BOISE CASCADE Co 10-Q

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Understanding Our Financial Information This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and related notes in "Item 1. Financial Statements" of this Form 10-Q, as well as our 2021 Form 10-K. The following discussion includes statements regarding our expectations with respect to our future performance, liquidity, and capital resources. Such statements, along with any other nonhistorical statements in the discussion, are forward-looking. These forward-looking statements include, without limitation, any statement that may predict, indicate, or imply future results, performance, or achievements and may contain the words "may," "will," "expect," "believe," "should," "plan," "anticipate," and other similar expressions. All of these forward-looking statements are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in "Item 1A. Risk Factors" in our 2021 Form 10-K, as well as those factors listed in other documents we file with the Securities and Exchange Commission (SEC). We do not assume an obligation to update any forward-looking statement. Our future actual results may differ materially from those contained in or implied by any of the forward-looking statements in this Form 10-Q. Background Boise Cascade Company is a building products company headquartered in Boise, Idaho. As used in this Form 10-Q, the terms "Boise Cascade," "we," and "our" refer to Boise Cascade Company and its consolidated subsidiaries. Boise Cascade is a large, vertically-integrated wood products manufacturer and building materials distributor. We have two reportable segments: (i) Wood Products, which primarily manufactures engineered wood products (EWP) and plywood; and (ii) Building Materials Distribution (BMD), which is a wholesale distributor of building materials. Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and industrial applications. For more information, see Note 10, Segment Information, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q. Executive Overview We recorded income from operations of $405.6 million during the three months ended March 31, 2022, compared with income from operations of $205.3 million during the three months ended March 31, 2021. In our Wood Products segment, income increased $93.1 million to $190.1 million for the three months ended March 31, 2022, from $97.1 million for the three months ended March 31, 2021, due primarily to higher EWP and plywood sales prices, offset partially by higher wood fiber and other manufacturing costs. In our BMD segment, income increased $105.7 million to $225.9 million for the three months ended March 31, 2022, from $120.2 million for the three months ended March 31, 2021, driven by a gross margin increase of $133.6 million, resulting from improved gross margins across substantially all product lines. The margin improvement was offset partially by increased selling and distribution expenses and general and administrative expenses of $25.5 million and $1.6 million, respectively. These changes are discussed further in "Our Operating Results" below. We ended first quarter 2022 with $922.7 million of cash and cash equivalents and $346.0 million of undrawn committed bank line availability, for total available liquidity of $1,268.7 million. We had $444.8 million of outstanding debt at March 31, 2022. We generated $173.8 million of cash during the three months ended March 31, 2022, as cash provided by operations was offset partially by capital spending, dividends paid on our common stock, and tax withholding payments on stock-based awards. A further description of our cash sources and uses for the three month comparative periods are discussed in "Liquidity and Capital Resources" below. Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. Current demographics in the United States (U.S.), as well as continuation of work-from-home practices by many in the economy, continue to create a favorable demand environment for new residential construction. We expect demand to remain strong during 2022, with April 2022 Blue Chip Economic Indicators consensus forecasts for 2022 single- and multi-family housing starts in the U.S. of 1.65 million units compared with actual housing starts of 1.60 million in 2021, as reported by the U.S. Census Bureau. In addition, limited new and existing home inventory availability and the age of the U.S. housing stock will continue to provide a favorable 21 Table of Contents backdrop for residential construction and repair-and-remodel spending. Although we believe that current U.S. demographics support the forecasted level of housing starts, and many national home builders are reporting strong near-term backlogs, labor shortages and supply induced constraints on residential construction activity may continue to extend build times and limit activity. In addition, the pace of residential construction and repair-and-remodeling activity may be affected by the economic impact of the cost of building materials and construction, housing affordability, increasing mortgage interest rates, wage growth, prospective home buyers' access to