart of Jesus, when authentic, does not provoke self-complacency or a vain confidence in our own experiences or human efforts, but rather an ineffable abandonment in Christ that fills our life with peace, security and decision.He expressed this absolute confidence most eloquently in a celebrated prayer:
    “My God, I am so convinced that you keep watch over those who hope in you, and that we can want for nothing when we look for all in you, that I am resolved in the future to live free from every care and to turn all my anxieties over to you…I shall never lose my hope.I shall keep it to the last moment of my life; and at that moment all the demons in hell will strive to tear it from me…Others may look for happiness from their wealth or their talents; others may rest on the innocence of their life, or the severity of their penance, or the amount of their alms, or the fervour of their prayers.As for me, Lord, all my confidence is confidence itself.This confidence has never deceived anyone…I am sure, therefore, that I shall be eternally happy, since I firmly hope to be, and because it is from you, O God, that I hope for it”.[119]
    127.In a note of January 1677, after mentioning the assurance he felt regarding his mission, Claude continued: “I have come to know that God wanted me to serve him by obtaining the fulfilment of his desires regarding the devotion that he suggested to a person to whom he communicates in confidence, and for whose sake he has desired to make use of my weakness.I have already used it to help several persons”.[120]
    128.It should be recognized that the spirituality of Blessed Claude de La Colombière resulted in a fine synthesis of the profound and moving spiritual experience of Saint Margaret Mary and the vivid and concrete form of contemplation found in the Spiritual Exercises of Saint Ignatius Loyola.At the beginning of the third week of the Exercises, Claude reflected:“Two things have moved me in a striking way.First, the attitude of Christ towards those who sought to arrest him.His heart is full of bitter sorrow; every violent passion is unleashed against him and all nature is in turmoil, yet amid all this confusion, all these temptations, his heart remains firmly directed to God.He does not hesitate to take the part that virtue and the highest virtue suggested to him.Second, the attitude of that same heart towards Judas who betrayed him, the apostles who cravenly abandoned him, the priests and the others responsible for the persecution he suffered; none of these things was able to arouse in him the slightest sentiment of hatred or indignation.I present myself anew to this heart free of anger, free of bitterness, filled instead with genuine compassion towards its enemies”.[121]
    SAINT CHARLES DE FOUCAULD AND SAINT THERESE OF THE CHILD JESUS
    129.Saint Charles de Foucauld and Saint Therese of the Child Jesus, without intending to, reshaped certain aspects of devotion to the heart of Christ and thus helped us understand it in an even more evangelical spirit.Let us now examine how this devotion found expression in their lives.In the following chapter, we will return to them, in order to illustrate the distinctively missionary dimension that each of them brought to the devotion.
    Iesus Caritas
    130.In Louye, Charles de Foucauld was accustomed to visit the Blessed Sacrament with his cousin, Marie de Bondy.One day she showed him an image of the Sacred Heart.[122]His cousin played a fundamental role in Charles’s conversion, as he himself acknowledged: “Since God has made you the first instrument of his mercies towards me, from you everything else began.Had you not converted me, brought me to Jesus and taught me little by little, letter by letter, all that is holy and good, where would I be today?”[123]What Marie awakened in him was an intense awareness of the love of Jesus.That was the essential thing, and centred on devotion to the heart of Jesus, in which he encountered unbounded mercy: “Let us trust in the infinite mercy of the one whose heart you led me to know”.[124]
    131.Later, his spiritual director, Father Henri Huvelin, helped Charles to deepen his understanding of the inestimable mystery of “this blessed heart of which you spoke to me so often”.[125]On 6 June 1889, Charles consecrated himself to the Sacred Heart, in which he found a love without limits.He told Christ, “You have bestowed on me so many benefits, that it would appear ingratitude towards your heart not to believe that it is disposed to bestow on me every good, however great, and that your love and your generosity are boundless”.[126]He was to become a hermit “under the name of the heart of Jesus”.[127]
    132.On 17 May 1906, the same day in which Brother Charles, alone, could no longer celebrate Mass, he wrote of his promise “to let the heart of Jesus live in me, so that it is no longer I who live, but the heart of Jesus that lives in me, as he lived in Nazareth”.[128]His friendship with Jesus, heart to heart, was anything but a privatized piety.It inspired the austere life he led in Nazareth, born of a desire to imitate Christ and to be conformed to him.His loving devotion to the heart of Jesus had a concrete effect on his style of life, and his Nazareth was nourished by his personal relationship with the heart of Christ.
    Saint Therese of the Child Jesus
    133.Like Saint Charles de Foucauld, Saint Therese of the Child Jesus was influenced by the great renewal of devotion that swept nineteenth-century France.Father Almire Pichon, the spiritual director of her family, was seen as a devoted apostle of the Sacred Heart.One of her sisters took as her name in religion “Sister Marie of the Sacred Heart”, and the monastery that Therese entered was dedicated to the Sacred Heart.Her devotion nonetheless took on certain distinctive traits with regard to the customary piety of that age.
    134.When Therese was fifteen, she could speak of Jesus as the one “whose heart beats in unison with my own”.[129]Two years later, speaking of the image of Christ’s heart crowned with thorns, she wrote in a letter: “You know that I myself do not see the Sacred Heart as everyone else.I think that the Heart of my Spouse is mine alone, just as mine is his alone, and I speak to him then in the solitude of this delightful heart to heart, while waiting to contemplate him one day face to face”.[130]
    135.In one of her poems, Therese voiced the meaning of her devotion, which had to do more with friendship and assurance than with trust in her sacrifices:
    “I need a heart burning with tenderness,
    Who will be my support forever,
    Who loves everything in me, even my weakness…
    And who never leaves me day or night…
    I must have a God who takes on my nature,
    And becomes my brother and is able to suffer! …
    Ah! I know well, all our righteousness
    Is worthless in your sight…
    So I, for my purgatory,
    Choose your burning love, O heart of my God!”[131]
    136.Perhaps the most important text for understanding the devotion of Therese to the heart of Christ is a letter that she wrote three months before her death to her friend Maurice Bellière.“When I see Mary Magdalene walking up before the many guests, washing with her tears the feet of her adored Master, whom she is touching for the first time, I feel that her hearthas understood the abysses of love and mercy of the heart of Jesus, and, sinner though she is, this heart of love was disposed not only to pardon her but to lavish on her the blessings of his divine intimacy, to lift her to the highest summits of contemplation.Ah! dear little Brother, ever since I have been given the grace to understand also the love of the heart of Jesus, I admit that it has expelled all fear from my heart.The remembrance of my faults humbles me, draws me never to depend on my strength which is only weakness, but this remembrance speaks to me of mercy and love even more”.[132]
    137.Those moralizers who want to keep a tight rein on God’s mercy and grace might claim that Therese could say this because she was a saint, but a simple person could not say the same.In that way, they excise from the spirituality of Saint Therese its wonderful originality, which reflects the heart of the Gospel.Sadly, in certain Christian circles we often encounter this attempt to fit the Holy Spirit into a certain preconceived pattern in a way that enables them to keep everything under their supervision.Yet this astute Doctor of the Church reduces them to silence and directly contradicts their reductive view in these clear words: “If I had committed all possible crimes, I would always have the same confidence; I feel that this whole multitude of offenses would be like a drop of water thrown into a fiery furnace”.[133]
    138.To Sister Marie, who praised her generous love of God, prepared even to embrace martyrdom, Therese responded at length in a letter that is one of the great milestones in the history of spirituality.This page ought to be read a thousand times over for its depth, clarity and beauty.There, Therese helps her sister, “Marie of the Sacred Heart”, to avoid focusing this devotion on suffering, since some had presented reparation primarily in terms of accumulating sacrifices and good works.Therese, for her part, presents confidence as the greatest and best offering, pleasing to the heart of Christ: “My desires of martyrdom are nothing; they are not what give me the unlimited confidence that I feel in my heart.They are, to tell the truth, the spiritual riches that render one unjust, when one rests in them with complacence and one believes that they are something great…what pleases [Jesus] is that he sees me loving my littleness and my poverty, the blind hope that I have in his mercy…That is my only treasure…If you want to feel joy, to have an attraction for suffering, it is your consolation that you are seeking…Understand that to be his victim of love, the weaker one is, without desires or virtues, the more suited one is for the workings of this consuming and transforming Love…Oh!How I would like to be able to make you understand what I feel! …It is confidence and nothing but confidence that must lead us to Love”.[134]
    139.In many of her writings, Therese speaks of her struggle with forms of spirituality overly focused on human effort, on individual merit, on offering sacrifices and carrying out certain acts in order to “win heaven”.For her, “merit does not consist in doing or in giving much, but rather in receiving”.[135]Let us read once again some of these deeply meaningful texts where she emphasizes this and presents it as a simple and rapid means of taking hold of the Lord “by his heart”.
    140.To her sister Léonie she writes, “I assure you that God is much better than you believe.He is content with a glance, a sigh of love…As for me, I find perfection very easy to practise because I have understood it is a matter of taking hold of Jesus by his heart…Look at a little child who has just annoyed his mother… If he comes to her, holding out his little arms, smiling and saying: ‘Kiss me, I will not do it again’, will his mother be able not to press him to her heart tenderly and forget his childish mischief?However, she knows her dear little one will do it again on the next occasion, but this does not matter; if he takes her again by her heart, he will not be punished”.[136]
    141.So too, in a letter to Father Adolphe Roulland she writes, “[M]y way is all confidence and love.I do not understand souls who fear a friend so tender.At times, when I am reading certain spiritual treatises in which perfection is shown through a thousand obstacles, surrounded by a crowd of illusions, my poor little mind quickly tires; I close the learned book that is breaking my head and drying up my heart, and I take up Holy Scripture.Then all seems luminous to me; a single word uncovers for my soul infinite horizons, perfection seems simple to me.I see that it is sufficient to recognize one’s nothingness and to abandon oneself like a child into God’s arms”.[137]
    142.In yet another letter, she relates this to the love shown by a parent: “I do not believe that the heart of [a] father could resist the filial confidence of his child, whose sincerity and love he knows.He realizes, however, that more than once his son will fall into the same faults, but he is prepared to pardon him always, if his son always takes him by his heart”.[138]
    RESONANCES WITHIN THE SOCIETY OF JESUS
    143.We have seen how Saint Claude de La Colombière combined the spiritual experience of Saint Margaret Mary with the aim of the Spiritual Exercises.I believe that the place of the Sacred Heart in the history of the Society of Jesus merits a few brief words.
    144.The spirituality of the Society of Jesus has always proposed an “interior knowledge of the Lord in order to love and follow him more fully”.[139]Saint Ignatius invites us in his Spiritual Exercises to place ourselves before the Gospel that tells us that, “[Christ’s] side was pierced by the lance and blood and water flowed forth”.[140]When retreatants contemplate the wounded side of the crucified Lord, Ignatius suggests that they enter into the heart of Christ.Thus we have a way to enlarge our own hearts, recommended by one who was a “master of affections”, to use the words of Saint Peter Faber in one of his letters to Saint Ignatius.[141]Father Juan Alfonso de Polanco echoed that same expression in his biography of Saint Ignatius: “He [Cardinal Gasparo Contarini] realized that in Father Ignatius he had encountered a master of affections”.[142]The colloquies that Saint Ignatius proposed are an essential part of this training of the heart, for in them we sense and savour with the heart a Gospel message and converse about it with the Lord.Saint Ignatius tells us that we can share our concerns with the Lord and seek his counsel.Anyone who follows the Exercises can readily see that they involve a dialogue, heart to heart.
    145.Saint Ignatius brings his contemplations to a crescendo at the foot of the cross and invites the retreatant to ask the crucified Lord with great affection, “as one friend to another, as a servant to his master”, what he or she must do for him.[143]The progression of the Exercises culminates in the “Contemplation to Attain Love”, which gives rise to thanksgiving and the offering of one’s “memory, understanding and will” to the heart which is the fount and origin of every good thing.[144]This interior contemplation is not the fruit of our understanding and effort, but is to be implored as a gift.
    146.This same experience inspired the great succession of Jesuit priests who spoke explicitly of the heart of Jesus: Saint Francis Borgia, Saint Peter Faber, Saint Alphonsus Rodriguez, Father Álvarez de Paz, Father Vincent Carafa, Father Kasper Drużbicki and countless others.In 1883, the Jesuits declared that, “the Society of Jesus accepts and receives with an overflowing spirit of joy and gratitude the most agreeable duty entrusted to it by our Lord Jesus Christ to practise, promote and propagate devotion to his divine heart”.[145]In September 1871, Father Pieter Jan Beckx consecrated the Society to the Sacred Heart of Jesus and, as a sign that it remains an outstanding element in the life of the Society, Father Pedro Arrupe renewed that consecration in 1972, with a conviction that he explained in these words: “I therefore wish to say to the Society something about which I feel I cannot remain silent.From my novitiate on, I have always been convinced that what we call devotion to the Sacred Heart contains a symbolic expression of what is most profound in Ignatian spirituality, and of an extraordinary efficacy –ultra quam speraverint– both for its own perfection and for its apostolic fruitfulness.I continue to have this same conviction…In this devotion I encounter one of the deepest sources of my interior life”.[146]
    147.When Saint John Paul II urged “all the members of the Society to be even more zealous in promoting this devotion, which corresponds more than ever to the expectations of our time”, he did so because he recognized the profound connection between devotion to the heart of Christ and Ignatian spirituality.For “the desire to ‘know the Lord intimately’ and to ‘have a conversation’ with him, heart to heart, is characteristic of the Ignatian spiritual and apostolic dynamism, thanks to the Spiritual Exercises, and this dynamism is wholly at the service of the love of the heart of God”.[147]
    A BROAD CURRENT OF THE INTERIOR LIFE
    148.Devotion to the heart of Christ reappears in the spiritual journey of many saints, all quite different from each other; in every one of them, the devotion takes on new hues.Saint Vincent de Paul, for example, used to say that what God desires is the heart: “God asks primarily for our heart – our heart – and that is what counts.How is it that a man who has no wealth will have greater merit than someone who has great possessions that he gives up?Because the one who has nothing does it with greater love; and that is what God especially wants…”[148]This means allowing one’s heart to be united to that of Christ.“What blessing should a Sister not hope for from God if she does her utmost to put her heart in the state of being united with the heart of our Lord!”[149]
    149.At times, we may be tempted to consider this mystery of love as an admirable relic from the past, a fine spirituality suited to other times.Yet we need to remind ourselves constantly that, as a saintly missionary once said, “this divine heart, which let itself be pierced by an enemy’s lance in order to pour forth through that sacred wound the sacraments by which the Church was formed, has never ceased to love”.[150]More recent saints, like Saint Pius of Pietrelcina, Saint Teresa of Calcutta and many others, have spoken with deep devotion of the heart of Christ.Here I would also mention the experiences of Saint Faustina Kowalska, which re-propose devotion to the heart of Christ by greatly emphasizing the glorious life of the risen Lord and his divine mercy.Inspired by her experiences and the spiritual legacy of Saint Józef Sebastian Pelczar (1842-1924),[151]Saint John Paul II intimately linked his reflections on divine mercy with devotion to the heart of Christ: “The Church seems in a singular way to profess the mercy of God and to venerate it when she directs herself to the heart of Christ.In fact, it is precisely this drawing close to Christ in the mystery of his heart which enables us to dwell on this point of the revelation of the merciful love of the Father, a revelation that constituted the central content of the messianic mission of the Son of Man”.[152]Saint John Paul also spoke of the Sacred Heart in very personal terms, acknowledging that, “it has spoken to me ever since my youth”.[153]
    150.The enduring relevance of devotion to the heart of Christ is especially evident in the work of evangelization and education carried out by the numerous male and female religious congregations whose origins were marked by this profoundly Christological devotion.Mentioning all of them by name would be an endless undertaking. Let us simply consider two examples taken at random: “The Founder [Saint Daniel Comboni] discovered in the mystery of the heart of Jesus the source of strength for his missionary commitment”.[154]“Caught up as we are in the desires of the heart of Jesus, we want people to grow in dignity, as human beings and as children of God.Our starting point is the Gospel, with all that it demands from us of love, forgiveness and justice, and of solidarity with those who are poor and rejected by the world”.[155]So too, the many shrines worldwide that are consecrated to the heart of Christ continue to be an impressive source of renewal in prayer and spiritual fervour.To all those who in any way are associated with these spaces of faith and charity I send my paternal blessing.
    THE DEVOTION OF CONSOLATION
    151.The wound in Christ’s side, the wellspring of living water, remains open in the risen body of the Saviour.The deep wound inflicted by the lance and the wounds of the crown of thorns that customarily appear in representations of the Sacred Heart are an inseparable part of this devotion, in which we contemplate the love of Christ who offered himself in sacrifice to the very end.The heart of the risen Lord preserves the signs of that complete self-surrender, which entailed intense sufferings for our sake.It is natural, then, that the faithful should wish to respond not only to this immense outpouring of love, but also to the suffering that the Lord chose to endure for the sake of that love.
    With Jesus on the cross
    152.It is fitting to recover one particular aspect of the spirituality that has accompanied devotion to the heart of Christ, namely, the interior desire to offer consolation to that heart.Here I will not discuss the practice of “reparation”, which I deem better suited to the social dimension of this devotion to be discussed in the next chapter.I would like instead to concentrate on the desire often felt in the hearts of the faithful who lovingly contemplate the mystery of Christ’s passion and experience it as a mystery which is not only recollected but becomes present to us by grace, or better, allows us to be mystically present at the moment of our redemption.If we truly love the Lord, how could we not desire to console him?
    153.Pope Pius XI wished to ground this particular devotion in the realization that the mystery of our redemption by Christ’s passion transcends, by God’s grace, all boundaries of time and space.On the cross, Jesus offered himself for all sins, including those yet to be committed, including our own sins.In the same way, the acts we now offer for his consolation, also transcending time, touch his wounded heart.“If, because of our sins too, as yet in the future but already foreseen, the soul of Jesus became sorrowful unto death, it cannot be doubted that at the same time he derived some solace from our reparation, likewise foreseen, at the moment when ‘there appeared to him an angel from heaven’ (Lk22:43), in order that his heart, oppressed with weariness and anguish, might find consolation.And so even now, in a wondrous yet true manner, we can and ought to console that Most Sacred Heart, which is continually wounded by the sins of thankless men”.[156]
    Reasons of the heart
    154.It might appear to some that this aspect of devotion to the Sacred Heart lacks a firm theological basis, yet the heart has its reasons.Here thesensus fideliumperceives something mysterious, beyond our human logic, and realizes that the passion of Christ is not merely an event of the past, but one in which we can share through faith.Meditation on Christ’s self-offering on the cross involves, for Christian piety, something much more than mere remembrance.This conviction has a solid theological grounding.[157]We can also add the recognition of our own sins, which Jesus took upon his bruised shoulders, and our inadequacy in the face of that timeless love, which is always infinitely greater.
    155.We may also question how we can pray to the Lord of life, risen from the dead and reigning in glory, while at the same time comforting him in the midst of his sufferings.Here we need to realize that his risen heart preserves its wound as a constant memory, and that the working of grace makes possible an experience that is not restricted to a single moment of the past.In pondering this, we find ourselves invited to take a mystical path that transcends our mental limitations yet remains firmly grounded in the word of God.Pope Pius XI makes this clear: “How can these acts of reparation offer solace now, when Christ is already reigning in the beatitude of heaven?To this question, we may answer in the words of Saint Augustine, which are very apposite here – ‘Give me the one who loves, and he will understand what I say’.Anyone possessed of great love for God, and who looks back to the past, can dwell in meditation on Christ, and see him labouring for man, sorrowing, suffering the greatest hardships, ‘for us men and for our salvation’, well-nigh worn out with sadness, with anguish, nay ‘bruised for our sins’ (Is53:5), and bringing us healing by those very bruises.The more the faithful ponder all these things the more clearly they see that the sins of mankind, whenever they were committed, were the reason why Christ was delivered up to death”.[158]
    156.Those words of Pius XI merit serious consideration.When Scripture states that believers who fail to live in accordance with their faith “are crucifying again the Son of God” (Heb6:6), or when Paul, offering his sufferings for the sake of others, says that, “in my flesh I am completing what is lacking in Christ’s afflictions” (Col1:24), or again, when Christ in his passion prays not only for his disciples at that time, but also for “those who will believe in me through their word” (Jn17:20), all these statements challenge our usual way of thinking.They show us that it is not possible to sever the past completely from the present, however difficult our minds find this to grasp.The Gospel, in all its richness, was written not only for our prayerful meditation, but also to enable us to experience its reality in our works of love and in our interior life.This is certainly the case with regard to the mystery of Christ’s death and resurrection.The temporal distinctions that our minds employ appear incapable of embracing the fullness of this experience of faith, which is the basis both of our union with Christ in his suffering and of the strength, consolation and friendship that we enjoy with him in his risen life.
    157.We see, then, the unity of the paschal mystery in these two inseparable and mutually enriching aspects.The one mystery, present by grace in both these dimensions, ensures that whenever we offer some suffering of our own to Christ for his consolation, that suffering is illuminated and transfigured in the paschal light of his love.We share in this mystery in our own life because Christ himself first chose to share in that life.He wished to experience first, as Head, what he would then experience in his Body, the Church: both our wounds and our consolations.When we live in God’s grace, this mutual sharing becomes for us a spiritual experience.In a word, the risen Lord, by the working of his grace, mysteriously unites us to his passion.The hearts of the faithful, who experience the joy of the resurrection, yet at the same time desire to share in the Lord’s passion, understand this.They desire to share in his sufferings by offering him the sufferings, the struggles, the disappointments and the fears that are part of their own lives.Nor do they experience this as isolated individuals, since their sufferings are also a participation in the suffering of the mystical Body of Christ, the holy pilgrim People of God, which shares in the passion of Christ in every time and place.The devotion of consolation, then, is in no way ahistorical or abstract; it becomes flesh and blood in the Church’s pilgrimage through history.
    Compunction
    158.The natural desire to console Christ, which begins with our sorrow in contemplating what he endured for us, grows with the honest acknowledgment of our bad habits, compulsions, attachments, weak faith, vain goals and, together with our actual sins, the failure of our hearts to respond to the Lord’s love and his plan for our lives.This experience proves purifying, for love needs the purification of tears that, in the end, leave us more desirous of God and less obsessed with ourselves.
    159.In this way, we see that the deeper our desire to console the Lord, the deeper will be our sincere sense of “compunction”.Compunction is “not a feeling of guilt that makes us discouraged or obsessed with our unworthiness, but a beneficial ‘piercing’ that purifies and heals the heart.Once we acknowledge our sin, our hearts can be opened to the working of the Holy Spirit, the source of living water that wells up within us and brings tears to our eyes…This does not mean weeping in self-pity, as we are so often tempted to do…To shed tears of compunction means seriously to repent of grieving God by our sins; recognizing that we always remain in God’s debt…Just as drops of water can wear down a stone, so tears can slowly soften hardened hearts.Here we see the miracle of sorrow, that ‘salutary sorrow’ which brings great peace…Compunction, then, is not our work but a grace and, as such, it must be sought in prayer.”[159]It means, “asking for sorrow in company with Christ in his sorrow, for anguish with Christ in his anguish, for tears and a deep sense of pain at the great pains that Christ endured for my sake”.[160]
    160.I ask, then, that no one make light of the fervent devotion of the holy faithful people of God, which in its popular piety seeks to console Christ.I also encourage everyone to consider whether there might be greater reasonableness, truth and wisdom in certain demonstrations of love that seek to console the Lord than in the cold, distant, calculated and nominal acts of love that are at times practised by those who claim to possess a more reflective, sophisticated and mature faith.
    Consoled ourselves in order to console others
    161.In contemplating the heart of Christ and his self-surrender even to death, we ourselves find great consolation.The grief that we feel in our hearts gives way to complete trust and, in the end, what endures is gratitude, tenderness, peace; what endures is Christ’s love reigning in our lives.Compunction, then, “is not a source of anxiety but of healing for the soul, since it acts as a balm on the wounds of sin, preparing us to receive the caress of the Lord”.[161]Our sufferings are joined to the suffering of Christ on the cross.If we believe that grace can bridge every distance, this means that Christ by his sufferings united himself to the sufferings of his disciples in every time and place.In this way, whenever we endure suffering, we can also experience the interior consolation of knowing that Christ suffers with us.In seeking to console him, we will find ourselves consoled.
    162.At some point, however, in our contemplation, we should likewise hear the urgent plea of the Lord: “Comfort, comfort my people!” (Is40:1).As Saint Paul tells us, God offers us consolation “so that we may be able to console those who are in any affliction, with the consolation by which we ourselves are consoled by God” (2 Cor1:4).