financing, and consumer confidence, as well as other factors. As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of commodity products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Our first quarter 2022 financial results were favorably impacted by higher commodity wood products pricing compared to pricing in the same period last year, as well as rising prices for EWP and general line products. Current composite panel and lumber prices have declined by approximately 24% and 15% from levels at the end of first quarter 2022. We expect future commodity product pricing and commodity input costs to be volatile in response to capacity restoration and industry operating rates, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. EWP and general line products have historically experienced limited price volatility, and we expect the firm pricing environment to continue during 2022. Factors That Affect Our Operating Results and Trends Our results of operations and financial performance are influenced by a variety of factors, including the following: • the commodity nature of a portion of our products and their price movements, which are driven largely by industry capacity and operating rates, industry cycles that affect supply and demand, and net import and export activity; • general economic conditions, including but not limited to housing starts, repair-and-remodeling activity, light commercial construction, inventory levels of new and existing homes for sale, foreclosure rates, interest rates, unemployment rates, household formation rates, prospective home buyers' access to and cost of financing, and housing affordability, that ultimately affect demand for our products; • the highly competitive nature of our industry; • declines in demand for our products due to competing technologies or materials, as well as changes in building code provisions; • the duration and magnitude of impacts of the ongoing COVID-19 pandemic and related variants, including the impact of any government mandates relating to vaccines and testing; • disruptions to information systems used to process and store customer, employee, and vendor information, as well as the technology that manages our operations and other business processes; • material disruptions and/or major equipment failure at our manufacturing facilities; • labor disruptions, shortages of skilled and technical labor, or increased labor costs; • the need to successfully formulate and implement succession plans for key members of our management team; • product shortages, loss of key suppliers, and our dependence on third-party suppliers and manufacturers; • the cost and availability of third-party transportation services used to deliver the goods we manufacture and distribute, as well as our raw materials; • cost and availability of raw materials, including wood fiber and glues and resins; • our ability to successfully and efficiently complete and integrate acquisitions; • concentration of our sales among a relatively small group of customers, as well as the financial condition and creditworthiness of our customers; 22 Table of Contents • impairment of our long-lived assets, goodwill, and/or intangible assets; • substantial ongoing capital investment costs, including those associated with acquisitions, and the difficulty in offsetting fixed costs related to those investments; • our indebtedness, including the possibility that we may not generate sufficient cash flows from operations or that future borrowings may not be available in amounts sufficient to fulfill our debt obligations and fund other liquidity needs; • restrictive covenants contained in our debt agreements; • compliance with data privacy and security laws and regulations; • the impacts of climate change, and related legislative and regulatory responses intended to reduce climate change; • cost of compliance with government regulations, in particular environmental regulations; • the enactment of tax reform legislation; • exposure to product liability, product warranty, casualty, construction defect, and other claims; • fluctuations in the market for our equity; and • the other factors described in "Item 1A. Risk Factors" in our 2021 Form 10-K. 23 Table of Contents Our Operating Results The following tables set forth our operating results in dollars and as a percentage of sales for the three months ended March 31, 2022 and 2021: Three Months Ended March 31 2022 2021 (millions) Sales $ 2,326.3 $ 1,821.3 Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 1,729.9 1,450.4 Depreciation and amortization 20.5 19.5 Selling and distribution expenses 146.7 120.9 General and administrative expenses 26.1 25.3 Other (income) expense, net (2.5) (0.1) 1,920.7 1,616.1 Income from operations $ 405.6 $ 205.3 (percentage of sales) Sales 100.0 % 100.0 % Costs and expenses Materials, labor, and other operating expenses (excluding depreciation) 74.4 % 79.6 % Depreciation and amortization 0.9 1.1 Selling and distribution expenses 6.3 6.6 General and administrative expenses 1.1 1.4 Other (income) expense, net (0.1) — 82.6 % 88.7 % Income from operations 17.4 % 11.3 % 24 Table of Contents