    163.This then challenges us to seek a deeper understanding of the communitarian, social and missionary dimension of all authentic devotion to the heart of Christ.For even as Christ’s heart leads us to the Father, it sends us forth to our brothers and sisters.In the fruits of service, fraternity and mission that the heart of Christ inspires in our lives, the will of the Father is fulfilled.In this way, we come full circle: “My Father is glorified by this, that you bear much fruit” (Jn15:8).
    CHAPTER FIVE
    LOVE FOR LOVE
    164.In the spiritual experiences of Saint Margaret Mary Alacoque, we encounter, along with an ardent declaration of love for Jesus Christ, a profoundly personal and challenging invitation to entrust our lives to the Lord.The knowledge that we are loved, and our complete confidence in that love, in no way lessens our desire to respond generously, despite our frailty and our many shortcomings.
    A LAMENT AND A REQUEST
    165.Beginning with his second great apparition to Saint Margaret Mary, Jesus spoke of the sadness he feels because his great love for humanity receives in exchange “nothing but ingratitude and indifference”, “coldness and contempt”.And this, he added, “is more grievous to me than all that I endured in my Passion”.[162]
    166.Jesus spoke of his thirst for love and revealed that his heart is not indifferent to the way we respond to that thirst.In his words, “I thirst, but with a thirst so ardent to be loved by men in the Most Blessed Sacrament, that this thirst consumes me; and I have not encountered anyone who makes an effort, according to my desire, to quench my thirst, giving back a return for my love”.[163]Jesus asks for love.Once the faithful heart realizes this, its spontaneous response is one of love, not a desire to multiply sacrifices or simply discharge a burdensome duty: “I received from my God excessive graces of his love, and I felt moved by the desire to respond to some of them and to respond with love for love”.[164]As my Predecessor Leo XIII pointed out, through the image of his Sacred Heart, the love of Christ “moves us to return love for love”.[165]
    EXTENDING CHRIST’S LOVE TO OUR BROTHERS AND SISTERS
    167.We need once more to take up the word of God and to realize, in doing so, that our best response to the love of Christ’s heart is to love our brothers and sisters.There is no greater way for us to return love for love.The Scriptures make this patently clear:
    “Just as you did it to one of the least of these my brethren, you did it to me” (Mt25:40).
    “For the whole law is summed up in a single commandment: ‘You shall love your neighbour as yourself’” (Gal5:14).
    “We know that we have passed from death to life because we love one another. Whoever does not love abides in death” (1Jn3:14).
    “Those who do not love a brother or sister whom they have seen, cannot love God whom they have not seen” (1 Jn4:20).
    168.Love for our brothers and sisters is not simply the fruit of our own efforts; it demands the transformation of our selfish hearts.This realization gave rise to the oft-repeated prayer: “Jesus, make our hearts more like your own”.Saint Paul, for his part, urged his hearers to pray not for the strength to do good works, but “to have the same mind among you that was in Christ Jesus” (Phil2:5).
    169.We need to remember that in the Roman Empire many of the poor, foreigners and others who lived on the fringes of society met with respect, affection and care from Christians.This explains why the apostate emperor Julian, in one of his letters, acknowledged that one reason why Christians were respected and imitated was the assistance they gave the poor and strangers, who were ordinarily ignored and treated with contempt.For Julian, it was intolerable that the Christians whom he despised, “in addition to feeding their own, also feed our poor and needy, who receive no help from us”.[166]The emperor thus insisted on the need to create charitable institutions to compete with those of the Christians and thus gain the respect of society: “There should be instituted in each city many accommodations so that the immigrants may enjoy our philanthropy… and make the Greeks accustomed to such works of generosity”.[167]Julian did not achieve his objective, no doubt because underlying those works there was nothing comparable to the Christian charity that respected the unique dignity of each person.
    170.By associating with the lowest ranks of society (cf.Mt25:31-46), “Jesusbrought the great novelty of recognizing the dignity of every person, especially those who were considered ‘unworthy’.This new principle in human history – which emphasizes that individuals are even more ‘worthy’ of our respect and love when they are weak, scorned, or suffering, even to the point of losing the human ‘figure’ – has changed the face of the world.It has given life to institutions that take care of those who find themselves in disadvantaged conditions, such as abandoned infants, orphans, the elderly who are left without assistance, the mentally ill, people with incurable diseases or severe deformities, and those living on the streets”.[168]
    171.In contemplating the pierced heart of the Lord, who “took our infirmities and bore our diseases” (Mt8:17), we too are inspired to be more attentive to the sufferings and needs of others, and confirmed in our efforts to share in his work of liberation as instruments for the spread of his love.[169]As we meditate on Christ’s self-offering for the sake of all, we are naturally led to ask why we too should not be ready to give our lives for others: “We know love by this, that he laid down his life for us – and that we ought to lay down our lives for one another” (1 Jn3:16).
    ECHOES IN THE HISTORY OF SPIRITUALITY
    172.This bond between devotion to the heart of Jesus and commitment to our brothers and sisters has been a constant in the history of Christian spirituality.Let us consider a few examples.
    Being a fountain from which others can drink
    173.Starting with Origen, various Fathers of the Church reflected on the words of John 7:38 – “out of his heart shall flow rivers of living water” – which refer to those who, having drunk of Christ, put their faith in him.Our union with Christ is meant not only to satisfy our own thirst, but also to make us springs of living water for others.Origen wrote that Christ fulfils his promise by making fountains of fresh water well up within us: “The human soul, made in the image of God, can itself contain and pour forth wells, fountains and rivers”.[170]
    174.Saint Ambrose recommended drinking deeply of Christ, “in order that the spring of water welling up to eternal life may overflow in you”.[171]Marius Victorinus was convinced that the Holy Spirit has given of himself in such abundance that, “whoever receives him becomes a heart that pours forth rivers of living water”.[172]Saint Augustine saw this stream flowing from the believer as benevolence.[173]Saint Thomas Aquinas thus maintained that whenever someone “hastens to share various gifts of grace received from God, living water flows from his heart”.[174]
    175.Although “the sacrifice offered on the cross in loving obedience renders most abundant and infinite satisfaction for the sins of mankind”,[175]the Church, born of the heart of Christ, prolongs and bestows, in every time and place, the fruits of that one redemptive passion, which lead men and women to direct union with the Lord.
    176.In the heart of the Church, the mediation of Mary, as our intercessor and mother, can only be understood as “a sharing in the one source, which is the mediation of Christ himself”,[176]the sole Redeemer.For this reason, “the Church does not hesitate to profess the subordinate role of Mary”.[177]Devotion to the heart of Mary in no way detracts from the sole worship due the heart of Christ, but rather increases it: “Mary’s function as mother of humanity in no way obscures or diminishes this unique mediation of Christ, but rather shows its power”.[178]Thanks to the abundant graces streaming from the open side of Christ, in different ways the Church, the Virgin Mary and all believers become themselves streams of living water.In this way, Christ displays his glory in and through our littleness.
    Fraternity and mysticism
    177.Saint Bernard, in exhorting us to union with the heart of Christ, draws upon the richness of this devotion to call for a conversion grounded in love.Bernard believed that our affections, enslaved by pleasures, may nonetheless be transformed and set free, not by blind obedience to a commandment but rather in response to the delectable love of Christ.Evil is overcome by good, conquered by the flowering of love: “Love the Lord your God with the full and deep affection of all your heart; love him with your mind wholly alert and intent; love him with all your strength, so much so that you would not even fear to die for love of him…Your affection for the Lord Jesus should be both sweet and intimate, to oppose the sweet enticements of the sensual life.Sweetness conquers sweetness, as one nail drives out another”.[179]
    178.Saint Francis de Sales was particularly taken by Jesus’ words, “Learn from me; for I am gentle and humble in heart” (Mt11:29).Even in the most simple and ordinary things, he said, we can “steal” the Lord’s heart.“Those who would serve him acceptably must give heed not only to lofty and important matters, but to things mean and little, since by both alike we may win his heart and love…I mean the acts of daily forbearance, the headache, the toothache, the heavy cold; the tiresome peculiarities of a husband or wife, the broken glass, the loss of a ring, a handkerchief, a glove; the sneer of a neighbour; the effort of going to bed early in order to rise early for prayer or communion, the little shyness some people feel in openly performing religious duties… Be sure that all these sufferings, small as they are, if accepted lovingly, are most pleasing to God’s goodness”.[180]Ultimately, however, our response to the love of the heart of Christ is manifested in love of our neighbour: “a love that is firm, constant, steady, unconcerned with trivial matters or people’s station in life, not subject to changes or animosity…Our Lord loves us unceasingly, puts up with so many of our defects and our flaws.Precisely because of this, we must do the same with our brothers and sisters, never tiring of putting up with them”.[181]
    179.Saint Charles de Foucauld sought to imitate Jesus by living and acting as he did, in a constant effort to do what Jesus would have done in his place.Only by being conformed to the sentiments of the heart of Christ could he fully achieve this goal.Here too we find the idea of “love for love”.In his words, “I desire sufferings in order to return love for love, to imitate him… to enter into his work, to offer myself with him, the nothingness that I am, as a sacrifice, as a victim, for the sanctification of men”.[182]The desire to bring the love of Jesus to others, his missionary outreach to the poorest and most forgotten of our world, led him to take as his emblem the words, “Iesus-Caritas”, with the symbol of the heart of Christ surmounted by a cross.[183]Nor was this a light decision: “With all my strength I try to show and prove to these poor lost brethren that our religion is all charity, all fraternity, and that its emblem is a heart”.[184]He wanted to settle with other brothers “in Morocco, in the name of the heart of Jesus”.[185]In this way, their evangelizing work could radiate outwards: “Charity has to radiate from our fraternities, as it radiates from the heart of Jesus”.[186]This desire gradually made him a “universal brother”.Allowing himself to be shaped by the heart of Christ, he sought to shelter the whole of suffering humanity in his fraternal heart: “Our heart, like that of Jesus, must embrace all men and women”.[187]“The love of the heart of Jesus for men and women, the love that he demonstrated in his passion, this is what we need to have for all human beings”.[188]
    180.Father Henri Huvelin, the spiritual director of Saint Charles de Foucauld, observed that, “when our Lord dwells in a heart, he gives it such sentiments, and this heart reaches out to the least of our brothers and sisters.Such was the heart of Saint Vincent de Paul…When our Lord lives in the soul of a priest, he makes him reach out to the poor”.[189]It is important to realize that the apostolic zeal of Saint Vincent, as Father Huvelin describes it, was also nurtured by devotion to the heart of Christ.Saint Vincent urged his confreres to “find in the heart of our Lord a word of consolation for the poor sick person”.[190]If that word is to be convincing, our own heart must first have been changed by the love and tenderness of the heart of Christ.Saint Vincent often reiterated this conviction in his homilies and counsels, and it became a notable feature of the Constitutions of his Congregation: “We should make a great effort to learn the following lesson, also taught by Christ: ‘Learn from me, for I am gentle and humble of heart’.We should remember that he himself said that by gentleness we inherit the earth.If we act on this, we will win people over so that they will turn to the Lord.That will not happen if we treat people harshly or sharply”.[191]
    REPARATION: BUILDING ON THE RUINS
    181.All that has been said thus far enables us to understand in the light of God’s word the proper meaning of the “reparation” to the heart of Christ that the Lord expects us, with the help of his grace, to “offer”.The question has been much discussed, but Saint John Paul II has given us a clear response that can guide Christians today towards a spirit of reparation more closely attuned to the Gospels.
    The social significance of reparation to the heart of Christ
    182.Saint John Paul explained that by entrusting ourselves together to the heart of Christ, “over the ruins accumulated by hatred and violence, the greatly desired civilization of love, the Kingdom of the heart of Christ, can be built”.This clearly requires that we “unite filial love for God and love of neighbour”, and indeed this is “the true reparation asked by the heart of the Saviour”.[192]In union with Christ, amid the ruins we have left in this world by our sins, we are called to build a new civilization of love.That is what it means to make reparation as the heart of Christ would have us do.Amid the devastation wrought by evil, the heart of Christ desires that we cooperate with him in restoring goodness and beauty to our world.
    183.All sin harms the Church and society; as a result, “every sin can undoubtedly be considered as a social sin” and this is especially true for those sins that “by their very matter constitute a direct attack on one’s neighbour”.[193]Saint John Paul II explained that the repetition of these sins against others often consolidates a “structure of sin” that has an effect on the development of peoples.[194]Frequently, this is part of a dominant mind-set that considers normal or reasonable what is merely selfishness and indifference.This then gives rise to social alienation: “A society is alienated if its forms of social organization, production and consumption make it more difficult to offer the gift of self and to establish solidarity between people”.[195]It is not only a moral norm that leads us to expose and resist these alienated social structures and to support efforts within society to restore and consolidate the common good.Rather, it is our “conversion of heart” that “imposes the obligation”[196]to repair these structures.It is our response to the love of the heart of Jesus, which teaches us to love in turn.
    184.Precisely because evangelical reparation possesses this vital social dimension, our acts of love, service and reconciliation, in order to be truly reparative, need to be inspired, motivated and empowered by Christ.Saint John Paul II also observed that “to build the civilization of love”,[197]our world today needs the heart of Christ.Christian reparation cannot be understood simply as a congeries of external works, however indispensable and at times admirable they may be.These need a “mystique”, a soul, a meaning that grants them strength, drive and tireless creativity.They need the life, the fire and the light that radiate from the heart of Christ.
    Mending wounded hearts
    185.Nor is a merely outward reparation sufficient, either for our world or for the heart of Christ.If each of us considers his or her own sins and their effect on others, we will realize that repairing the harm done to this world also calls for a desire to mend wounded hearts where the deepest harm was done, and the hurt is most painful.
    186.A spirit of reparation thus “leads us to hope that every wound can be healed, however deep it may be.Complete reparation may at times seem impossible, such as when goods or loved ones are definitively lost, or when certain situations have become irremediable.Yet the intention to make amends, and to do so in a concrete way, is essential for the process of reconciliation and a return to peace of heart”.[198]
    The beauty of asking forgiveness
    187.Good intentions are not enough.There has to be an inward desire that finds expression in our outward actions.“Reparation, if it is to be Christian, to touch the offended person’s heart and not be a simple act of commutative justice, presupposes two demanding things:acknowledging our guiltandasking forgiveness…It is from the honest acknowledgment of the wrong done to our brother or sister, and from the profound and sincere realization that love has been compromised, that the desire to make amends arises”.[199]
    188.We should never think that acknowledging our sins before others is somehow demeaning or offensive to our human dignity.On the contrary, it demands that we stop deceiving ourselves and acknowledge our past for what it is, marred by sin, especially in those cases when we caused hurt to our brothers and sisters.“Self-accusation is part of Christian wisdom…It is pleasing to the Lord, because the Lord accepts a contrite heart”.[200]
    189.Part of this spirit of reparation is the custom of asking forgiveness from our brothers and sisters, which demonstrates great nobility amid our human weakness.Asking forgiveness is a means of healing relationships, for it “re-opens dialogue and manifests the will to re-establish the bond of fraternal charity…It touches the heart of our brother or sister, brings consolation and inspires acceptance of the forgiveness requested. Even if the irreparable cannot be completely repaired, love can always be reborn, making the hurt bearable”.[201]
    190.A heart capable of compunction will grow in fraternity and solidarity.Otherwise, “we regress and grow old within”, whereas when “our prayer becomes simpler and deeper, grounded in adoration and wonder in the presence of God, we grow and mature.We become less attached to ourselves and more attached to Christ.Made poor in spirit, we draw closer to the poor, those who are dearest to God”.[202]This leads to a true spirit of reparation, for “those who feel compunction of heart increasingly feel themselves brothers and sisters to all the sinners of the world; renouncing their airs of superiority and harsh judgments, they are filled with a burning desire to show love and make reparation”.[203]The sense of solidarity born of compunction also enables reconciliation to take place.The person who is capable of compunction, “rather than feeling anger and scandal at the failings of our brothers and sisters, weeps for their sins.There occurs a sort of reversal, where the natural tendency to be indulgent with ourselves and inflexible with others is overturned and, by God’s grace, we become strict with ourselves and merciful towards others”.[204]
    REPARATION: AN EXTENSION OF THE HEART OF CHRIST
    191.There is another, complementary, approach to reparation, which allows us to set it in an even more direct relationship with the heart of Christ, without excluding the aspect of concrete commitment to our brothers and sisters.
    192.Elsewhere I have suggested that, “God has in some way sought to limit himself in such a way that many of the things we think of as evils, dangers or sources of suffering, are in reality part of the pains of childbirth which he uses to draw us into the act of cooperation with the Creator”.[205]This cooperation on our part can allow the power and the love of God to expand in our lives and in the world, whereas our refusal or indifference can prevent it.Several passages of the Bible express this metaphorically, as when the Lord cries out, “If only you would return to me, O Israel!” (cf.Jer4:1).Or when, confronted with rejection by his people, he says, “My heart recoils within me; my compassion grows warm and tender” (Hos11:8).
    193.Even though it is not possible to speak of new suffering on the part of the glorified Lord,“the paschal mystery of Christ… and all that Christ is – all that he did and suffered for all men – participates in the divine eternity, and so transcends all times while being made present in them all”.[206]We can say that he has allowed the expansive glory of his resurrection to be limited and the diffusion of his immense and burning love to be contained, in order to leave room for our free cooperation with his heart.Our rejection of his love erects a barrier to that gracious gift, whereas our trusting acceptance of it opens a space, a channel enabling it to pour into our hearts.Our rejection or indifference limits the effects of his power and the fruitfulness of his love in us.If he does not encounter openness and confidence in me, his love is deprived – because he himself has willed it – of its extension, unique and unrepeatable, in my life and in this world, where he calls me to make him present.Again, this does not stem from any weakness on his part but rather from his infinite freedom, his mysterious power and his perfect love for each of us.When God’s power is revealed in the weakness of our human freedom, “only faith can discern it”.[207]
    194.Saint Margaret Mary recounted that, in one of Christ’s appearances, he spoke of his heart’s passionate love for us, telling her that, “unable to contain the flames of his burning charity, he must spread them abroad”.[208]Since the Lord, who can do all things, desired in his divine freedom to require our cooperation, reparation can be understood as our removal of the obstacles we place before the expansion of Christ’s love in the world by our lack of trust, gratitude and self-sacrifice.
    An Oblation to Love
    195.To help us reflect more deeply on this mystery, we can turn once more to the luminous spirituality of Saint Therese of the Child Jesus.Therese was aware that in certain quarters an extreme form of reparation had developed, based on a willingness to offer oneself in sacrifice for others, and to become in some sense a “lightning rod” for the chastisements of divine justice.In her words, “I thought about the souls who offer themselves as victims of God’s justice in order to turn away the punishments reserved to sinners, drawing them upon themselves”.[209]However, as great and generous as such an offering might appear, she did not find it overly appealing: “I was far from feeling attracted to making it”.[210]So great an emphasis on God’s justice might eventually lead to the notion that Christ’s sacrifice was somehow incomplete or only partly efficacious, or that his mercy was not sufficiently powerful.
    196.With her great spiritual insight, Saint Therese discovered that we can offer ourselves in another way, without the need to satisfy divine justice but by allowing the Lord’s infinite love to spread freely: “O my God!Is your disdained love going to remain closed up within your heart?It seems to me that if you were to find souls offering themselves as victims of holocaust to your love, you would consume them rapidly; it seems to me, too, that you would be happy not to hold back the waves of infinite tenderness within you”.[211]
    197.While nothing need be added to the one redemptive sacrifice of Christ, it remains true that our free refusal can prevent the heart of Christ from spreading the “waves of his infinite tenderness” in this world.Again, this is because the Lord wishes to respect our freedom.More than divine justice, it was the fact that Christ’s love might be refused that troubled the heart of Saint Therese, because for her, God’s justice is understood only in the light of his love.As we have seen, she contemplated all God’s perfections through his mercy, and thus saw them transfigured and resplendent with love.In her words, “even his justice (and perhaps this even more so than the others) seems to me clothed in love”.[212]
    198.This was the origin of her Act of Oblation, not to God’s justice but to his merciful love.“I offer myself as a victim of holocaust to your merciful love, asking you to consume me incessantly, allowing the waves of infinite tenderness shut up within you to overflow into my soul, and that thus I may become a martyr of your love”.[213]It is important to realize that, for Therese, this was not only about allowing the heart of Christ to fill her heart, through her complete trust, with the beauty of his love, but also about letting that love, through her life, spread to others and thus transform the world.Again, in her words, “In the heart of the Church, my Mother, I shall be love… and thus my dream will be realized”.[214]The two aspects were inseparably united.
    199.The Lord accepted her oblation.We see that shortly thereafter she stated that she felt an intense love for others and maintained that it came from the heart of Christ, prolonged through her.So she told her sister Léonie: “I love you a thousand times more tenderly than ordinary sisters love each other, for I can love you with the heart of our celestial spouse”.[215]Later, to Maurice Bellière she wrote, “How I would like to make you understand the tenderness of the heart of Jesus, what he expects from you!”[216]
    Integrity and Harmony
    200.Sisters and brothers, I propose that we develop this means of reparation, which is, in a word, to offer the heart of Christ a new possibility of spreading in this world the flames of his ardent and gracious love.While it remains true that reparation entails the desire to “render compensation for the injuries inflicted on uncreated Love, whether by negligence or grave offense”,[217]the most fitting way to do this is for our love to offer the Lord a possibility of spreading, in amends for all those occasions when his love has been rejected or refused.This involves more than simply the “consolation” of Christ of which we spoke in the previous chapter; it finds expression in acts of fraternal love by which we heal the wounds of the Church and of the world.In this way, we offer the healing power of the heart of Christ new ways of expressing itself.
    201.The sacrifices and sufferings required by these acts of love of neighbour unite us to the passion of Christ.In this way, “by that mystic crucifixion of which the Apostle speaks, we shall receive the abundant fruits of its propitiation and expiation, for ourselves and for others”.[218]Christ alone saves us by his offering on the cross; he alone redeems us, for “there is one God; there is also one mediator between God and men, the man Christ Jesus, who gave himself as a ransom for all” (1Tim2:5-6).The reparation that we offer is a freely accepted participation in his redeeming love and his one sacrifice.We thus complete in our flesh “what is lacking in Christ’s afflictions for the sake of his body, that is, the Church” (Col1:24); and Christ himself prolongs through us the effects of his complete and loving self-oblation.
    202.Often, our sufferings have to do with our own wounded ego.The humility of the heart of Christ points us towards the path of abasement.God chose to come to us in condescension and littleness.The Old Testament had already shown us, with a variety of metaphors, a God who enters into the heart of history and allows himself to be rejected by his people.Christ’s love was shown amid the daily life of his people, begging, as it were, for a response, as if asking permission to manifest his glory.Yet “perhaps only once did the Lord Jesus refer to his own heart, in his own words.And he stresses this sole feature: ‘gentleness and lowliness’, as if to say that only in this way does he wish to win us to himself”.[219]When he said, “Learn from me, for I am gentle and humble in heart” (Mt11:29), he showed us that “to make himself known, he needs our littleness, our self-abasement”.[220]
    203.In what we have said, it is important to note several inseparable aspects.Acts of love of neighbour, with the renunciation, self-denial, suffering and effort that they entail, can only be such when they are nourished by Christ’s own love.He enables us to love as he loved, and in this way he loves and serves others through us.He humbles himself to show his love through our actions, yet even in our slightest works of mercy, his heart is glorified and displays all its grandeur.Once our hearts welcome the love of Christ in complete trust, and enable its fire to spread in our lives, we become capable of loving others as Christ did, in humility and closeness to all.In this way, Christ satisfies his thirst and gloriously spreads the flames of his ardent and gracious love in us and through us.How can we fail to see the magnificent harmony present in all this?
    204.Finally, in order to appreciate this devotion in all of its richness, it is necessary to add, in the light of what we have said about its Trinitarian dimension, that the reparation made by Christ in his humanity is offered to the Father through the working of the Holy Spirit in each of us.Consequently, the reparation we offer to the heart of Christ is directed ultimately to the Father, who is pleased to see us united to Christ whenever we offer ourselves through him, with him and in him.
    BRINGING LOVE TO THE WORLD
    205.The Christian message is attractive when experienced and expressed in its totality: not simply as a refuge for pious thoughts or an occasion for impressive ceremonies.What kind of worship would we give to Christ if we were to rest content with an individual relationship with him and show no interest in relieving the sufferings of others or helping them to live a better life?Would it please the heart that so loved us, if we were to bask in a private religious experience while ignoring its implications for the society in which we live?Let us be honest and accept the word of God in its fullness.On the other hand, our work as Christians for the betterment of society should not obscure its religious inspiration, for that, in the end, would be to seek less for our brothers and sisters than what God desires to give them.For this reason, we should conclude this chapter by recalling the missionary dimension of our love for the heart of Christ.
    206.Saint John Paul II spoke of the social dimension of devotion to the heart of Christ, but also about “reparation, which is apostolic cooperation in the salvation of the world”.[221]Consecration to the heart of Christ is thus “to be seen in relation to the Church’s missionary activity, since it responds to the desire of Jesus’ heart to spread throughout the world, through the members of his Body, his complete commitment to the Kingdom”.[222]As a result, “through the witness of Christians, love will be poured into human hearts, to build up the body of Christ which is the Church, and to build a society of justice, peace and fraternity”.[223]
    207.The flames of love of the Sacred Heart of Jesus also expand through the Church’s missionary outreach, which proclaims the message of God’s love revealed in Christ.Saint Vincent de Paul put this nicely when he invited his disciples to pray to the Lord for “this spirit, this heart that causes us to go everywhere, this heart of the Son of God, the heart of our Lord, that disposes us to go as he went…he sends us, like [the apostles], to bring fire everywhere”.[224]
    208.Saint Paul VI, addressing religious Congregations dedicated to the spread of devotion to the Sacred Heart, made the following observation.“There can be no doubt that pastoral commitment and missionary zeal will fan into flame, if priests and laity alike, in their desire to spread the glory of God, contemplate the example of eternal love that Christ has shown us, and direct their efforts to make all men and women sharers in the unfathomable riches of Christ”.[225]As we contemplate the Sacred Heart, mission becomes a matter of love.For the greatest danger in mission is that, amid all the things we say and do, we fail to bring about a joyful encounter with the love of Christ who embraces us and saves us.
    209.Mission, as a radiation of the love of the heart of Christ, requires missionaries who are themselves in love and who, enthralled by Christ, feel bound to share this love that has changed their lives.They are impatient when time is wasted discussing secondary questions or concentrating on truths and rules, because their greatest concern is to share what they have experienced.They want others to perceive the goodness and beauty of the Beloved through their efforts, however inadequate they may be.Is that not the case with any lover?We can take as an example the words with which Dante Alighieri sought to express this logic of love:
    “Io dico che, pensando al suo valore
    amor si dolce si mi si fa sentire,
    che s’io allora non perdessi ardire
    farei parlando innamorar la gente”.[226]
    210.To be able to speak of Christ, by witness or by word, in such a way that others seek to love him, is the greatest desire of every missionary of souls.This dynamism of love has nothing to do with proselytism; the words of a lover do not disturb others, they do not make demands or oblige, they only lead others to marvel at such love.With immense respect for their freedom and dignity, the lover simply waits for them to inquire about the love that has filled his or her life with such great joy.
    211.Christ asks you never to be ashamed to tell others, with all due discretion and respect, about your friendship with him.He asks that you dare to tell others how good and beautiful it is that you found him.“Everyone who acknowledges me before others, I also will acknowledge before my Father in heaven” (Mt10:32).For a heart that loves, this is not a duty but an irrepressible need: “Woe to me if I do not proclaim the Gospel!” (1 Cor9:16).“Within me there is something like a burning fire shut up in my bones; I am weary with holding it in, and I cannot” (Jer20:9).
    In communion of service
    212.We should not think of this mission of sharing Christ as something only between Jesus and me.Mission is experienced in fellowship with our communities and with the whole Church.If we turn aside from the community, we will be turning aside from Jesus.If we turn our back on the community, our friendship with Jesus will grow cold.This is a fact, and we must never forget it.Love for the brothers and sisters of our communities – religious, parochial, diocesan and others – is a kind of fuel that feeds our friendship with Jesus.Our acts of love for our brothers and sisters in community may well be the best and, at times, the only way that we can witness to others our love for Jesus Christ.He himself said, “By this everyone will know that you are my disciples, if you have love for one another” (Jn13:35).
    213.This love then becomes service within the community.I never tire of repeating that Jesus told us this in the clearest terms possible: “Just as you did it to one of the least of these my brethren, you did it to me” (Mt25:40).He now asks you to meet him there, in every one of our brothers and sisters, and especially in the poor, the despised and the abandoned members of society.What a beautiful encounter that can be!
    214.If we are concerned with helping others, this in no way means that we are turning away from Jesus.Rather, we are encountering him in another way.Whenever we try to help and care for another person, Jesus is at our side.We should never forget that, when he sent his disciples on mission, “the Lord worked with them” (Mk16:20).He is always there, always at work, sharing our efforts to do good.In a mysterious way, his love becomes present through our service.He speaks to the world in a language that at times has no need of words.
    215.Jesus is calling you and sending you forth to spread goodness in our world.His call is one of service, a summons to do good, perhaps as a physician, a mother, a teacher or a priest.Wherever you may be, you can hear his call and realize that he is sending you forth to carry out that mission.He himself told us, “I am sending you out” (Lk10:3).It is part of our being friends with him.For this friendship to mature, however, it is up to you to let him send you forth on a mission in this world, and to carry it out confidently, generously, freely and fearlessly.If you stay trapped in your own comfort zone, you will never really find security; doubts and fears, sorrow and anxiety will always loom on the horizon.Those who do not carry out their mission on this earth will find not happiness, but disappointment.Never forget that Jesus is at your side at every step of the way.He will not cast you into the abyss, or leave you to your own devices.He will always be there to encourage and accompany you.He has promised, and he will do it: “For I am with you always, to the end of the age” (Mt28:20).
    216.In your own way, you too must be a missionary, like the apostles and the first disciples of Jesus, who went forth to proclaim the love of God, to tell others that Christ is alive and worth knowing.Saint Therese experienced this as an essential part of her oblation to merciful Love: “I wanted to give my Beloved to drink and I felt myself consumed with a thirst for souls”.[227]That is your mission as well.Each of us must carry it out in his or her own way; you will come to see how you can be a missionary.Jesus deserves no less.If you accept the challenge, he will enlighten you, accompany you and strengthen you, and you will have an enriching experience that will bring you much happiness.It is not important whether you see immediate results; leave that to the Lord who works in the secret of our hearts.Keep experiencing the joy born of our efforts to share the love of Christ with others.
    CONCLUSION
    217.The present document can help us see that the teaching of the social EncyclicalsLaudato Si’andFratelli Tuttiis not unrelated to our encounter with the love of Jesus Christ.For it is by drinking of that same love that we become capable of forging bonds of fraternity, of recognizing the dignity of each human being, and of working together to care for our common home.
    218.In a world where everything is bought and sold, people’s sense of their worth appears increasingly to depend on what they can accumulate with the power of money.We are constantly being pushed to keep buying, consuming and distracting ourselves, held captive to a demeaning system that prevents us from looking beyond our immediate and petty needs.The love of Christ has no place in this perverse mechanism, yet only that love can set us free from a mad pursuit that no longer has room for a gratuitous love.Christ’s love can give a heart to our world and revive love wherever we think that the ability to love has been definitively lost.
    219.The Church also needs that love, lest the love of Christ be replaced with outdated structures and concerns, excessive attachment to our own ideas and opinions, and fanaticism in any number of forms, which end up taking the place of the gratuitous love of God that liberates, enlivens, brings joy to the heart and builds communities.The wounded side of Christ continues to pour forth that stream which is never exhausted, never passes away, but offers itself time and time again to all those who wish to love as he did.For his love alone can bring about a new humanity.
    220.I ask our Lord Jesus Christ to grant that his Sacred Heart may continue to pour forth the streams of living water that can heal the hurt we have caused, strengthen our ability to love and serve others, and inspire us to journey together towards a just, solidary and fraternal world.Until that day when we will rejoice in celebrating together the banquet of the heavenly kingdom in the presence of the risen Lord, who harmonizes all our differences in the light that radiates perpetually from his open heart.May he be blessed forever.
    Given in Rome, at Saint Peter’s, on 24 October of the year 2024, the twelfth of my Pontificate.
    FRANCIS
    ______________________________
    [1]Many of the reflections in this first chapter were inspired by the unpublished writings of the late Father Diego Fares, S.J.May the Lord grant him eternal rest.
    [2]Cf. HOMER,Iliad, XXI, 441.
    [3]Cf.Iliad, X, 244.
    [4]Cf. PLATO,Timaeus, 65 c-d; 70.
    [5]Homily at Morning Mass in Domus Sanctae Marthae, 14 October 2016:L’Osservatore Romano, 15 October 2016, p. 8.
    [6]SAINT JOHN PAUL II,Angelus, 2 July 2000:L’Osservatore Romano, 3-4 July 2000, p. 4.
    [7]ID.,Catechesis, 8 June 1994:L’Osservatore Romano, 9 June 1994, p. 5.
    [8]The Demons(1873).
    [9]ROMANO GUARDINI,Religiöse Gestalten in Dostojewskijs Werk, Mainz/Paderborn, 1989, pp. 236ff.
    [10]KARL RAHNER,“Some Theses for a Theology of Devotion to the Sacred Heart”, inTheological Investigations, vol. III, Baltimore-London, 1967, p. 332.
    [11]Ibid., p. 333.
    [12]BYUNG-CHUL HAN,Heideggers Herz.Zum Begriff der Stimmung bei Martin Heidegger, München, 1996, p. 39.
    [13]Ibid., p. 60; cf. p. 176.
    [14]Cf. ID.,Agonie des Eros, Berlin, 2012.
    [15]Cf. MARTIN HEIDEGGER,Erläuterungen zu Hölderlins Dichtung, Frankfürt a. M., 1981, p. 120.
    [16]Cf. MICHEL DE CERTEAU,L’espace du désir ou le «fondement» des Exercises Spirituels:Christus77 (1973), pp. 118-128.
    [17]Itinerarium Mentis in Deum, VII, 6.
    [18]ID.,Proemium in I Sent.,q. 3.
    [19]SAINT JOHN HENRY NEWMAN,Meditations and Devotions, London, 1912, Part III [XVI], par. 3, pp. 573-574.
    [20]Pastoral ConstitutionGaudium et Spes, 82.
    [21]Ibid., 10.
    [22]Ibid., 14.
    [23]Cf.DICASTERY FOR THE DOCTRINE OF THE FAITH, DeclarationDignitas Infinita(2 April 2024), 8.Cf.L’Osservatore Romano, 8 April 2024.
    [24]Pastoral ConstitutionGaudium et Spes, 26.
    [25]SAINT JOHN PAUL II,Angelus, 28 June 1998:L’Osservatore Romano, 30 June-1 July 1998, p. 7.
    [26]Encyclical LetterLaudato Si’(24 May 2015),83: AAS 107 (2015), 880.
    [27]Homily at Morning Mass in Domus Sanctae Marthae, 7 June 2013:L’Osservatore Romano, 8 June 2013, p. 8.
    [28]PIUS XII, Encyclical LetterHaurietis Aquas(15 May 1956), I: AAS 48 (1956), 316.
    [29]PIUS VI, ConstitutionAuctorem Fidei(28 August 1794), 63: DH 2663.
    [30]LEO XIII,Encyclical LetterAnnum Sacrum(25 May 1899): ASS 31 (1898-1899), 649.
    [31]Ibid:“Inest in Sacro Corde symbolum et expressa imago infinitæ Iesu Christi caritatis”.
    [32]Angelus, 9 June 2013:L’Osservatore Romano, 10-11 June 2013, p. 8.
    [33]We canthus understand why the Church has forbidden placing on the altar representations of the heart of Jesus or Mary alone (cf. Response of the Congregation of Sacred Rites to the Reverend Charles Lecoq, P.S.S., 5 April 1879:Decreta Authentica Congregationis Sacrorum Rituum ex Actis ejusdem Collecta, vol. III, 107-108, n. 3492).Outside the liturgy, “for private devotion” (ibid.), the symbolism of a heart can be used as a teaching aid, an aesthetic figure or an emblem that invites one to meditate on the love of Christ, but this risks taking the heart as an object of adoration or spiritual dialogue apart from the Person of Christ.On 31 March 1887, the Congregation gave another, similar response (ibid., 187, n. 3673).
    [34]ECUMENICAL COUNCIL OF TRENT, Session XXV, DecreeMandat Sancta Synodus(3 December 1563): DH 1823.
    [35]FIFTH GENERAL CONFERENCE OF THE LATIN AMERICAN AND CARIBBEAN BISHOPS,Aparecida Document(29 June 2007), n. 259.
    [36]Encyclical LetterHaurietis Aquas(15 May 1956), I: AAS 48 (1956), 323-324.
    [37]Ep. 261, 3: PG 32, 972.
    [38]In Io. homil.63, 2: PG 59, 350.
    [39]De fide ad Gratianum, II, 7, 56: PL 16, 594 (ed. 1880).
    [40]Enarr. in Ps. 87, 3: PL 37, 1111.
    [41]Cf.De fide orth. 3, 6, 20: PG 94, 1006, 1081.
    [42]OLEGARIO GONZÁLEZ DE CARDEDAL,La entraña del cristianismo, Salamanca, 2010, 70-71.
    [43]Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [44]PIUS XII, Encyclical LetterHaurietis Aquas(15 May 1956), II: AAS 48 (1956), 327-328.
    [45]Ibid.: AAS 48 (1956), 343-344.
    [46]BENEDICT XVI,Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [47]VIGILIUS,ConstitutionInter Innumeras Sollicitudines(14 May 553):DH 420.
    [48]ECUMENICAL COUNCIL OF EPHESUS,Anathemas of Cyril of Alexandria, 8: DH 259.
    [49]SECOND ECUMENICAL COUNCIL OF CONSTANTINOPLE, Session VIII (2 June 553), Canon 9: DH 431.
    [50]SAINT JOHN OF THE CROSS,Spiritual Canticle, red.A, Stanza 22, 4.
    [51]Ibid., Stanza 12, 8.
    [52]Ibid., Stanza 12, 1.
    [53]“There is one God, the Father, from whom are all things and for whom we exist” (1 Cor8:6).“To our God and Father be glory forever and ever. Amen”(Phil4:20).“Blessed be the God and Father of our Lord Jesus Christ, the Father of mercies and the God of all consolation”(2 Cor1:3).
    [54]Apostolic LetterTertio Millennio Adveniente(10 November 1994), 49: AAS 87 (1995), 35.
    [55]Ad Rom., 7: PG 5, 694.
    [56]“That the world may know that I love the Father” (Jn14:31); “The Father and I are one” (Jn10:30); “I am in the Father and the Father is in me” (Jn14:10).
    [57]“Iam going to the Father” (pros ton Patéra:Jn16:28).“I am coming to you” (pros se:Jn17:11).
    [58]“eis ton kolpon tou Patrós”.
    [59]Adv. Haer., III, 18, 1: PG 7, 932.
    [60]In Joh.II, 2: PG 14, 110.
    [61]Angelus, 23 June 2002:L’Osservatore Romano, 24-25 June 2002, p. 1.
    [62]SAINT JOHN PAUL II,Message on the Hundredth Anniversary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus, 3:L’Osservatore Romano, 12 June 1999, p. 5.
    [63]ID.,Angelus, 8 June 1986:L’Osservatore Romano, 9-10 June 1986, p. 5
    [64]Homily, Visit to the Gemelli Hospital and to the Faculty of Medicine of the Catholic University of the Sacred Heart, 27 June 2014:L’Osservatore Romano, 29 June 2014, p. 7.
    [65]Eph1:5, 7; 2:18; 3:12.
    [66]Eph2:5, 6; 4:15.
    [67]Eph1:3, 4, 6, 7, 11, 13, 15; 2:10, 13, 21, 22; 3:6, 11, 21.
    [68]Message on the Hundredth Anniversary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus, 2:L’Osservatore Romano, 12 June 1999, p. 5.
    [69]“Since there is in the Sacred Heart a symbol and the express image of the infinite love of Jesus Christ that moves us to love one another, it is fit and proper that we should consecrate ourselves to his most Sacred Heart – an act that is nothing else than an offering and a binding of oneself to Jesus Christ, for whatever honour, veneration and love is given to this divine Heart is really and truly given to Christ himself…And now, today, behold another blessed and heavenly token is offered to our sight – the most Sacred Heart of Jesus, with a cross rising from it and shining forth with dazzling splendour amidst flames of love.In that Sacred Heart all our hopes should be placed, and from it the salvation of men is to be confidently besought” (Encyclical LetterAnnum Sacrum[25 May 1899]: ASS 31 [1898-1899], 649, 651).
    [70]“For is not the sum of all religion and therefore the pattern of more perfect life, contained in that most auspicious sign and in the form of piety that follows from it inasmuch as it more readily leads the minds of men to an intimate knowledge of Christ our Lord, and more efficaciously moves their hearts to love him more vehemently and to imitate him more closely?”(Encyclical LetterMiserentissimus Redemptor[8 May 1928]: AAS 20 [1928], 167).
    [71]“For it is perfectly clear that this devotion, if we examine its proper nature, is a most excellent act of religion, inasmuch as it demands the full and absolute determination of surrendering and consecrating oneself to the love of the divine Redeemer whose wounded heart is the living sign and symbol of that love…In it, we can contemplate not only the symbol, but also, as it were, the synthesis of the whole mystery of our redemption…Christ expressly and repeatedly pointed to his heart as the symbol by which men are drawn to recognize and acknowledge his love, and at the same time constituted it as the sign and pledge of his mercy and his grace for the needs of the Church in our time” (Encyclical LetterHaurietis Aquas[15 May 1956], Proemium, III, IV: AAS 48 [1956], 311, 336, 340).
    [72]Catechesis, 8 June 1994, 2:L’Osservatore Romano, 9 June 1994, p. 5.
    [73]Angelus, 1 June 2008:L’Osservatore Romano, 2-3 June 2008, p. 1.
    [74]Encyclical LetterHaurietis Aquas(15 May 1956), IV: AAS 48 (1956), 344.
    [75]Cf.ibid.: AAS 48 (1956), 336.
    [76]“The value of private revelations is essentially different from that of the one public revelation: the latter demands faith…A private revelation… is a help which is proffered, but its use is not obligatory” (BENEDICT XVI, Apostolic ExhortationVerbum Domini[30 September 2010], 14: AAS 102 [2010]), 696).
    [77]Encyclical LetterHaurietis Aquas(15 May 1956), IV: AAS 48 (1956), 340.
    [78]Ibid.: AAS 48 (1956), 344.
    [79]Ibid.
    [80]Apostolic ExhortationC’est la Confiance(15 October 2023), 20:L’Osservatore Romano, 16 October 2023.
    [81]SAINT THERESE OF THE CHILD JESUS,Autobiography, Ms A, 83v°.
    [82]SAINT MARIA FAUSTINA KOWALSKA,Diary, 47 (22 February 1931),Marian Press, Stockbridge, 2011, p. 46.
    [83]Mishnah Sukkah, IV, 5, 9.
    [84]Letter to the Superior General of the Society of Jesus, Paray-le-Monial (France), 5 October 1986:L’Osservatore Romano, 7 October 1986, p. IX.
    [85]Acta Martyrum Lugdunensium, in EUSEBIUS OF CAESARIA,Historia Ecclesiastica, V, 1: PG 20, 418.
    [86]RUFINUS, V, 1, 22, in GCS,EusebiusII, 1, p. 411, 13ff.
    [87]SAINT JUSTIN,Dial.135,3: PG 6, 787
    [88]NOVATIAN,De Trinitate, 29: PL 3, 994; cf. SAINT GREGORY OF ELVIRA,Tractatus Origenis de libris Sanctarum Scripturarum, XX, 12: CSSL 69, 144.
    [89]Expl. Ps.1:33: PL 14, 983-984.
    [90]Cf.Tract. in Ioannem61, 6: PL 35, 1801.
    [91]Ep. ad Rufinum, 3, 4.3: PL 22, 334.
    [92]Sermones in Cant.61, 4: PL 183, 1072.
    [93]Expositio altera super Cantica Canticorum, c. 1: PL 180, 487.
    [94]WILLIAM OF SAINT-THIERRY,De natura et dignitate amoris, 1: PL 184, 379.
    [95]ID.,Meditivae Orationes, 8, 6: PL 180, 230.
    [96]SAINT BONAVENTURE,Lignum Vitae.De mysterio passionis, 30.
    [97]Ibid., 47.
    [98]Legatus divinae pietatis, IV, 4, 4: SCh 255, 66.
    [99]LÉON DEHON,Directoire spirituel des prêtres su Sacré Cœur de Jésus, Turnhout, 1936, II, ch. VII, n. 141.
    [100]Dialogue on Divine Providence, LXXV: FIORILLI M.-CARAMELLA S., eds., Bari, 1928, 144.
    [101]Cf., for example, ANGELUS WALZ,De veneratione divini cordis Iesu in Ordine Praedicatorum, Pontificium Institutum Angelicum, Rome, 1937.
    [102]RAFAEL GARCÍA HERREROS, Vida de San Juan Eudes, Bogotá, 1943, 42.
    [103]SAINT FRANCIS DE SALES,Letter to Jane Frances de Chantal, 24 April 1610.
    [104]Sermon forthe Second Sunday of Lent, 20 February 1622.
    [105]Letter to Jane Frances de Chantal, Solemnity of the Ascension, 1612.
    [106]Letter to Marie Aimée de Blonay, 18 February 1618.
    [107]Letter to Jane Frances de Chantal, late November 1609.
    [108]Letter to Jane Frances de Chantal, ca. 25 February 1610.
    [109]Entretien XIV, on religious simplicity and prudence.
    [110]Letter to Jane Frances de Chantal,10 June 1611.
    [111]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 53.
    [112]Ibid.
    [113]Ibid., n. 55.
    [114]Cf. DICASTERY FOR THE DOCTRINE OF THE FAITH,Norms for Proceeding in the Discernment of Alleged Supernatural Phenomena, 17 May 2024, I, A, 12.
    [115]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 92.
    [116]Letter to Sœur de la Barge, 22 October 1689.
    [117]Autobiography, n. 53.
    [118]Ibid., n. 55.
    [119]Sermon on Trust in God, inŒuvres du R.P de La Colombière, t. 5, Perisse, Lyon, 1854, p. 100.
    [120]Spiritual Exercises in London, 1-8 February 1677, inŒuvres du R.P de La Colombière, t. 7, Seguin, Avignon, 1832, p. 93.
    [121]Spiritual Exercises in Lyon, October-November 1674, ibid., p. 45.
    [122]SAINT CHARLES DE FOUCAULD,Letter to Madame de Bondy, 27 April 1897.
    [123]Letter to Madame de Bondy, 28 April 1901.Cf.Letter to Madame de Bondy, 5 April 1909: “Through you I came to know the adoration of the Blessed Sacrament, the benedictions and the Sacred Heart”.
    [124]Letter to Madame de Bondy, 7 April 1890.
    [125]Letter to l’Abbé Huvelin, 27 June 1892.
    [126]SAINT CHARLES DE FOUCAULD,Méditations sur l’Ancien Testament (1896-1897), XXX, 1-21.
    [127]ID.,Letter to l’Abbé Huvelin, 16 May 1900.
    [128]ID.,Diary, 17 May 1906.
    [129]Letter 67 to Mme. Guérin, 18 November 1888.
    [130]Letter 122 to Céline, 14 October 1890.
    [131]Poem 23, “To the Sacred Heart of Jesus”, June or October 1895.
    [132]Letter 247 to l’Abbé Maurice Bellière, 21 June 1897.
    [133]Last Conversations. Yellow Notebook, 11 July 1897, 6.
    [134]Letter 197 to Sister Marie of the Sacred Heart, 17 September 1896.This does not mean that Therese did not offer sacrifices, sorrows and troubles as a way of associating herself with the suffering of Christ, but that, in the end, she was concerned not to give these offerings an importance they did not have.
    [135]Letter 142 to Céline, 6 July 1893.
    [136]Letter 191 to Léonie, 12 July 1896.
    [137]Letter 226 to Father Roulland, 9 May 1897.
    [138]Letter 258 to l’Abbé Maurice Bellière, 18 July 1897.
    [139]Cf. SAINT IGNATIUS LOYOLA,Spiritual Exercises, 104.
    [140]Ibid., 297.
    [141]Cf.Letter to Ignatius Loyola, 23 January 1541.
    [142]De Vita P. Ignatii et Societatis Iesu initiis, ch. 8.96.
    [143]Spiritual Exercises, 54.
    [144]Ibid., 230ff.
    [145]THIRTY-THIRD GENERAL CONGREGATION OF THE SOCIETY OF JESUS, Decree 46, 1:Institutum Societatis Iesu, 2, Florence, 1893, 511.
    [146]In Him Alone is Our Hope. Texts on the Heart of Christ, St. Louis, 1984.
    [147]Letter to the Superior General of the Society of Jesus, Paray-le-Monial, 5 October 1986:L’Osservatore Romano, 6 October 1986, p. 7.
    [148]Conference to Priests, “Poverty”, 13 August 1655.
    [149]Conference to the Daughters of Charity, “Mortification, Correspondence, Meals and Journeys (Common Rules,art. 24-27), 9 December 1657.
    [150]SAINT DANIELE COMBONI,Gli scritti,Bologna, 1991, 998 (n. 3324).
    [151]Homily at the Mass of Canonization, 18 May 2003:L’Osservatore Romano, 19-20 May 2003, p. 6.
    [152]SAINT JOHN PAUL II, Encyclical LetterDives in Misericordia(30 November 1980), 1: AAS 72 (1980), 1219.
    [153]ID.,Catechesis, 20 June 1979:L’Osservatore Romano, 22 June 1979, 1.
    [154]COMBONIAN MISSIONARIES OF THE HEART OF JESUS,Rule of Life, 3.
    [155]SOCIETY OF THE SACRED HEART,Constitutions of 1982, 7.
    [156]Encyclical LetterMiserentissimus Redemptor(8 May 1928): AAS 20 (1928), 174.
    [157]The believer’s act of faith has as its object not simply the doctrine proposed, but also union with Christ himself in the reality of his divine life (cf. SAINT THOMAS AQUINAS,Summa Theologiae, II-II, q. 1, a. 2, ad 2; q. 4, a. 1).
    [158]PIUS XI, Encyclical LetterMiserentissimus Redemptor(8 May 1928): AAS 20 (1928), 174.
    [159]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [160]SAINT IGNATIUS LOYOLA,Spiritual Exercises, 203.
    [161]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [162]SAINT MARGARET MARY ALACOQUE,Autobiography, n. 55.
    [163]Letter 133 to Father Croiset.
    [164]Autobiography, n. 92.
    [165]Encyclical LetterAnnum Sacrum(25 May 1899): ASS 31 (1898-1899), 649.
    [166]IULIANUS IMP.,Ep. XLIX ad Arsacium Pontificem Galatiae, Mainz, 1828, 90-91.
    [167]Ibid.
    [168]DICASTERY FOR THE DOCTRINE OF THE FAITH, DeclarationDignitas Infinita(2 April 2024), 19:L’Osservatore Romano, 8 April 2024.
    [169]Cf. BENEDICT XVI,Letter to the Superior General of the Society of Jesus on the Fiftieth Anniversary of the Encyclical“Haurietis Aquas”(15 May 2006): AAS 98 (2006), 461.
    [170]In Num. homil.12, 1: PG 12, 657.
    [171]Epist. 29, 24: PL 16, 1060.
    [172]Adv.Arium1, 8: PL 8, 1044.
    [173]Tract. in Joannem32, 4: PL 35, 1643.
    [174]Expos. in Ev. S. Joannis, cap. VII, lectio 5.
    [175]PIUS XII, Encyclical LetterHaurietis Aquas, 15 May 1956: AAS 48 (1956), 321.
    [176]SAINT JOHN PAUL II, Encyclical LetterRedemptoris Mater(25 March 1987), 38: AAS 79 (1987), 411.
    [177]SECOND VATICAN ECUMENICAL COUNCIL, Dogmatic ConstitutionLumen Gentium, 62.
    [178]Ibid., 60.
    [179]Sermones super Cant.,XX, 4: PL 183, 869.
    [180]Introduction to the Devout Life, Part III, xxxv.
    [181]Sermon for the XVII Sunday after Pentecost.
    [182]Écrits spirituels, Paris 1947, 67.
    [183]After 19 March 1902, all his letters begin with the wordsJesus Caritasseparated by a heart surmounted by the cross.
    [184]Letter to l’Abbé Huvelin, 15 July 1904.
    [185]Letter to Dom Martin, 25 January 1903.
    [186]Cited in RENÉVOILLAUME, Les fraternités du Père de Foucauld, Paris, 1946, 173.
    [187]Méditations des saints Évangiles sur les passages relatifs à quinze vertus, Nazareth, 1897-1898,Charité(Mt13:3), 60.
    [188]Ibid.,Charité(Mt22:1), 90.
    [189]H. HUVELIN,Quelques directeurs d’âmes au XVII siècle, Paris, 1911, 97.
    [190]Conference, “Service of the Sick and Care of One’s own Health”, 11 November 1657.
    [191]Common Rules of the Congregation of the Mission, 17 May 1658, c. 2, 6.
    [192]Letter to the Superior General of the Society of Jesus, Paray-le-Monial, 5 October 1986:L’Osservatore Romano, 6 October 1986, p. 7.
    [193]SAINT JOHN PAUL II, Post-Synodal Apostolic ExhortationReconciliatio et Paenitentia(2 December 1984), 16: AAS 77 (1985), 215.
    [194]Cf. Encyclical LetterSollicitudo Rei Socialis(30 December 1987), 36: AAS 80 (1988), 561-562.
    [195]Encyclical LetterCentesimus Annus(1 May 1991), 41: AAS 83 (1991), 844-845.
    [196]Catechism of the Catholic Church, 1888.
    [197]Catechesis, 8 June 1994, 2:L’Osservatore Romano, 4 May 1994, p. 5.
    [198]Address to the Participants in the International Colloquium “Réparer L’Irréparable”, on the 350thAnniversary of the Apparitions of Jesus in Paray-le-Monial, 4 May 2024:L’Osservatore Romano, 4 May 2024, p. 12.
    [199]Ibid.
    [200]Homily at Morning Mass in Domus Sanctae Marthae, 6 March 2018:L’Osservatore Romano, 5-6 March 2018, p. 8.
    [201]Address to the Participants in the International Colloquium “Réparer L’Irréparable”, on the 350thAnniversary of the Apparitions of Jesus in Paray-le-Monial, 4 May 2024:L’Osservatore Romano, 4 May 2024, p. 12.
    [202]Homily at the Chrism Mass, 28 March 2024:L’Osservatore Romano, 28 March 2024, p. 2.
    [203]Ibid.
    [204]Ibid.
    [205]Encyclical LetterLaudato Si’(24 May 2015), 80: AAS 107 (2015), 879.
    [206]Catechism of the Catholic Church, No. 1085.
    [207]Ibid., No. 268.
    [208]Autobiography, n. 53.
    [209]Ms A, 84r.
    [210]Ibid.
    [211]Ibid.
    [212]Ms A, 83v.; cf.Letter 226 to Father Roulland, 9 May 1897.
    [213]Act of Oblation to Merciful Love, 9 June 1895, 2r-2v.
    [214]Ms B, 3v.
    [215]Letter 186 to Léonie,11 April 1896.
    [216]Letter 258 to l’Abbé Bellière, 18 July 1897.
    [217]Cf. PIUS XI, Encyclical LetterMiserentissimus Redemptor, 8 May 1928: AAS 20 (1928), 169.
    [218]Ibid.: AAS 20 (1928), 172.
    [219]SAINT JOHN PAUL II, Catechesis, 20 June 1979:L’Osservatore Romano, 22 June 1979, p. 1.
    [220]Homily at Mass in Domus Sanctae Marthae, 27 June 2014:L’Osservatore Romano, 28 June 2014, p. 8.
    [221]Message for the Centenary of the Consecration of the Human Race to the Divine Heart of Jesus, Warsaw, 11 June 1999, Solemnity of the Sacred Heart of Jesus.L’Osservatore Romano, 12 June 1999, p. 5.
    [222]Ibid.
    [223]Letter to the Archbishop of Lyon on the occasion of the Pilgrimage of Paray-le-Monial for the Centenary of the Consecration of the Human Race to the Divine Heart of Jesus, 4 June 1999:L’Osservatore Romano, 12 June 1999, p. 4.
    [224]Conference,“Repetition of Prayer”, 22 August 1655.
    [225]LetterDiserti interpretes(25 May 1965), 4:Enchiridion della Vita Consacrata, Bologna-Milano, 2001, n. 3809.
    [226]Vita NuovaXIX, 5-6: “I declare that, in thinking of its worth, love so sweet makes me feel that, if my courage did not fail me, I would speak out and make everyone else fall in love”.
    [227] Ms A, 45v.

    MIL OSI Europe News

  • MIL-OSI USA: AUKUS Partners Complete Successful Tests of Autonomous and Networked Systems in Maritime Experimentation

    Source: United States Department of Defense

    In a significant development for maritime security, the United States, Australia, and the United Kingdom (AUKUS) have completed successful tests of several autonomous and networked systems during a three-week maritime experimentation called Autonomous Warrior 24 in Australia. The event was part of the Maritime Big Play (MBP) initiative and ongoing efforts to develop AUKUS Pillar II capabilities, a trilateral collaboration to improve maritime awareness through networked autonomy, decision advantage, and enhanced strike.

    The Maritime Big Play is a series of integrated trilateral experiments and exercises that are enhancing capability development, improving interoperability, and increasing the sophistication and scale of autonomous systems in the maritime domain. Australia led the Autonomous Warrior event, the signature MBP event in 2024. Other events associated with Maritime Big Play included the Robotic Experimentation and Prototyping Augmented by Maritime Unmanned Systems (REPMUS); and Technology Readiness Experimentation (T-REX).

    Through these experiments and exercises, AUKUS partners are further testing and refining the ability to jointly operate uncrewed maritime systems, share and process maritime data from all three nations, and provide real-time maritime domain awareness to support decision-making.

    “Autonomous Warrior/Maritime Big Play creates a unique opportunity for our three countries to work together, which will ultimately improve operational efficiency and allow us to work more cohesively against common threats,” said Heidi Shyu, Under Secretary of Defense for Research and Engineering. “This collaborative approach enables us to reduce acquisition, maintenance, and training cost by creating economies of scale.”

    The technologies tested during the October event support operations from deep under water to the edge of space. This included software-defined acoustic modems, multi-model autonomous underwater and surface vessels, and low-cost attritable unmanned surface vehicles. The tests also featured a low-cost gondola, which supports operations in the upper stratosphere with minimum manpower or logistics requirements, and T-200 high-altitude balloons, which provide resilient communications in denied environments from the stratosphere.

    A versatile and robust software-defined network architecture called Multi-Domain Uncrewed Secure Integrated Communications (MUSIC) was tested for its ability to enable seamless communication and coordination across diverse unmanned systems and operational environments. The Common Control System (CCS) was also featured in the exercise, built on an open architecture to provide uncrewed vehicles hardware and software that works across several different systems. This effort supports future work to create an AUKUS-wide Common Control System, fusing best elements of the three countries’ existing systems.

    “AUKUS partners have long histories of working together on defense and security issues, and have deep, enduring partnerships based on shared values, said Shyu. “By investing in novel and innovative capabilities directly aligned to AUKUS mission priorities, as well as making future advancements in emerging technologies like AI and Quantum, we support a more stable region — one where all nations are empowered to make their own sovereign decisions free from coercion — a world that centers on hope for the opportunity and prosperity of the future.”

    MIL OSI USA News

  • MIL-OSI: Equipment Leasing and Finance Association CapEx Finance Index: September 2024

    Source: GlobeNewswire (MIL-OSI)

    ********************************************************************************************************
    Note to readers: ELFA has updated the name of the Monthly Leasing and Finance Index (MLFI-25) to the CapEx Finance Index (CFI) to better reflect what it measures and how it impacts the broader U.S. economy.
    ********************************************************************************************************

    WASHINGTON, Oct. 24, 2024 (GLOBE NEWSWIRE) —

    Demand for equipment picked up. New business volume grew by $10.0 billion from August to September, a monthly increase of 2.2% before rounding. Growth in business volume has been uneven in 2024 but continues to hover around historic highs. The September release suggests that equipment investment continued to expand at a healthy pace at the end of the third quarter.  

    Bank lending drove new business growth. The sub-index for business volume at banks grew by 10.9% from August to September, which was more than enough to offset the contraction in activity at captives and independents, which declined by 2.3% and 9.8%, respectively. The figure below shows that bank activity has lagged other sources over the last few years, but the latest data suggests that banks may be easing back into the lending and leasing market.

    Lenders continue to add headcount. The 12-month change in employment was just over 1.0%, slightly slowing from the 1.2% pace recorded in August. Employment has been a source of strength this year, following nearly five years of persistent declines in headcount.

    Credit approvals remained steady. The percentage of credit applications approved ticked down 0.7 percentage points to 75.6%. The approval rate has been hovering around 75% for most of 2024.

    Lender balance sheets improved for a second consecutive month. The percentage of credit lines over 30 days past due and charge-offs declined. Both have been trending up over the last two years as borrowing conditions tightened due to the rapid increase in interest rates.

    Industry Confidence
    The Monthly Confidence Index from ELFA’s affiliate, the Equipment Leasing & Finance Foundation, is 61.8 in October, steady with the September index of 61.9, which was the highest level since January 2022.

    Industry Voices

    “Our latest CapEx Finance Survey showed that equipment demand continued to defy high interest rates in September. The uptick in bank lending was particularly encouraging and is something I will be watching closely as we approach the end of the year. I wouldn’t be surprised if the next few surveys show a cooling in lending volumes as election uncertainty peaks and some businesses wait for rates to drop further. That said, balance sheets continued to improve, and the percentage of approved new credit applications remained healthy, signs that lenders and borrowers are in a great position to weather any gusts that might come along in the fourth quarter.”
    ELFA President and CEO, Leigh Lytle

    “A healthy increase in YOY business volume, especially in August and September, validates our 12-month increase in headcount as we continue strengthening our value proposition for all of CEFI’s stakeholders. A decreasing interest rate environment driving increased business volume and net interest margin will enhance bottom-line returns for CEFI and the industry until competitors become more aggressive.” Ricardo E. Rios, CFA, CLFP, President & COO, Commercial Equipment Finance, Inc (CEFI)

    About ELFA’s CFI
    The CFI is the only near-real-time index that reflects capex, or the volume of commercial equipment financed in the U.S. It is released monthly from Washington, D.C., one day before the U.S. Department of Commerce’s durable goods report. This financial indicator complements reports like the Institute for Supply Management Index, providing a comprehensive view of productive assets in the U.S. economy—equipment produced, acquired and financed. The CFI consists of two years of business activity data from 25 participating companies. For more details, including methodology and participants, visit www.elfaonline.org/CFI.

    About ELFA
    The Equipment Leasing and Finance Association (ELFA) represents financial services companies and manufacturers in the $1 trillion U.S. equipment finance sector. ELFA’s 575 member companies provide essential financing that helps businesses acquire the equipment they need to operate and grow. Learn how equipment finance contributes to businesses’ success, U.S. economic growth, manufacturing and jobs at http://www.elfaonline.org.

    Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, avogt@elfaonline.org

    Photos accompanying this announcement are available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/cee789e6-c777-4190-9b5d-4361b6712379

    https://www.globenewswire.com/NewsRoom/AttachmentNg/721cf1e0-33c3-4767-882b-bceb720b01b1

    The MIL Network

  • MIL-OSI Security: Defense News: US, Australian Naval Forces Conduct Bilateral Operations

    Source: United States Navy

    Participating ships included the USN Arleigh Burke-class guided-missile destroyer USS Dewey (DDG 105) and the RAN Anzac-class frigate HMAS Stuart (FFH 153). The two ships took part in exercise Malabar 2024 earlier in October.

    “This exercise further builds on our existing interoperability and combined readiness we have with the Royal Australian Navy,” said Vice Adm. Fred Kacher, commander, U.S. 7th Fleet. “Every time we operate together, we strengthen our capabilities and shared commitment to a free and open Indo-Pacific.”

    Over four days, the ships engaged in a formation sailing exercise, an air defense exercise, maritime communications training, personnel cross-decks and visit, board, search and seizure drills.

    “Conducting a joint sail with USS Dewey has been of great value, with multiple different activities conducted between the ships, including personnel exchange, boarding practices, manoeuvring in close company, and warfare drills,” said Cmdr. Warren Bechly, commanding officer, HMAS Stuart. “Whether it is large scale exercises, or ships in transit between the same ports, working with our allies and partners is always a valuable opportunity to build closer ties and enhance interoperability.”

    The U.S. Navy regularly operates alongside our allies in the Indo-Pacific region as a demonstration of our shared commitment to the rules-based international order.

    Bilateral operations such as this one provide valuable opportunities to train, exercise and develop tactical interoperability across allied navies in the Indo-Pacific.

    Dewey is forward-deployed and assigned to Destroyer Squadron (DESRON) 15, the Navy’s largest DESRON and the U.S. 7th Fleet’s principal surface force.

    U.S. 7th Fleet is the U.S. Navy’s largest forward-deployed numbered fleet, and routinely interacts and operates with allies and partners in preserving a free and open Indo-Pacific region.

    MIL Security OSI

  • MIL-OSI: Turtle Beach Corporation to Report Third Quarter 2024 Financial Results on Thursday, November 7, 2024

    Source: GlobeNewswire (MIL-OSI)

    WHITE PLAINS, N.Y., Oct. 24, 2024 (GLOBE NEWSWIRE) — Turtle Beach Corporation (Nasdaq: HEAR) a leading gaming headset and accessories brand, today announced it will report financial results for the third quarter 2024 on Thursday, November 7, 2024 after the close of trading on the Nasdaq Stock Market.

    The Company will also host a conference call and audio webcast at 5:00p.m. ET / 2:00p.m. PT that same day to review the results. The call will be hosted by Cris Keirn, Chief Executive Officer, and John Hanson, Chief Financial Officer.

    Conference Call Information
    The live webcast of the call will be available on the “Events & Presentations” page of the Company’s website at www.turtlebeachcorp.com. Interested individuals may also join by dialing 1-800-717-1738 or 1-646-307-1865. To avoid delays, participants are encouraged to dial into the conference call 15-minutes ahead of the scheduled start time.

    A telephone replay of the call will be available through November 21, 2024 and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 1165333. A replay of the webcast will also be available on the investor relations website for a limited time.

    About Turtle Beach Corporation
    Turtle Beach Corporation (the “Company”) (www.turtlebeachcorp.com) is one of the world’s leading gaming accessory providers. The Company’s namesake Turtle Beach brand (www.turtlebeach.com) is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products (www.pdp.com) in 2024. Turtle Beach’s shares are traded on the Nasdaq Exchange under the symbol: HEAR.

    Cautionary Note on Forward-Looking Statements
    This press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”, “project”, “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Forward-looking statements are based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management.

    While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to logistic and supply chain challenges, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company’s other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.

    CONTACTS

    Investors:
    hear@icrinc.com
    (646) 277-1285

    Public Relations & Media:
    MacLean Marshall
    Sr. Director, Global Communications
    Turtle Beach Corporation
    (858) 914-5093
    maclean.marshall@turtlebeach.com

    The MIL Network

  • MIL-OSI: Jackery Introduces Solar Generator 5000 Plus – “Most Trusted Whole-Home Backup Power”

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Oct. 24, 2024 (GLOBE NEWSWIRE) — Jackery, a global leader of innovative solar generators and green off-grid energy solutions, has launched its newest and most advanced product yet – the Jackery Solar Generator 5000 Plus. Powerful, portable and compact, the 5000 Plus is the lightest generator in its class and ensures people will stay connected, powered and secure, even in the most difficult and unexpected circumstances.

    “Safety, sustainability and convenience are at the forefront of every solar generator we produce, and the 5000 Plus delivers at every turn,” said Jack Sun, CEO of Jackery. “Whether you need to power your entire home during an outage or emergency, need additional power while embracing outdoor living or reliable everyday power, the 5000 Plus provides the performance, safety and convenience that people need.”        

    With LFP battery cells, the 5000 Plus offers 4,000 life cycles, ensuring long-term reliability. It operates quietly and requires no maintenance, making it a better option for indoor use compared to traditional gas generators, especially during extreme weather conditions. The UPS feature allows for instantaneous switching to backup power during an outage, ensuring sensitive equipment like computers and other essential devices keep running without interruption and with zero downtime.

    When paired with Jackery’s Smart Transfer Switch (STS), a single 5000 Plus delivers up to 7200W of power. And, when connected to a second unit, users can get up to 14400W, making it more than sufficient to power a home in the most unpredictable situation. When equipped with all modular extensions and add-ons available, the full 5000 Plus ecosystem capability reaches an impressive 60kWh – enough power to sustain the average American household necessities for up to several days (based on an average daily usage of 30kWh/day).

    The modular design of the 5000 Plus ensures users can extend power capacity to fit their individual needs. This flexibility also offers users complete control over the power usage, capacity, spending, and savings, making it a truly personalized backup power solution. The Jackery 5000 Plus not only meets 120V load demands, but can also power 240V appliances, such as dryers, water pumps, ovens, and high-power electric tools. It is also capable of recharging RVs and electric vehicles.

    The 5000 Plus is also equipped with dual-voltage solar charging, meaning that the system can recharge through a high voltage rooftop solar system and with Jackery’s portable solar panels. The 5000 Plus is compatible with most solar panels that use an MC4 connector, supporting up to 4000W of charging power for fast and efficient recharging. Compatible with up to six Jackery SolarSaga 200W portable solar panels or two new Jackery SolarSaga 500W portable solar panels, it is an eco-friendly, cost-saving solution for long-term use.

    For added convenience, users can utilize smart app control to activate UPS mode, schedule charging, and more. This convenient app control also provides quick access to the 5000 Plus’s status with easy-to-set charge/discharge parameters and modes.

    Further, the 5000 Plus is built to last, with fireproof, shockproof and IPX4 water-resistant certifications. Combined with Jackery’s 5+2 year warranty, the 5000 Plus is an investment in safety, sustainability, and convenience, ensuring long-term peace of mind.

    Jackery is dedicated to developing reliable technology and offers the industry’s exclusive ChargeShield 2.0 and Class B standard, providing up to 62 layers of protection for charging, discharging, and battery management systems (BMS). The Company’s AI-driven variable speed charging technology ensures dependable power usage every time.

    Whether for emergencies, off-grid living, or reliable everyday power, the 5000 Plus delivers the performance, safety, and ease that people need and have come to rely on from Jackery’s solar generators.

    Finally, while designed with whole-home backup in mind, the 5000 Plus is also perfect for off-grid living and grid arbitrage, offering features like peak shaving and valley lifting to balance energy consumption, reduce energy bills, and alleviate pressure on the grid. Whether you need power for an off-grid cabin, RV, job site, or even film production, the 5000 Plus is the perfect green-energy solution.

    For more information on Jackery, the 5000 Plus and other products, please visit www.jackery.com. Be sure to follow Jackery on social media at @JackeryUSA for the latest updates in real time.

    ABOUT JACKERY
    Founded in California in 2012, Jackery is the world’s leading provider of innovative solar generators and off-grid green energy solutions. As a global top-selling solar generator brand, Jackery is driven by its mission to “Bring Green Energy to All.” By integrating with Geneverse in 2024, Jackery has expanded its product offerings and is able to deliver a comprehensive range of energy solutions, from portable solar generators for outdoor use to whole-home backup systems, furthering its commitment to making green energy accessible for all. Jackery has consistently fulfilled its social responsibility on a global scale, maintaining long-term partnerships with global public welfare organizations such as WWF, NFF, and IRC. Through these collaborations, Jackery continues to contribute to global sustainable development and other public welfare initiatives, reinforcing its dedication to creating a greener, more sustainable future.

    MEDIA CONTACTS
    ICR
    jackery@icrinc.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/910a7380-9682-4ba7-acd6-8c69fba4e929

    The MIL Network

  • MIL-Evening Report: Want to build healthier cities? Make room for bird and tree diversity

    Source: The Conversation (Au and NZ) – By Rachel Buxton, Assistant Professor, Department of Biology, Carleton University

    More than five million Canadians — approximately one in eight of us — are living with a mood, anxiety or substance use disorder. The prevalence of mental disorders is on the rise, with a third of those with a disorder reporting unmet or partially met needs for mental health-care services.

    The stresses of the city, where more than 70 per cent of Canadians now live, can increase the risk of poor mental health even further.

    When most people think about caring for their mental health, they may think about getting more exercise, getting more sleep and making sure they’re eating healthy. Increasingly, research is showing that spending time in nature surrounded by plants and wildlife can also contribute to preventing and treating mental illness.

    Our research focuses on the importance of birds and trees in urban neighbourhoods in promoting mental well-being. In our study, we combined more than a decade of health and ecological data across 36 Canadian cities and found a positive association between greater bird and tree diversity and self-rated mental health.

    The well-being benefits of healthy ecosystems will probably not come as a great surprise to urban dwellers who relish days out in the park or hiking in a nearby nature reserve. Still, the findings of our study speak to the potential of a nature-based urbanism that promotes the health of its citizens.




    Read more:
    How the health of honeybee hives can inform environmental policies in Canadian cities


    Birds, trees and human connection

    Across cultures and societies, people have strong connections with birds. The beauty of their bright song and colour have inspired art, music and poetry. Their contemporary cultural relevance has even earned them an affectionate, absurdist internet nickname: “birbs”.

    There’s something magical about catching a glimpse of a bird and hearing birdsong. For many urbanites, birds are our daily connection to wildlife and a gateway to nature. In fact, even if we don’t realize it, humans and birds are intertwined. Birds provide us with many essential services — controlling insects, dispersing seeds and pollinating our crops.

    People have similarly intimate connections with trees. The terms tree of life, family trees, even tree-hugger all demonstrate the central cultural importance trees have in many communities around the world. In cities, trees are a staple of efforts to bring beauty and tranquility.

    When the Australian city of Melbourne gave urban trees email addresses for people to report problems, residents responded by writing thousands of love letters to their favourite trees. Forest bathing, a practice of being calm and quiet among trees, is a growing wellness trend.

    Birds and trees as promoters of urban wellness

    Contact with nature and greenspace have a suite of mental health benefits.

    Natural spaces reduce stress and offer places for recreation and relaxation for urban dwellers, but natural diversity is key. A growing amount of research shows that the extent of these benefits may be related to the diversity of different natural features.

    For example, in the United States, higher bird diversity is associated with lower hospitalizations for mood and anxiety disorders and longer life expectancy. In a European study, researchers found that bird diversity was as important for life satisfaction as income.

    People’s connection to a greater diversity of birds and trees could be because we evolved to recognize that the presence of more species indicates a safer environment — one with more things to eat and more shelter. Biodiverse environments are also less work for the brain to interpret, allowing restoration of cognitive resources.

    To explore the relationship between biodiversity and mental health in urban Canada, we brought together unique datasets. First, we collected bird data sourced from community scientists, where people logged their bird sightings on an app. We then compared this data with tree diversity data from national forest inventories.

    Finally, we compared both of these data sets to a long-standing health survey that has interviewed approximately 65,000 Canadians each year for over two decades.

    We found that living in a neighbourhood with higher than average bird diversity increased reporting of good mental health by about seven per cent. While living in a neighbourhood with higher than average tree diversity increased good mental health by about five per cent.

    Importance of urban birds and trees

    The results of our study, and those of others, show a connection between urban bird and tree diversity, healthy ecosystems and people’s mental well-being. This underscores the importance of urban biodiversity conservation as part of healthy living promotion.

    Protecting wild areas in parks, planting pollinator gardens and reducing pesticide use could all be key strategies to protect urban wildlife and promote people’s well-being. Urban planners should take note.




    Read more:
    Eco-anxiety: climate change affects our mental health – here’s how to cope


    We’re at a critical juncture: just as we are beginning to understand the well-being benefits of birds and trees, we’re losing species at a faster rate than ever before. It’s estimated that there are three billion fewer birds in North America compared to the 1970s and invasive pests will kill 1.4 million street trees over the next 30 years.

    By promoting urban biodiversity, we can ensure a sustainable and healthy future for all species, including ourselves.

    Rachel Buxton receives funding from Natural Sciences and Engineering Research Council of Canada, National Institutes of Health, and Environment and Climate Change Canada.

    Emma J. Hudgins received funding from the Natural Sciences and Engineering Research Council of Canada and the Fonds de Recherche du Québec – Nature et Technologies for this work. She currently receives funding from Plant Health Australia.

    Stephanie Prince Ware has received funding from the Canadian Institutes of Health Research.

    ref. Want to build healthier cities? Make room for bird and tree diversity – https://theconversation.com/want-to-build-healthier-cities-make-room-for-bird-and-tree-diversity-235379

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Global: Want to build healthier cities? Make room for bird and tree diversity

    Source: The Conversation – Canada – By Rachel Buxton, Assistant Professor, Department of Biology, Carleton University

    More than five million Canadians — approximately one in eight of us — are living with a mood, anxiety or substance use disorder. The prevalence of mental disorders is on the rise, with a third of those with a disorder reporting unmet or partially met needs for mental health-care services.

    The stresses of the city, where more than 70 per cent of Canadians now live, can increase the risk of poor mental health even further.

    When most people think about caring for their mental health, they may think about getting more exercise, getting more sleep and making sure they’re eating healthy. Increasingly, research is showing that spending time in nature surrounded by plants and wildlife can also contribute to preventing and treating mental illness.

    Our research focuses on the importance of birds and trees in urban neighbourhoods in promoting mental well-being. In our study, we combined more than a decade of health and ecological data across 36 Canadian cities and found a positive association between greater bird and tree diversity and self-rated mental health.

    The well-being benefits of healthy ecosystems will probably not come as a great surprise to urban dwellers who relish days out in the park or hiking in a nearby nature reserve. Still, the findings of our study speak to the potential of a nature-based urbanism that promotes the health of its citizens.




    Read more:
    How the health of honeybee hives can inform environmental policies in Canadian cities


    Birds, trees and human connection

    Across cultures and societies, people have strong connections with birds. The beauty of their bright song and colour have inspired art, music and poetry. Their contemporary cultural relevance has even earned them an affectionate, absurdist internet nickname: “birbs”.

    There’s something magical about catching a glimpse of a bird and hearing birdsong. For many urbanites, birds are our daily connection to wildlife and a gateway to nature. In fact, even if we don’t realize it, humans and birds are intertwined. Birds provide us with many essential services — controlling insects, dispersing seeds and pollinating our crops.

    People have similarly intimate connections with trees. The terms tree of life, family trees, even tree-hugger all demonstrate the central cultural importance trees have in many communities around the world. In cities, trees are a staple of efforts to bring beauty and tranquility.

    When the Australian city of Melbourne gave urban trees email addresses for people to report problems, residents responded by writing thousands of love letters to their favourite trees. Forest bathing, a practice of being calm and quiet among trees, is a growing wellness trend.

    Birds and trees as promoters of urban wellness

    Contact with nature and greenspace have a suite of mental health benefits.

    Natural spaces reduce stress and offer places for recreation and relaxation for urban dwellers, but natural diversity is key. A growing amount of research shows that the extent of these benefits may be related to the diversity of different natural features.

    For example, in the United States, higher bird diversity is associated with lower hospitalizations for mood and anxiety disorders and longer life expectancy. In a European study, researchers found that bird diversity was as important for life satisfaction as income.

    People’s connection to a greater diversity of birds and trees could be because we evolved to recognize that the presence of more species indicates a safer environment — one with more things to eat and more shelter. Biodiverse environments are also less work for the brain to interpret, allowing restoration of cognitive resources.

    To explore the relationship between biodiversity and mental health in urban Canada, we brought together unique datasets. First, we collected bird data sourced from community scientists, where people logged their bird sightings on an app. We then compared this data with tree diversity data from national forest inventories.

    Finally, we compared both of these data sets to a long-standing health survey that has interviewed approximately 65,000 Canadians each year for over two decades.

    We found that living in a neighbourhood with higher than average bird diversity increased reporting of good mental health by about seven per cent. While living in a neighbourhood with higher than average tree diversity increased good mental health by about five per cent.

    Importance of urban birds and trees

    The results of our study, and those of others, show a connection between urban bird and tree diversity, healthy ecosystems and people’s mental well-being. This underscores the importance of urban biodiversity conservation as part of healthy living promotion.

    Protecting wild areas in parks, planting pollinator gardens and reducing pesticide use could all be key strategies to protect urban wildlife and promote people’s well-being. Urban planners should take note.




    Read more:
    Eco-anxiety: climate change affects our mental health – here’s how to cope


    We’re at a critical juncture: just as we are beginning to understand the well-being benefits of birds and trees, we’re losing species at a faster rate than ever before. It’s estimated that there are three billion fewer birds in North America compared to the 1970s and invasive pests will kill 1.4 million street trees over the next 30 years.

    By promoting urban biodiversity, we can ensure a sustainable and healthy future for all species, including ourselves.

    Rachel Buxton receives funding from Natural Sciences and Engineering Research Council of Canada, National Institutes of Health, and Environment and Climate Change Canada.

    Emma J. Hudgins received funding from the Natural Sciences and Engineering Research Council of Canada and the Fonds de Recherche du Québec – Nature et Technologies for this work. She currently receives funding from Plant Health Australia.

    Stephanie Prince Ware has received funding from the Canadian Institutes of Health Research.

    ref. Want to build healthier cities? Make room for bird and tree diversity – https://theconversation.com/want-to-build-healthier-cities-make-room-for-bird-and-tree-diversity-235379

    MIL OSI – Global Reports

  • MIL-OSI Canada: Investing in the big impact of small business

    Source: Government of Canada News

    Federal support will help four Nova Scotia companies boost productivity and reach new markets

    October 24, 2024 · Dartmouth, Nova Scotia · Atlantic Canada Opportunities Agency (ACOA)

    From October 20th to 26th during Small Business Week, Canadians across the country are celebrating the crucial role that local companies play in strengthening our communities and economies. Small- and medium-sized businesses are powerful engines for Canada’s economy, employing 64% of Canadian workers. The Government of Canada is investing to help position four Nova Scotia companies for growth and success.

    Accelerating Nova Scotia companies with diverse offerings, common goals

    Today, the Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for ACOA, announced repayable contributions totalling $1,486,305 for four companies looking to accelerate their growth and reach new markets.

    A $721,305 contribution to Outdoor Fit Exercise Systems will enable the company to install cutting-edge powder paint coating equipment at its Dartmouth production facility. The upgrade will streamline operations, more than double the production capacity of its outdoor fitness equipment parts, and pave the way for a new business venture called Versa Coatings, a powder coating division serving businesses across Atlantic Canada.

    A $315,000 contribution to Tony’s Meats Ltd. will help it add manufacturing and shipping equipment to produce more value-added products, more efficiently. The new lineup of tools at its Antigonish site includes a smokehouse that will reduce overall electrical consumption and new technologies that will grow its product lineup to appeal to new clients.

    A $300,000 contribution to Sydney’s Ethical Swag Inc., Cape Breton’s only Certified B Corporation, will help it launch sales and marketing activities for its sustainable promotional products. Digital marketing, customer support improvements, and a build-out of its technology platform will help it reach new markets, empowering companies across Canada and the United States to choose eco-friendly advertising solutions.

    A $150,000 contribution to Ravens Rest Retreat Limited in Moose Brook will add a new multipurpose cottage with accessible washrooms and a kitchen, as well as a health and wellness area with a gazebo, hot and cold tubs, and a sauna. The additions will support new activities like yoga retreats and Indigenous cuisine and storytelling, encouraging longer stays and attracting guests during the colder months.

    Today’s announcement demonstrates the Government of Canada’s commitment to helping small businesses diversify, compete, and grow, creating jobs and boosting the economy. 

    MIL OSI Canada News

  • MIL-OSI: Foresight Financial Group to Become Region’s Largest Locally Headquartered Bank

    Source: GlobeNewswire (MIL-OSI)

    WINNEBAGO, Ill., Oct. 24, 2024 (GLOBE NEWSWIRE) — Foresight Financial Group today announced that, in partnership with each of its six bank brands including German American State Bank, State Bank of Herscher, Lena State Bank, State Bank of Davis, Northwest Bank, and State Bank, that it will be consolidating its six bank charters into one, making it the region’s largest locally headquartered and operated bank in Winnebago County, while maintaining its market share dominance in Stephenson County. Each of the six charters will retain their unique market brand names post consolidation.

    This is the next step in the organization’s ongoing work to enhance operational efficiencies across the Foresight family, streamlining processes, eliminating duplication, and standardizing best practices to deliver enhanced value to the customers and communities it serves. In addition, customers will benefit from a significant increase in lending limits for borrowers, increased depth in staffing resources, and an even greater access to cutting edge treasury management, commercial, and agricultural lending services and professionals. This move makes Foresight Financial Group the region’s largest locally headquartered and locally managed bank with assets in excess of $1.6 billion as of September 30, 2024. All six brands and their customers will benefit from the collective capabilities of Foresight while maintaining their local approach to service.

    “By streamlining our processes through charter consolidation, we’ll be able to bring offerings to our markets more quickly and reinvest in the products, technologies, and services that best meet the needs of our customers,” said Peter Morrison, CEO of Foresight Financial Group. “As a locally headquartered and managed bank, decisions will still be made by those bankers that have been in our communities for years and who possess the firsthand knowledge of local market conditions that is so vital to customer success.”

    “We’ve been focused on creating operational efficiencies across the Foresight family and have already realized significant benefits for our banks and customers,” said Jeff Hultman, President of Foresight Financial Group. “The charter consolidation is the next step in that process, which will reduce workloads on the individual banks, allowing them to focus on the personal connections in their local communities that are central to their success.”

    Each of the Foresight Bank brands will maintain their local identities and staff. Our goal is to retain our current talent while making minimal adjustments to positions to fully align all six charters into one; customers will continue to work with the people they know and trust. Each bank will continue to meet the needs of its community and customers with the added benefit of the standards, procedures, policies, and best practices from across the Foresight family.

    The charter consolidation will begin in late 2024 and the operational consolidation of the charters will be complete in 2025.

    About Foresight Financial

    Foresight Financial is a multi-bank holding company located in Northern Illinois, Its subsidiary community banks include Northwest Bank of Rockford, State Bank in Freeport, State Bank of Davis, German-American State Bank, German Valley, Lena State Bank, and the State Bank of Herscher. Foresight’s common stock is listed on the “OTCQX” market under the trading symbol FGFH.

    Forward-Looking Statements

    When used in this communication, the words “believes,” “expects,” “likely”, “would”, and similar expressions are intended to identify forward-looking statements. The Company’s actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company’s markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which the Company or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of “critical accounting policies”; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the Company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.

    FOR INFORMATION CONTACT:                      Peter Q. Morrison
    CEO
    815-847-7500
          Todd J. James
    CFO
    815-847-7500
             

    The MIL Network

  • MIL-OSI: TopLine Credit Union Foundation Awards $36,500 in Scholarships

    Source: GlobeNewswire (MIL-OSI)

    MAPLE GROVE, Minn., Oct. 24, 2024 (GLOBE NEWSWIRE) — In its tenth year, TopLine Credit Union Foundation has awarded a total of $36,500 in scholarship money to 35 TopLine members who are continuing their education, and $1,500 in scholarship funds to support post-secondary educational needs and goals of students in Nigeria through partnership with African Education and Health Initiative (AFEDHI), a local non-profit organization with a vision to assist African students with access to education, books and school supplies.

    TopLine Credit Union Foundation received 127 applications. Any TopLine member pursuing post-secondary education by attending a college or university, graduate school, or a 2-to-4-year community, vocational or technical college in the fall of 2024 was eligible.

    Scholarship applicants needed to complete a one-page application form and submit an essay (500 words or less) that answered the question: “Discuss a hobby, interest, or passion that is important to you. How has this influenced your personal growth and academic journey?”

    As one of our scholarship recipients commented, “Unlike most twin sisters, I grew up not just as a sibling, but as a caregiver. Her ability to navigate the world was often reliant on my hearing, and I was responsible for filling her in on our learning in school. From an early age, I became my sister’s advocate and ally. I witnessed firsthand the challenges she faced in navigating a predominantly hearing world. My sister’s journey has shown me the significance of empathy, understanding, and hard work, ultimately steering me toward my aspiration to become an audiologist. I hope to create a space where people feel heard, empowered, and understood, much like I’ve strived to do for my sister.”

    “It’s was so rewarding to read all the personal stories written by applicants based on the influences they have experienced to help them along their personal growth and academic journeys,” said Vicki Roscoe Erickson, President, TopLine Credit Union Foundation. “Our foundation board had an extremely difficult decision of just selecting 35 scholarship recipients, and we celebrate their dedication and drive as they embark on their learning journey.”

    TopLine Credit Union Foundation, guided by its mission of “working within the community to build a better tomorrow,” will continue to support the cooperative spirit of “people helping people” by living the mantra – to care, connect and contribute in the communities they serve.

    Scholarship recipients will be recognized with a reception at the credit union, on TopLine Credit Union Foundation’s website page and on their Facebook page.

    TopLine Credit Union Foundation, a 501(c)(3) non-profit organization, is dedicated to providing members with an array of financial education opportunities and counseling for members of all ages, awarding scholarships, contributing to community charitable organizations and sponsoring other community give-back efforts. Since inception in 2014, TopLine Credit Union Foundation has given out $175,000 in scholarship monies to assist with the affordability of post-secondary education. Donations are tax deductible to the extent allowed by law. For further information visit www.TopLinecu.com/foundation, email Foundation@TopLinecu.com, call 763-391-9494, or stop by any branch location or write to: 9353 Jefferson Hwy, Maple Grove, MN 55369. Federal Tax ID # is 46-4335752.

    CONTACT:
    Vicki Roscoe Erickson
    President, TopLine Credit Union Foundation
    verickson@toplinecu.com
    763.391.0872

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/70b1950d-0cdb-42e0-a7bf-213f59799195

    The MIL Network

  • MIL-OSI United Kingdom: Council sets out plans to raise pupil attainment

    Source: Scotland – City of Perth

    The Council’s Learning and Families Committee approved the Raising Attainment Strategy for 2024-2027 when it met on Wednesday (Oct 23).

    This strategy builds upon the successes of the previous strategy from 2020-2023 and focuses on four main priorities:

    • Improvement in attainment, particularly in literacy and numeracy.
    • Closing the attainment gap between the most and least disadvantaged.
    • Improvement in health and wellbeing of children and young people.
    • Enhancement of employability skills and sustained, positive school leaver destinations.

    The strategy employs a range of measures and highlights several key achievements from 2023/24.

    These include 333 more A-C passes being achieved by Perth and Kinross pupils at National 5. The pass rate for National 5s in Perth and Kinross is also higher than both the Scottish average and comparator local authorities.

    Councillors also heard how the poverty-related attainment gap for primary pupils in P1, P4 and P7 has improved by 1% for reading and writing; grown by 1% in listening and talking and remained at the same level for numeracy, compared to last year`s figures.

    Councillors also heard how significant strides have been made in supporting children and young people affected by poverty and those who are care-experienced.

    The Scottish Attainment Challenge Funding Update 2024 highlights targeted improvement activities in literacy, numeracy, and health and wellbeing, aimed at closing the poverty-related attainment gap.

    The report outlines the measures implemented through Strategic Equity Funding (SEF), Pupil Equity Funding (PEF), and Care Experienced Children and Young People’s Funding (CECYPF).

    Learning and Families Convener Councillor John Rebbeck said: “We want every child and young person in Perth and Kinross to have the best start in life, which is why closing the attainment gap is a priority.

    “There have been significant successes made in Perth and Kinross to closing the attainment gap and it is important we recognise that good work.

    “But we will continue to strive to close the gap further and use Pupil Equity Funding, and other sources of funding, appropriately to make this happen.”

    MIL OSI United Kingdom

  • MIL-OSI Australia: Tax return due date looms for more than 1.5 million taxpayers

    Source: Australian Department of Revenue

    The Australian Taxation Office (ATO) is urging Australians who have not yet lodged their income tax returns to lodge, or get on the books with a registered tax practitioner before 31 October, to avoid potential penalties.

    ATO Assistant Commissioner Rob Thomson said over 9.4 million Australians have already lodged, with a further 1.5 million self-preparer taxpayers expected to need to lodge this year.

    ‘The ATO is receiving a spike of lodgments, with an average of almost 60 thousand individuals lodging each day in October as the deadline approaches. In fact, we’ve had over 1 million lodgments so far this month alone.’

    ‘Firstly, a reminder to those who’ve done the right thing and deliberately held off finalising their tax return until pre-filled information is available, now’s the time to log back into the App or myTax, finalise and press lodge.’

    ‘For those who haven’t yet started, it’s not scary or complicated. People with simple affairs will find that you should be able to lodge your tax return in the time it takes to cook a frozen pizza,’ Mr Thomson said.

    ‘We’re all guilty of sometimes leaving things to the last minute, but taking half an hour this weekend to complete your tax return will save you time and money in the long run, as penalties can apply if you lodge late.’

    If you need a helping hand, or have more complex tax affairs, you may like to engage with a registered tax practitioner. To check whether an agent is registered, visit the Tax Practitioners’ Board RegisterExternal Link.

    ‘If you’re going to engage a registered tax professional and you’re not already on their books, you should do this before 31 October,’ Mr Thomson said.

    Additionally, the Tax Help program is a free and confidential service open to people who earn $60,000 or less each year and have simple tax affairs. The program is available until the end of October.

    Rob’s reminders

    1. Prefill: ‘The ATO has now pre-filled tax returns with information from most banks, employers, government agencies and private health insurers – all you need to do is check it and add anything that’s missing.’
    2. What you can claim: ‘Make sure you’re claiming what you’re entitled to – and nothing you’re not with our 40 occupation and industry specific guides on the ATO website.’
    3. Record keeping: ‘When you claim a deduction, you need to have a record to prove it, usually a receipt. Remember that a credit card or bank statement usually isn’t enough on its own. The ATO app is a good way to keep all your receipts in one place.’
    4. Payment due date: ‘Regardless of when you lodge your tax return, your due date for payment of a tax bill is 21 November 2024. Those who lodge through a registered tax practitioner may have longer.’

    Lodgments by state and territory*

    • NSW: 2.81 million
    • VIC: 2.34 million
    • QLD: 2 million
    • WA: 1.1 million
    • SA: 650,000
    • TAS: 210,000
    • ACT: 170,000
    • NT: 90,000

    *Approximate values as at 17 October 2024

    Notes to journalists

    MIL OSI News

  • MIL-OSI Australia: VIPER Taskforce execute 27 warrants and lay Commonwealth charge of directing a criminal organisation

    Source: Australian Department of Revenue

    Detectives from the VIPER and Lunar taskforces have this morning charged eight people with Commonwealth offences for their part in directing and assisting an organised crime syndicate.

    It will be alleged the syndicate was leasing stores, employing staff as supervisors, store managers and couriers and commencing deliveries under the guise of operating the stores as legitimate gifts and confectionary stores, while selling only illicit tobacco and related products.

    Investigators have obtained transactional records which reflect the syndicate earned over $30 million in a 12-month period through the sale of illicit tobacco in these stores.

    Supported by the Australian Federal Police (AFP), the Australian Taxation Office (ATO), Australian Border Force’s (ABF) Illicit Tobacco Taskforce and Therapeutic Goods Administration (TGA), officers today executed more than 27 search warrants across Victoria as part of an ongoing investigation targeting serious organised crime in the illicit tobacco market.

    With assistance from Taskforce Lunar, the Armed Crime Squad, the Illicit Firearms Squad, Financial Crime Squad, Criminal Proceeds Squad, Joint Organised Crime Taskforce, Echo Taskforce, Cybercrime Squad, Joint Anti-Child Exploitation Team, Wyndham, Knox, Hobsons Bay, Echuca, Cobram, Ararat, Northern Grampians and Geelong Crime Investigation Units, Westgate Divisional Response Unit, Eastern Region Crime Squad and State Highway Patrol, search warrants were executed from 5am this morning at tobacco stores, warehouses and residential addresses statewide.

    Three industrial properties in Truganina were searched, as well as residential addresses in Truganina, Hoppers Crossing (3), Glen Waverley, Lara, Grovedale, Footscray and Mount Cottrell, and tobacco stores in Herne Hill, Bell Park, Grovedale, Werribee (2), Dallas, Kensington, Boronia, Ararat (3), Kyabram, Echuca (2) and Yarrawonga.

    A 25-year-old Hoppers Crossing man was arrested at Melbourne Airport just before 6:00 am.

    He has since been charged with the Commonwealth offence of directing the activities of a criminal organisation, possess tobacco products with the intent of defrauding the revenue (Customs Act 1901), possess proceeds of crime and sell/distribute e-cigarettes.

    He will appear at Melbourne Magistrates’ Court later today.

    Directing the activities of a criminal organisation carries a maximum penalty of 15 years in prison.

    Four other people were arrested and have been charged with the same offences.

    They include:

    • a 26-year-old Hoppers Crossing man, who will appear at Melbourne Magistrates’ Court later today
    • a 21-year-old Hoppers Crossing man, who will appear at Melbourne Magistrates’ Court later today
    • a 50-year-old Grovedale woman, and
    • a 51-year-old Glen Waverley man, both of whom have been bailed to appear at Melbourne Magistrates’ Court on Monday (28 October).

    Five other people were arrested, including:

    • a 25-year-old Hoppers Crossing man, who was arrested in Ararat and charged with support a criminal organisation and illicit tobacco offences
    • a 46-year-old Ararat man, who was arrested in Ararat and charged with support a criminal Organisation and illicit tobacco offences
    • a 38-year-old Tarneit man who was arrested attempting to remove stock from a retail outlet in Werribee. He was charged with support a criminal organisation and illicit tobacco offences
    • a 50-year-old Mount Cotterill man was arrested in relation to illicit tobacco and possession of commercial cigarette manufacturing equipment located. He was released and is expected to be charged on summons, and
    • a 21-year-old Yarrawonga man was interviewed and released, he is also expected to be charged on summons.

    During the warrants, police seized a Lamborghini Coupe and Range Rover from the Hoppers Crossing address, at least 600,000 illicit tobacco sticks, over 75 kgs of loose-leaf tobacco and a significant quantity of cash from the residential addresses as well as utilities and vans investigators will allege were used in the distribution of illicit tobacco.

    Searches of the tobacco stores are still underway with total seizures to be confirmed.

    The investigation commenced in December 2023 to specifically target and disrupt the trade of illicit tobacco and e-cigarettes linked to this organised crime syndicate.

    Over 130 members were involved in today’s activities, including the entirety of the VIPER Taskforce office.

    Victoria Police continues to support local councils and the Victorian Department of Health who have responsibility for tobacco and vape enforcement and compliance.

    Detectives continue to work alongside external agencies such as the ABF, Australian Criminal Intelligence Commission, AFP, TGA, ATO and interstate counterparts.

    Victoria Police has identified a number of state, national and global organised crime syndicates involved in the illicit tobacco conflict.

    These syndicates are comprised of personnel from Middle Eastern organised crime groups and outlaw motorcycle gangs who are then engaging local networked youth and youth gangs to carry out the offending.

    Investigators continue to appeal to anyone, especially store owners and staff, who have information about these incidents and who is responsible to come forward.

    Anyone with information about these incidents or with further information about serious and organised crime linked to the illicit tobacco trade is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential crime report at www.crimestoppersvic.com.auExternal Link

    Victoria Police quotes

    Crime Command Assistant Commissioner Martin O’Brien said:

    “Organised crime syndicates and their serious offending linked to the infiltration of the tobacco industry remain a top priority for Victoria Police.

    Those involved have the potential and the propensity to commit serious acts of violence and given their complete disregard for the safety of others, pose a serious risk to the community. Their criminality cannot be tolerated.

    The disruption of this syndicate today will have a substantial impact on the illicit tobacco trade. These were significant players who we believe were directing the activity of a criminal organisation, turning a huge profit at the expense of others.

    We have said a number of times that Victoria Police is focused on targeting syndicate leaders, directors, facilitators and organisers. That remains critical for us, and we are doing absolutely everything we can to bring this criminality to an end and to make involvement in illicit tobacco as hostile a proposition as possible for organised crime groups.”

    ABF quotes

    Assistant Commissioner Tony Smith said:

    “ABF continues to work closely with our partners to disrupt and deter attempts by criminal syndicates seeking to profit from the illicit tobacco trade in Australia.

    We remain committed to seizing illicit tobacco and dismantling these supply chains which we know criminals use to make immense profits as well as to fund a whole host of other nefarious criminal enterprises.”

    ATO quotes

    Acting Assistant Commissioner Justin Clarke said:

    “Today’s whole of government response has been a successful step forward in addressing the Victorian tobacco dispute. These arrests and seizures show our commitment to stamping out illicit tobacco and removing it from our communities.

    With the help of our partners, we continue to support coordinated efforts to detect, disrupt, and dismantle these organised crime syndicates who use profits from illicit tobacco to fund other serious illegal activities.

    Organised crime costs Australians around $60 billion each yearExternal Link and the illicit tobacco trade not only takes away vital funding from essential community services, but it also disadvantages small businesses who do the right thing.”

    MIL OSI News

  • MIL-OSI Australia: Medium and emerging private groups tax performance program

    Source: Australian Department of Revenue

    About the program

    We use a risk-based approach to:

    • identify groups with higher risk and consequence tax reporting
    • support them in meeting tax obligations.

    By doing this we strengthen community confidence that they are paying the right amount of tax.

    Information and findings we gather from working with medium and emerging private groups improves our awareness of the population and risk environment. It also complements our development of a range of differentiated response strategies.

    Through the medium and emerging private groups tax performance program, we have improved our knowledge and understanding of:

    • business operating environments
    • tax risks and issues that are present or may be emerging.

    We have learned from our work across the different industries and risks over the past few years. We are well-positioned and capable to respond to existing and emerging risks and issues with effective strategies and tailored activity.

    Who is covered by the program

    The program covers both:

    • private groups linked to Australian resident individuals who, together with their associates, control wealth between $5 million and $50 million
    • businesses with an annual turnover of more than $10 million, that are not public or foreign owned and are not linked to a high wealth private group.

    Our focus is on engaging with:

    • larger and higher risk private groups and entities
    • private groups experiencing rapid growth, increasing foreign links, looking to expand offshore or where controlling individuals are transitioning to retirement
    • foreign investment focused on acquiring high value assets in Australia and structured wealth extraction
    • private groups with higher risk issues or concerns.

    The program doesn’t cover private groups or businesses that are already part of the:

    We use data-matching and analytic models to identify wealthy individuals and link them to associated entities. We consider the group of entities together.

    The private group approach helps us understand your business better. It enables us to provide a tailored experience, including focusing on specific potential areas of risk and entities within the group.

    For more, read about the:

    How we tailor our approach to you

    We continue to improve our understanding of medium and emerging business and the environment within which you operate.

    To support our understanding, we use sophisticated data and analytics techniques. We use intelligence and insights gathered through our engagements to identify trends, priority and emerging risks specific to medium and emerging private groups.

    Through our increased understanding, we tailor our approach and develop strategies to support you to identify and mitigate tax risks within your private group.

    We’ll work with you by:

    Types of engagement you can expect

    Our engagement with you may include:

    • review of areas of correct tax reporting risk specific to your business
    • pre-lodgment compliance agreement for commercial deals and restructure events
    • leveraged engagements for areas of potential risk that are generally more easily resolved.

    We will work with you to resolve any concerns or issues that arise from our risk modelling and analysis of data from:

    Reviews

    We will streamline our engagement with you for simple issues and potential risks. We may require an extensive review for complex matters involving multiple issues and risks.

    Our reviews focus on specific risks and issues. In most cases, we aim to complete our reviews within 180 days.

    Reviews generally focus on issues that can be resolved by getting more information from you. For example, this could be completing a specific action such as lodging an outstanding return or schedule.

    We monitor many potential risks and issues. Some focus areas include:

    • where we have identified income from third-party information attributable to you but did not see this income reported on your tax returns or activity statements
    • where an entity in your group has not lodged tax returns or activity statements resulting in a shortfall of tax paid
    • late or incorrect lodgments of tax returns, schedules or activity statements
    • instances where you do not appear to have enough income to cover your expenses or to acquire the assets that you own
    • inappropriately accessing tax concessions, credits and offsets that you are not entitled to
    • large, one-off, or unusual transactions, including the transfer or shifting of wealth
    • trust structures
    • wealth extraction, including Division 7A, where we seek verification of complying loan agreements, genuine repayments and minimum yearly repayments.

    We encourage and support good tax governance as it helps taxpayers to meet their taxation obligations. However, it’s not a risk factor we consider in the program reviews.

    GST integrated reviews

    We also undertake goods and services tax (GST) integrated reviews as part of the program.

    These reviews consider potential GST risks or issues. We will request information and documentation from you in support of your GST treatment.

    Characteristics of medium and emerging groups

    Medium and emerging groups have certain characteristics and attributes. See more about the:

    Overall demographics

    There are around 273,000 private groups that are part of the program. These groups report holding approximately $3.2 trillion in net assets and contributing more than $61.3 billion in tax revenue.

    A typical medium and emerging group consists of 5 entities with a mix of:

    • companies
    • trusts
    • other entities.

    The profile of a typical medium and emerging group includes:

    • 5 entities consisting of 2 companies, 2 trusts and another entity such as a self-managed super fund
    • individuals
    • a group head aged 63 years old
    • 14 employees
    • total income of $651,000
    • net wealth of $7.9 million
    • income tax of $104,300
    • net GST of $18,200
    • pay as you go (PAYG) withholding of $92,600.

    Typical medium and emerging group

    Groups by location

    The population is mainly located on the east coast (over 84%) and distributed across Australia as follows:

    • New South Wales – 106,519
    • Victoria – 81,984
    • Queensland – 39,213
    • Western Australia – 22,206
    • South Australia – 15,393
    • Australian Capital Territory – 3,583
    • Tasmania – 3,324
    • Northern Territory – 948

    Medium and emerging groups by location

    Groups by entity type

    The program includes more than 1.4 million entities. Group structures may be complex and some groups may have many associated entities.

    There may be a combination of various entity types with companies, partnerships and trust structures operating within and outside of consolidated groups.

    The program includes:

    • 470,453 companies
    • 475,267 individuals
    • 328,870 trusts
    • 151,334 super funds
    • 61,959 partnerships.

    Medium and emerging groups by entity type

    Groups by industry

    A wide range of different industries are represented in the population. The 5 main industries represent more than half of businesses.

    The industries include:

    • financial and insurance services – 26.2%
    • other industries – 22.8%
    • professional, scientific and technical services – 9.5%
    • construction – 6.6%
    • agriculture, forestry and fishing – 6.4%
    • health care and social assistance – 6.3%
    • rental, hiring and real estate services – 5%
    • retail trade – 4.3%
    • wholesale trade – 3.7%
    • manufacturing – 3.4%
    • accommodation and food services – 1.9%
    • transport, postal and warehousing – 1.5%
    • other services – 1.2%
    • administrative and support services – 1.2%

    Medium and emerging groups by industry type

    How much tax they pay

    The population:

    • owns $3.2 trillion in net assets
    • earns $1.10 trillion in total income
    • pays over $61.3 billion income tax
    • pays over $18.9 billion in net GST
    • employs more than 7.5 million people, paying $42.4 billion in PAYG withholding.

    Tax governance and reporting

    Effective tax governance means having oversight frameworks with clear processes and procedures. This supports decision making and ensures you meet your tax and super obligations.

    When we engage with you as part of the medium and emerging program, we don’t consider or review your tax governance processes. However, good tax governance does help support taxpayers to meet their taxation obligations.

    To ensure your risks are mitigated and to improve certainty that the group is paying the right amount, you need:

    • good tax governance
    • internal controls
    • business processes and procedures.

    Clearly defining and documenting the roles and responsibilities within a group and sharing them with advisors is a key governance requirement.

    To ensure correct tax treatment and reporting, it is important to maintain:

    • oversight and independent approval of the preparation of tax returns and BAS
    • segregation of duties with review
    • checking of material transactions.

    Well-designed control systems and reporting frameworks with good governance, checking and review are key to:

    • ensuring accurate treatment
    • record keeping
    • identifying errors or mistakes and correcting them.

    In broad terms a business with a focus on ensuring risk and issue mitigation will apply:

    • well-designed and documented corporate and tax governance frameworks
    • internal controls and compliance practices appropriate to the size and complexity of the business
    • systems that respond to business growth and increasing complexity through improvement in governance focus and sophistication, internal controls, recording and reporting
    • use of automated and integrated business systems that are regularly reviewed for suitability and accurate performance
    • suitably capable and skilled personnel with regular development and ongoing responsibility to understand, manage and report tax obligations
    • segregation of duties across reporting and approval functions
    • regular review and reconciliation of business systems reporting
    • review of the tax treatment of large, unusual and irregular transactions
    • established procedures for monitoring tax reporting and correcting mistakes and errors
    • ensuring that large, unusual and irregular transactions including those between group members and associates, are properly recorded and included in tax returns
    • seeking advice as business grows and for the treatment of new, unusual, one-off and large transactions.

    For more information you can:

    For more support, see:

    MIL OSI News

  • MIL-OSI Australia: The Tax Institute’s National GST Conference: ATO update for public and multinational businesses

    Source: Australian Department of Revenue

    Rebecca Saint, Deputy Commissioner, Public Groups and
    Virginia Gogan, Senior Director Public Groups
    Speech at The Tax Institute’s National GST Conference
    17 October 2024
    (Check against delivery)

    Introduction

    Thank you to the Tax Institute for having us at this conference. It’s a pleasure to come speak to you all today.

    It’s been 5 years since responsibility for GST compliance for large business moved to Public Groups. The move has allowed us to better combine our expertise in GST with our deep insights into large business.

    Supported by Government funding to improve assurance and compliance in the large market, we embarked on an ambitious program to generate long term change in the market. We’ve taken on a number of difficult long-term systemic issues, such as governance (including systems and controls), apportionment issues related to financial supplies and product classification.

    Whilst there is still a way to go, we are encouraged by the positive results and we are starting to envisage the future world of GST compliance for large business beyond what you see today. We will cover some of this in our presentation today.

    We will cover:

    • where we are at in our engagement with the market for GST
    • our observations on the GST risk focus area in this market, and
    • our future directions for large business compliance programs going forward.

    The importance of large business tax compliance

    Firstly, it’s useful to set the scene with some key facts and figures.

    The significant monetary contribution and position of influence of large business in the tax system shapes the way we think about compliance for this market. Understanding these drivers also helps in understanding the rationale as to why Government directs funding to specific programs in this market.

    Public and multinational businesses are the largest contributors to the GST system.

    In the 2023 financial year, GST revenue was around 14% of the ATO’s overall net tax collections. In the same year, over 60% of the $77.3 billion in net GST liabilities collected by the ATO were from public and multinational businesses.

    This is reflected in PG populations with:

    • top 100 taxpayers making up 13% of net GST liabilities or $10 billion
    • top 1000 taxpayers making up 37% or $28.6 billion, and
    • the Medium and Emerging population at 11% or $8.9 billion.

    The numbers demonstrate the important role of large business in the level of GST contribution and Government budgets. The heavy reliance on large business for revenue collection is not unique to GST and we see similar reliance for corporate tax. However, the settings of GST mean the concentration of GST collection differs to that income tax. For income tax, corporate tax is highly concentrated in large mining and resource companies, the big banks and a few retailers or telcos. In comparison we see GST as being more spread across the Top 100 and Top 1,000 populations with the bulk of collections coming from the wholesale, retail and services sectors – miners’ exports are GST-free, and banks are mostly input taxed.

    We often talk about the role that large business play beyond their significant revenue contribution. The perception of compliance by large business supports the health of the tax system as a whole. The willingness of individual and small business taxpayers to voluntarily meet their obligations is indirectly impacted by whether they consider there is fairness in the system.

    Whilst public scrutiny more commonly focusses on the income tax contribution and compliance of large business, ultimately perceptions of tax compliance generally are important. At one level GST compliance is more observable to the broader community, with many engaging directly with GST treatments through roles in different parts of the supply chain and consumers engaging with marketing of GST free supplies. This provides both positive and downside opportunities for business.

    Proving GST compliance – justified trust

    Evolution of the justified trust program

    A key platform for our engagement with public and multinational businesses is through the Justified Trust assurance programs. These programs are important in giving us high levels of confidence that we know which large businesses are meeting their Australian income tax and GST obligations. This gives Government and the community confidence that the right amount of tax is being paid by large business.

    We are specifically funded to undertake the justified programs with GST being funded by the GST Compliance Program and income tax being funded through the Tax Avoidance Taskforce.

    Under the assurance programs, the ATO provides positive assurance that taxpayers are paying the right amount of tax, rather than confirming that certain risks do not arise. Whilst the pillars of justified trust are the same for income tax and GST, our compliance stance for the taxes differs. We will explore some of these differences when discussing the programs.

    Top 100

    The Top 100 program covers the largest public and multinational businesses. Top 100 taxpayers are under continual monitoring for income tax. However, for GST, for those taxpayers that have met the governance requirements and achieved at least overall medium assurance, we will generally adopt a periodic review stance. The exception being for high-risk industries such as financial services who may have more intensive engagement.

    What this means for the vast bulk of GST remitters, is that if they meet the necessary requirements in their initial assurance review, our justified trust engagement will be more limited until a refresh year. However, we will continue to monitor their affairs at some level.

    We have now completed an initial assurance review for one or more GST reporters in around 88% of the top 100 economic groups. This means that the vast bulk of Top 100 taxpayers could already be benefiting from periodic review stances. There may be opportunity to evolve this approach further, which we will talk about later in this presentation.

    We have recently re-focussed our efforts in the Top 100 program to real time engagement. The program has always been intended to work this way – given our focus is on prevention before correction, however we have not lived up to this ideal.

    The shift to real-time is designed to provide greater tax certainty for Top 100 taxpayers and the ATO. Transactions and business changes will be considered closer to the time of event and may include both income tax and GST considerations. This may include both income tax and GST. Compliance teams will make decisions as to what if any further investigation or verification may be required. Pre-lodgment Compliance Reviews (PCRs) will be on strict time-lines, to prevent gap or open years arising. We have made changes to our internal work processes to make this happen.

    The shift to real time will come with mutual obligations for business and the ATO. Top 100 taxpayers will have agreed disclosure frameworks that set out the principles of what and the timing of disclosures throughout the year. For GST, there are also specific disclosure requirements for certain industries given the GST risks that arise – such as for large banks.

    Top 1000

    The Top 1000 program assures the largest public and multinational businesses outside of the Top 100. It is an integrated review where we assure both income tax and GST as part of a combined assurance review.

    We have completed 735 reviews for GST across the various phases of the program. 395 entities have received a GST assurance rating, with 59 of these receiving an assurance rating for a second time. The increasing number of second time reviews, particularly for income tax, is giving us insights to the ‘stickiness’ of tax assurance ratings and improvements for big business.

    Due to differences in timing as to when the programs commenced, income tax is ahead of GST. Positively, we have seen most taxpayers either maintain or improve their ratings. We have observed similar positive trends for GST although the numbers are much less. This insight is what gives us confidence that we can take a more tailored lighter approach to assurance for taxpayers that have already demonstrated high levels of compliance.

    In March this year, we announced a recalibration of the entities that would be included in the program. We originally used a $250 million total business income threshold to determine who came within the program. However, over the 8 years since commencement we have observed considerable growth in population. As a result, the Top 1000 program has been covering more than 1000 entities which was not enabling us to achieve a 4-year rolling review cycle.

    Going forward, we will be applying an assurance approach to taxpayers that are the largest 1000 outside of the Top 100 population. Based on our current analysis, for the 2025 financial year, the largest 1000 had a turnover of approximately $350 million.

    We now also differentiate between two different groups in the Top 1000. About a third of the largest 1000 taxpayers exceed $1 billion in turnover. Given the significance of that level of economic activity, these entities will be classed as our ‘significant taxpayers’, and we will apply a different approach to assure them. The remaining entities will form our ‘general taxpayer’ population.

    Differentiating within the population allows us to take different approaches in our assurance program. It also provides opportunities for us to consider opportunities for different services for ‘significant taxpayers’, given their size and contribution.

    In addition to our Justified Trust program, we have risk-based engagements on specific GST risks. These risk-based engagements are important to ensure we continue to target the highest priority GST risks for public and multinational business, including for entities outside our Top 100 and Top 1000 programs.

    Program results – Latest Top 100 and Top 1000 findings for GST

    Each year we publish a raft of information to provide insights about the tax performance and compliance of large business. This includes the findings reports for our Justified Trust programs, with the latest reports for 2024 being published in September.

    At the highest level, this is a good news story. For GST, in both programs, we have observed an increase in the number of taxpayers obtaining high assurance.

    For Top 100 taxpayers:

    • 30% attained overall high assurance, a significant increase from the figure of 23% as at the end of June 2023
    • 63% attained medium assurance, which has fallen from 70% as at the end of June 2023, and
    • overall low assurance ratings have remained stable at 2%.

    For Top 1000 taxpayers:

    • 37% of taxpayers attained an overall high assurance outcome at their most recent review, which is also a significant increase from the figure as at end of June last year of 31%. This is due to 44% of taxpayers who were reviewed in 2024 achieving an overall high assurance rating.
    • 59% of taxpayers attained medium assurance (down from 65%) and we only have 4% of the population with a low assurance rating, which remains relatively constant compared to previous years. This usually occurs where we see an absence of evidence of a governance framework, combined with a low assurance rating for the GAT, and specific issues of concern with low assurance or red flags.
    • At the conclusion of the review, if we have identified areas of concern, we will either provide recommendations for the taxpayer to undertake (including a client next action, where we typically make recommendations and require the taxpayer to advise us of what they have done to address our recommendations) or we may consider intervention through a formalised ATO next actions product. In 2024, approximately 2% of taxpayers were escalated for a further ATO action for GST via a risk review or audit.

    We are also seeing marked improvements in GST governance. We rate GST governance using stage ratings. At least a stage 2 rating, which means your documented GST control framework exists and has been designed effectively, is required to obtain overall high assurance.

    For Top 100 taxpayers:

    • 56% attained a stage 2 or stage 3 rating for GST governance – which is an increase from 45% as at 30 June 2023.
    • Stage 3 was achieved by 9% of GST reporters reviewed, meaning that the documented GST control framework is both designed and operating effectively in practice.

    For Top 1000 taxpayers:

    • 42% attained a stage 2 or 3 rating, which was an increase from 35% in 2023. This positive shift reflects that for those reviewed in 2024, 50% achieved a stage 2 or 3 rating for GST governance.
    • Governance continues to be the main reason that taxpayers are prevented from achieving an overall high assurance rating in the Top 1000 program, with 40% of those achieving medium assurance prevented from high assurance solely due to their stage 1 governance rating.

    We also continue to see improvements in GST Analytical Tool, or GAT ratings, with the majority of taxpayers being able to reconcile the accounting and GST results and explain any differences with reference to objective evidence. A stage 2 or 3 GAT rating was attained by 86% of taxpayers in the Top 100. In the Top 1000, the majority of taxpayers achieved a high assurance rating for the GAT, with 74% of taxpayers able to reconcile the accounting and GST results and able to explain any differences with reference to objective evidence.

    The GAT is a useful tool for taxpayers to check how their various streams of economic activity are treated for GST purposes and have confidence in relation to their GST outcomes. Taxpayers are encouraged to embed the GAT as part of their own governance processes.

    Errors and amendments

    Notwithstanding improvements in governance and tax control frameworks, we continue to see a significant rate of voluntary disclosures of GST errors with the root cause being deficiencies in governance controls and systems.

    In the Top 1000, about 40% of combined assurance reviews carried out in 2024 involved a voluntary disclosure for GST – either at the notification of the review, or throughout the review. For the voluntary disclosures we received in our Top 1000 reviews in the 2024 financial year, almost 30% of those taxpayers had previously made a voluntary disclosure when they had been subject to a prior review in our Top 1000 program, with some of those being disclosures for the same issue previously identified (with penalties being applied as appropriate).

    In the Top 100, about 44% of the completed reviews had issues or concerns with correct reporting of GST obligations. The amounts of these errors were commonly not material in dollar terms. However, in some cases the amounts of errors were large and, in a small number of cases, failure to take reasonable care penalties applied due to the taxpayer’s circumstances.

    Where errors are identified, we focus on understanding how the error occurred and reviewing the taxpayer’s processes and procedures to make sure they are designed effectively to prevent the error from recurring.

    We acknowledge even taxpayers that have a strong governance framework in place will have errors from time to time. Whilst a voluntary disclosure may be an indication of a good governance process to detect errors, the timing of these indicate that it is not necessarily happening as a result of the governance processes in place, but rather as a result of our review notification.  In some cases, we also see recurrent errors being made.

    We see best practice processes where businesses have a process for detecting and remediating errors on a regular basis, not just as a result of ATO contact. We encourage all businesses to embed such processes. If the ATO is to lessen the intensity through the justified trust program, we need to be confident that businesses have got appropriate processes in place to address these issues.

    As you would be aware, the Commissioner has published draft guidance on Division 93 of the GST Act earlier this year, which is about the four-year time limit on claiming input tax credits or fuel tax credits.

    You should actively consider Division 93 when periods are close to the expiry of the 4-year entitlement period, given that putting in an amendment request is not sufficient for input tax credits to be taken into account in an assessment. That is, the amendment request actually needs to be processed by the ATO within the 4-year limit.

    If you are submitting an amendment request for periods close to the expiry of the 4-year period, I encourage you to proactively consider the application of Division 93 in the circumstances. We strongly recommend that you not wait until year 4 and do sweeps much more frequently to reduce the potential impact.

    If you are making the voluntary disclosure to one of our case teams, it will take our case teams some time to consider the requests. We also may require evidence to verify the entitlement to the additional input tax credits. We also appreciate that in many cases taxpayers may wish to engage with the team prior to finalising amendments to protect against penalties, which is a practice we encourage – but you should be conscious of, and proactively raise, any periods that are close to expiry of the four-year period. Again, we encourage you not to leave this to the last year.

    In circumstances where taxpayers seek to change long standing positions to uplift GST recovery, you can expect this will attract additional scrutiny – for instance where an apportionment methodology is changed for periods to increase the rates claimed. You can expect that this will likely take us longer to review and may require further engagement and information from you. You should factor this into your timeframes.

    Just as the Division 93 Miscellaneous tax ruling raises issues for taxpayers to consider, there are also aspects that the ATO will need to consider in our compliance activities. In those cases where there may be additional liabilities and additional input tax credits may also arise, there may be a reluctance of taxpayers to provide an extension to the period of review. This is perhaps understandable if the taxpayer is at risk of the ATO making adjustments, and for those periods there is no legal basis for the Commissioner to give the taxpayer any GST credits that they would otherwise have been entitled to as a result of the audit adjustment. In these cases, both the ATO and the taxpayer will need to co-operate to ensure timely and efficient resolution of issues.

    GST risk focus areas

    Financial services and insurance

    We continue to have a focus on financial services and insurance to ensure compliance with the specific provisions that apply in this area. The types of issues we have recently seen that cause us concern are:

    • ‘Set and forget’ approaches to apportionment models without consideration of whether the method is fair and reasonable, or in relation to claiming reduced input tax credits based on general ledger codes, without conducting periodic self-review transactional analysis.
    • We’ve also observed that while financial institutions generally are within the green zone (low risk) of PCG 2019/8, we continue to have concerns with a small number who adopt high risk positions in their apportionment methodologies, including continual use of retrospective amendments for earlier periods to uplift their claims.
    • Lack of understanding and controls to identify reverse charge transactions is also a concern. In this regard we highlight our guidance on the ATO’s expectations around controls to ensure correct application of these provisions and examples of best practice that can be adopted.
    • For super funds, an example of an issue we have seen is the inappropriate allocation of administrator costs to investment activities leading to excessive input tax recovery.
    • For general insurers, we have seen issues with a lack of controls around decreasing adjustments – for instance to ensure these are only claimed on taxable policies where the insured does not have full entitlement to input tax credits.
    • We continue to see errors where large businesses fail to undertake the financial acquisitions threshold test monthly, and do not correctly recover input tax credits on costs related to significant and unusual transactions such as takeovers.

    Generally, we encourage taxpayers in the financial services and insurance industry to review the relevant practical guidance we have issued. This includes considering the use of the GST data tests for the financial services and insurance industry as part of reviewing the correctness of GST reporting – these are also the ones we incorporate into our reviews.

    Touching on one point raised earlier in the conference, we do want to urge caution around market views on the application of the appeal decision of the Full Federal Court in Commissioner of Taxation v Hannover Life Re of Australasia Ltd.

    That appeal, in relation to overheads, was decided on the particular unchallenged facts and evidence before the Court. The legal analysis adopted in respect to considering the application of Division 11 remains consistent with the ATO’s conventional understanding of relevant legal precedent on the topic. In particular:

    • it is necessary to consider the precise nature of the relationship between an acquisition and related supplies when determining creditable purpose
    • the fact that an input taxed supply is interdependent, and cannot be made without a GST-free or taxable supply also being made, or that other supplies may arise automatically as a result of the making of an input taxed supply, will not of itself determine the creditable purpose of the relevant acquisition.

    The ATO does not consider that any published guidance or advice need be changed in light of the decision. That is the ATO considers the outcome results in a ‘business as usual’ outcome. For instance, we do not agree there is any broader impact in relation to apportionment for credit cards, or for super funds. We encourage taxpayers to read our Decision Impact Statement for the decision.

    Taxpayers will continue to need to consider the extent to which particular acquisitions relate to input taxed supplies, and to the extent apportionment is required, their apportionment models should appropriately adhere to the relevant legal principles in determining any applied extent of credible purpose rate. To try and emulate the conclusions of the Hannover case in relation to ‘overheads’, without consideration of the relationship between particular acquisitions and supplies, may result in an overclaiming of GST.

    The ATO does not consider that the decision offers any judicial justification for any substantially new apportionment method for ‘overheads’. Accordingly, taxpayers should be wary of any claim that the case can permit a material uplift in GST recovery, even if their circumstances have some similarities to the Hannover case. Such an approach may risk a shortfall occurring.

    We also encourage taxpayers to take note of our recent guidance (PDF 107KB) This link will download a file around the eligibility of super funds and investor-directed portfolio services investment platforms to claim reduced input tax credits on adviser fees.

    Product classification

    As our colleague Andrea Wood discussed earlier today, the ATO has been working to provide public advice and guidance on priority food and health product classification issues, with the aim of providing certainty and stability to the industry.

    We recently published a further draft of our Determination on food of a kind marketed as a prepared meal. This incorporates a practical compliance approach to assist taxpayers in determining whether or not certain salad products are food of a kind marketed as a prepared meal. This incorporates threshold tests that refer to objective attributes involving size and composition.

    We’ve developed this approach to address industry feedback that more practical guidance is needed to provide certainty on how to correctly classify these products. We have released the guidance on prepared meals in draft because we recognise this is a new approach and we are seeking industry feedback. This forms part of a layered approach to provide certainty to the market – including principled public advice and guidance, and detailed food list updates that cover more specific categories of products.

    There has been significant work and consultation in providing ATO public advice and guidance to ensure clarity on priority issues involving food and health products – including the guidance on combination foods, and sunscreen products, and upcoming guidance on formula products.

    We have also published a webpage that we will regularly update with emerging GST issues for food and health products, to promote consistency and give the industry early insights into practical issues we are observing.

    The product classification cluster has also published a self-review guide and checklist to assist taxpayers in the industry to undertake regular self-reviews of their GST classification, which I strongly encourage all industry participants to use as part of reviewing the GST classification of their food and health products.

    We expect that in future we will undertake further compliance activity to ensure consistent adoption of the views in ATO guidance once finalised – likely in the form of targeted mailouts focusing on manufacturers and wholesalers.

    We work to ensure consistency across the market, and encourage taxpayers to review our recent guidance to ensure they have appropriate governance controls to ensure correct classification of products.

    Property, construction and retirement villages

    We have had a focus on ensuring a good understanding of what risks arise in the property, construction and retirement village segments of the public and multinational market, through both our assurance programs and risk-based engagements.

    In particular we have had a recent focus on build to rent developments – we have observed that taxpayers are treating the relevant supplies as being input taxed in line with our expectations, and the main issues arising have involved adjustments (for instance, failure to make adjustments under Division 135 when a property is acquired as a GST-free going concern).

    We will continue to engage with taxpayers across a variety of business models – including purpose built student accommodation, retirement villages, accommodation providers and hybrid property types.

    Correct reporting

    In addition to our assurance programs, we engage in a targeted way where we potential correct reporting risks may arise (for instance, in the gambling industry under Division 126 and the sharing economy), or in relation to refunds that may be high risk.

    While we have observed some improvements following the release of the relevant legislative instrument in 2023, we continue to have concerns about situations where recipient created tax invoices are issued without appropriate agreements, or issued to the incorrect supplier or to suppliers who are no longer GST-registered, or in some cases were never GST-registered. These issues can lead to GST shortfalls.

    International GST

    Another one of our risk focus areas is ensuring that Australian GST obligations are being met by offshore entities making supplies to Australian consumers.

    Since the introduction of the laws that require offshore supplies of digital products and services, and low value imported goods, to register and remit GST on these supplies, we have collected $7.8 billion in revenue. In the 2024 financial year, we collected $1.6 billion in revenue, which was a 14.7% increase from the prior year.

    We currently have 2,685 non-residents registered under these measures, which is also a 13.8% increase from the prior year.

    We are making better use of data, particularly banking data, to improve our holistic understanding of the offshore population and tailoring our risk treatment strategies to obtain greater assurance that offshore businesses who fall within the Australian GST regime are registered, are lodging, and paying the correct amount of GST.

    Our leadership in OECD Working Party 9 (WP9) on Consumption Tax allows us to play a significant role in global collaboration to better understand the impact of global digitalisation and develop administrative best practice to address fraud and non-compliance in digital trade. We will continue to leverage our strong domestic and global relationships to support multilateral arrangements that enable the exchange of crucial GST information such as payment data, enhanced intelligence sharing, and compliance insights through international administrative cooperation. This will allow us to bridge critical data gaps and more efficiently and effectively manage international GST risks.

    The role of advisors

    I want to touch on the role that advisors play in the system. The Commissioner in his keynote address earlier today recognised the important role that advisors play in supporting taxpayers to meet their tax obligations.

    The ATO has been focussed on the role of advisors in supporting large business. This includes initiatives such as the Large Market Advisor Principles, which we facilitated by working closely with the big 4 advisory firms. These principles provide an objective and transparent basis against which firms, their clients and the community, can be confident that the firms are not engaged in marketing or promotion of tax avoidance or other high-risk arrangements. All firms offering tax advisory services may choose to adopt the principles and we actively encourage firms to do so.

    The ATO’s focus is not limited to advisors in the large-market and we have dedicated programs in other business lines. We work closely with other lines and co-ordinate our actions in relation to advisors working across markets. For us this is predominantly the Private Wealth line.

    Most tax professionals act in a way that supports the integrity of the tax system. However, we’ll act quickly where we detect advisors who undermine the integrity of the system or facilitate non-compliance by large business. Whilst we are not the regulator of the tax profession, we have teams with responsibility for monitoring and addressing advisor behaviours.

    Ultimately, we’re interested in tax risk. In this respect, we are agnostic as to which advisor a business may choose. However, if an advisor is directly linked to possible facilitation and promotion of tax schemes or is influencing their clients to adopt high risk tax positions, we will take action. This may include seeking the client list of the advisor and using that as a basis for determining the targets of our compliance activity. In this way, we can shut down schemes more quickly and effectively.

    An important part of our approach to large business is to provide transparency to taxpayers on our risk parameters. This includes working with the tax profession to explain areas of concern at an early stage, to support them in providing appropriate advice to taxpayers. This enables taxpayers to make informed decisions about their levels of compliance risk. Our goal is to only have taxpayers entering into disputes with us where they know what our position is and have made a conscious decision to operate contrary to it.

    We accept that there will be differences of opinion on the operation of the law. However, we expect advisors to clearly articulate the risk of dispute with the ATO to their clients when providing advice. This is consistent with the principles in the Large Market Advisor Principles and other professional obligations such as the recent Revisions to the Code Addressing Tax Planning and Related ServicesExternal Link released by the International Ethical Standards Board for AccountantsExternal Link.

    Behaviours we have seen that cause us concern for GST include practitioners who advise clients to claim refunds without appropriate evidence to substantiate the claims or which are contrary to published ATO views without making their client fully aware of the tax technical and tax administrative risks of that course, and even in some cases, that it might not align with (or be directly contrary to) the client’s tax governance and tax risk policies. We note that commonly such arrangements are associated with retrospective input tax credit claims, with the adviser’s fees being calculated as a percentage of GST refund received. 

    Whilst not illegal, these business models bring high levels of risk for businesses. We have long been concerned with the exercise of “grave digging”. We have an even greater level of concern when there is a lack of substantiation and taxpayers seemingly are not advised of the legal and compliance risk associated with the activities.

    We have also observed issues with independence requirements of initiatives in our justified trust program. In an attempt to help businesses, we introduced an initiative that allowed businesses to engage an independent agent to conduct data testing as an alternative to the ATO doing this. Engaging an advisor on a contingency fee basis in these circumstances represents a clear conflict of interest and cannot be independent. We have since updated our guidance to reflect this.

    The solution is not to put in place arrangements that seemingly separate the ‘grave digging’ activity from the independent data testing engagement. We will not accept these engagements as being independent either.

    We want to actively support the vast bulk of advisors that are doing the right thing and prevent those operating in the grey space from gaining a commercial advantage. We recognise the important work that tax professionals do in supporting large business GST compliance, and we value the strong relationships we have with the profession. This includes your engagement with us in the development of our approaches via consultation. We will continue to invest in growing this partnership.

    Introducing the supplementary annual GST return

    As our programs gain maturity and we continue to see the embedding of positive behaviours, in particular improved governance and systems controls, being embedded in business we are able to move toward a new phase for our justified trust programs.

    A key part of our vision for future engagement with the market is the introduction of the supplementary annual GST return. We recently announced the introduction of this return following consultation with the Large Business Stewardship Group and other stakeholders.

    The return allows us to collect information from business that allows us to more readily identify changes in business and GST positions. As we have again noted today, governance and systems is the key risk for most businesses in the large market. Having observed improvements in this aspect, are considering moving to a more targeted risk-based type approach for suitable taxpayers. However, we first need to be confident that the relevant standards are maintained.

    The return will allow us to monitor this without having to conduct one on one engagements for all taxpayers. The good news for highly compliant businesses is that if you maintain your standard and lodge the return, you can reduce the likelihood of intensive justified trust reviews. For some in the Top 1000 program, you may not be selected for a justified trust review for GST.

    The return is straightforward to complete and targeted at understanding how taxpayers have actioned recommendations from our earlier review, and key updates on governance and GST compliance for the year. It will also effectively give a single view of GST risk for the entity in a similar way to how the Reportable Tax Position Schedule gives a view of key corporate tax risks to the organisation and the ATO.

    Information requested

    We have recently provided detailed guidance and a copy of the return on our website.

    The way the supplementary annual GST return is designed to work, where we obtain a baseline level of assurance over a taxpayer as part of our assurance programs, and we can maintain the level of confidence that we have in the taxpayer’s investment in correct reporting and GST governance through the supplementary annual GST return, we can use this to tailor our future engagement.

    There are five parts to the return:

    • how the entity has actioned recommendations, areas of low assurance or red flags outlined by the ATO in their most recent GST assurance review (including any subsequent interactions with us)
    • whether the entity has maintained or increased their level of GST governance, and any material business changes or material systems changes impacting their GST control framework since their last GST assurance review
    • the reconciliation between the entity’s audited financial statements and annualised business activity statements
    • whether the entity has taken any material uncertain GST positions in the period – this includes positions which are about as likely to be correct as incorrect, even if they are reasonably arguable, positions contrary to an ATO public ruling or other ATO public advice and guidance, contrary to a private ruling, or to which an ATO Taxpayer alert or moderate or high risk rating under a Practical Compliance Guideline apply
    • and finally, whether the entity has identified any material GST errors in the period and how these have been rectified, and whether the entity has claimed any material amounts of input tax credits in the period that were referable to earlier periods due to a change in GST treatment.

    How we will use the information

    For Top 100 taxpayers, we will use the information to:

    • monitor your GST disclosures and outcomes in the intervening 3 years between assurance reviews, and
    • inform the scope and intensity of our GST assurance reviews, including refresh reviews.

    As we complete some more refresh reviews for this population over the coming 12 months, we will be able to better assess whether positive behaviours, and in particular improvements to governance, remain embedded within business. Assuming this level of confidence increases, we see opportunity for an even greater role for return in determining the level of our investment in the justified trust program in this population.

    For Top 1000 taxpayers:

    • Under our differentiated approach to Combined Assurance Reviews, we’ll assess the responses to the returns to determine the level of intensity for the next GST assurance review.
    • This may result in a less intensive GST assurance review or we may decide that a GST assurance review is not required, where the following requirements are met:
      • the taxpayer has obtained an overall medium or high assurance rating for GST
      • a stage 2 or 3 GST governance rating in their most recent assurance review
      • there are no unresolved ATO or client next actions, and
      • where the information provided in the return enables us to maintain confidence that their investment in GST governance is maintained and that GST is correctly reported.
    • Taxpayers who obtained an overall low GST assurance rating or a stage 1 GST governance rating will be subject to a GST assurance review when selected under our Combined Assurance Review program.

    Timing of lodgment

    To help support full implementation of this new requirement, we will undertake a pilot of the return with a small number of Top 100 and Top 1000 taxpayers as part of their assurance reviews. This will enable us to test the usability of the questions as part of their assurance reviews prior to the broader roll-out. If you are part of this group, we will reach out to you soon.

    All taxpayers who received a GST assurance review report by 30 June 2024 will need to lodge annually from the 2025 financial year. The key due dates for the first lodgments for the 2025 financial year include 21 August 2025 for December balancers, and 21 February 2026 for June balancers.

    You’ll be required to lodge a Supplementary annual GST return for the 2024–25 financial year if you received one of the following on or before 30 June 2024:

    • Top 100 GST Assurance Report
    • Top 1,000 Combined Assurance Review report with a GST assurance rating
    • Top 1,000 GST Streamlined Assurance Review.

    We will have a direct communication campaign to notify those who need to lodge. I encourage you to read our webpage material and to raise any questions with us at SAGR@ato.gov.au.

    Moving forward, as we assure additional taxpayers under our programs, they will be required to lodge a return starting from the financial year following the financial year you received your GST assurance report. The introduction of the return emphasises the benefits of obtaining higher assurance ratings in the initial assurance review, as in combination with the information provided annually, this puts the entity in the best position for streamlined future engagement with us for GST.

    Conclusion

    Reflecting on the last five years, the ATO and large business have made substantial progress in being able to demonstrate and improve GST compliance. The ATO has invested heavily in key initiatives that provide greater and better targeted tax certainty for large businesses (including in relation to governance and tax frameworks). We are observing strong positive signs (and in some cases improvements) of compliance. As a result, we are starting to envisage the future of GST compliance for large business, one where the intensity and in some case frequency of our justified trust reviews can be lessened. However, for this to occur we need objective evidence of high levels of compliance, we need to be confident these levels can be sustained, and we need information that will allow us to monitor ongoing GST performance. We continue to encourage large business to help us achieve this.

    MIL OSI News

  • MIL-OSI Australia: eInvoicing-enabled entities

    Source: Australian Department of Revenue

    These Australian Government entities are registered on the Peppol network. They appear on the Peppol Directory along with hundreds of state, territory and local government organisations, and thousands of other Australian businesses who can receive eInvoices.

    If you supply to any of the entities listed below and can send eInvoices you may be paid faster. For more information visit Getting PaidExternal Link on the Department of Finance’s website or talk to your contract manager in the Government entity about any specific requirements.

    Australian Government entities able to receive eInvoices

    ABN

    Entity name

    73 147 176 148

    Administrative Review Tribunal

    80 246 994 451

    Aged Care Quality and Safety Commission

    50 802 255 175

    Asbestos and Silica Safety and Eradication Agency

    92 661 124 436

    Attorney-General’s Department

    26 331 428 522

    Australian Bureau of Statistics

    34 864 955 427

    Australian Centre for International Agriculture Research

    54 488 464 865

    Australian Charities and Not-for-profits Commission

    97 250 687 371

    Australian Commission on Safety and Quality In Health Care

    55 386 169 386

    Australian Communications and Media Authority

    94 410 483 623

    Australian Competition & Consumer Commission

    11 259 448 410

    Australian Crime Commission

    84 425 496 912

    Australian Digital Health Agency

    21 133 285 851

    Australian Electoral Commission

    17 864 931 143

    Australian Federal Police

    19 892 732 021

    Australian Film Television & Radio School

    63 384 330 717

    Australian Financial Security Authority

    81 098 497 517

    Australian Fisheries Management Authority

    69 405 937 639

    Australian Government Solicitor

    47 996 232 602

    Australian Human Rights Commission

    31 162 998 046

    Australian Industrial Chemicals Introduction Scheme

    63 257 175 248

    Australian Institute of Criminology

    64 001 053 079

    Australian Institute of Family Studies

    65 377 938 320

    Australian Maritime Safety Authority

    33 020 645 631

    Australian National Audit Office

    13 059 525 039

    Australian Office of Financial Management

    56 253 405 315

    Australian Organ & Tissue Donation and Transplantation Authority

    79 635 582 658

    Australian Prudential Regulation Authority

    99 470 863 260

    Australian Public Service Commission

    61 321 195 155

    Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)

    35 931 927 899

    Australian Renewable Energy Agency

    35 201 451 156

    Australian Research Council

    86 768 265 615

    Australian Securities & Investments Commission

    37 467 566 201

    Australian Security Intelligence Organisation

    22 323 254 583

    Australian Signals Directorate

    72 581 678 650

    Australian Skills Quality Authority

    67 374 695 240

    Australian Sports Commission

    67 250 046 148

    Australian Submarine Agency

    51 824 753 556

    Australian Taxation Office

    11 764 698 227

    Australian Trade and Investment Commission

    32 770 513 371

    Australian Transaction Reports & Analysis Centre (AUSTRAC)

    65 061 156 887

    Australian Transport Safety Bureau

    64 909 221 257

    Australian War Memorial

    92 637 533 532

    Bureau of Meteorology

    21 075 951 918

    Cancer Australia

    44 808 014 470

    Civil Aviation Safety Authority

    43 669 904 352

    Clean Energy Finance Corporation

    72 321 984 210

    Clean Energy Regulator

    60 585 018 782

    Climate Change Authority

    41 640 788 304

    Comcare Australia

    64 703 642 210

    Commonwealth Grants Commission

    34 190 894 983

    Department of Agriculture, Fisheries and Forestry

    68 706 814 312

    Department of Defence

    69 289 134 420

    Department of Defence Army & Air Force Canteen Service

    12 862 898 150

    Department of Education

    96 584 957 427

    Department of Employment and Workplace Relations

    61 970 632 495

    Department of Finance

    47 065 634 525

    Department of Foreign Affairs & Trade

    83 605 426 759

    Department of Health and Aged Care

    33 380 054 835

    Department of Home Affairs

    74 599 608 295

    Department of Industry, Science and Resources

    86 267 354 017

    Department of Infrastructure, Transport, Regional Development, Communications and the Arts

    52 997 141 147

    Department of Parliamentary Services

    36 342 015 855

    Department of Social Services

    18 526 287 740

    Department of the House of Representatives

    49 775 240 532

    Department of the Parliamentary Budget Office

    23 991 641 527

    Department of the Senate

    92 802 414 793

    Department of the Treasury

    23 964 290 824

    Department of Veterans’ Affairs & the Repatriation Commission and the Military Rehabilitation and Compensation Commission

    96 257 979 159

    Digital Transformation Agency

    13 051 694 963

    Director of National Parks

    99 696 833 561

    Domestic, Family and Sexual Violence Commission

    12 212 931 598

    eSafety Commissioner

    93 614 579 199

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    Federal Court of Australia

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    National Archives of Australia

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    National Emergency Management Agency

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    National Gallery of Australia

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    National Health and Medical Research Council

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    Old Parliament House

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    Professional Services Review

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    Rural Industries Research & Development Corporation

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