Sales Volumes and Prices Set forth below are historical U.S. housing starts data, segment sales volumes and average net selling prices for the principal products sold by our Wood Products segment, and sales mix and gross margin information for our BMD segment for the three months ended March 31, 2022 and 2021. Three Months Ended March 31 2022 2021 (thousands) U.S. Housing Starts (a) Single-family 265.3 255.4 Multi-family 129.5 102.4 394.8 357.8 (thousands) Segment Sales Wood Products $ 558,944 $ 432,335 Building Materials Distribution 2,111,833 1,634,777 Intersegment eliminations (344,495) (245,796) Total sales $ 2,326,282 $ 1,821,316 Wood Products (millions) Sales Volumes Laminated veneer lumber (LVL) (cubic feet) 4.6 4.4 I-joists (equivalent lineal feet) 65 72 Plywood (sq. ft.) (3/8" basis) 317 303 Wood Products (dollars per unit) Average Net Selling Prices Laminated veneer lumber (LVL) (cubic foot) $ 26.40 $ 19.00 I-joists (1,000 equivalent lineal feet) 1,877 1,319 Plywood (1,000 sq. ft.) (3/8" basis) 689 556 (percentage of Building Materials Distribution sales) Building Materials Distribution Product Line Sales Commodity 52.2 % 55.4 % General line 29.1 % 28.9 % Engineered wood 18.7 % 15.7 % Gross margin percentage (b) 18.0 % 15.1 % _______________________________________ (a) Actual U.S. housing starts data reported by the U.S. Census Bureau. (b) We define gross margin as "Sales" less "Materials, labor, and other operating expenses (excluding depreciation)." Substantially all costs included in "Materials, labor, and other operating expenses (excluding depreciation)" for our BMD segment are for inventory purchased for resale. Gross margin percentage is gross margin as a percentage of segment sales. 25 Table of Contents Sales For the three months ended March 31, 2022, total sales increased $505.0 million, or 28%, to $2,326.3 million from $1,821.3 million during the three months ended March 31, 2021. As described below, the increase in sales was driven by the changes in sales prices and volumes for the products we manufacture and distribute with single-family residential construction activity being the key demand driver of our sales. In first quarter 2022, U.S. housing starts increased 10%, with single-family starts up 4% from the same period in 2021. Average composite lumber and average composite panel prices for the three months ended March 31, 2022 were 26% and 23% higher, respectively, than in the same period in the prior year, as reflected by Random Lengths composite lumber and panel pricing. Wood Products. Sales, including sales to our BMD segment, increased $126.6 million, or 29%, to $558.9 million for the three months ended March 31, 2022, from $432.3 million for the three months ended March 31, 2021. The increase in sales was driven by higher sales prices for I-joists and LVL (collectively referred to as EWP) of 42% and 39%, respectively, resulting in increased sales of $36.4 million and $34.3 million, respectively. The increase in EWP pricing was due to realizations of previously announced price increases and the expiration of certain temporary price protection arrangements. Higher sales prices for plywood of 24% resulted in increased sales of $42.1 million. In addition, sales volumes for plywood and LVL increased 4% and 6%, respectively, resulting in increased sales of $7.6 million and $5.4 million, respectively. Price increases for laminated beam and OSB rimboard combined increased sales by $10.1 million. These increases were offset partially by a 9% decrease in sales volumes for I-joists, resulting in decreased sales of $8.2 million. Building Materials Distribution. Sales increased $477.1 million, or 29%, to $2,111.8 million for the three months ended March 31, 2022, from $1,634.8 million for the three months ended March 31, 2021. Compared with the same quarter in the prior year, the overall increase in sales was driven by sales price increases of 29%, as sales volumes were flat. By product line, commodity sales increased 22%, or $195.9 million; general line product sales increased 30%, or $142.4 million; and sales of EWP (substantially all of which are sourced through our Wood Products segment) increased 54%, or $138.8 million. Costs and Expenses Materials, labor, and other operating expenses (excluding depreciation) increased $279.5 million, or 19%, to $1,729.9 million for the three months ended March 31, 2022, compared with $1,450.4 million during the same period in the prior year. In our Wood Products segment, materials, labor, and other operating expenses increased due to higher per-unit costs of logs of approximately 9% compared with first quarter 2021, as well as increased other manufacturing costs. However, materials, labor, and other operating expenses as a percentage of sales (MLO rate) in our Wood Products segment decreased by 990 basis points, which was primarily due to higher EWP and plywood sales prices, resulting in improved leveraging of wood fiber costs, labor costs, and other manufacturing costs. In BMD, the increase in materials, labor, and other operating expenses was driven by higher purchased materials costs as a result of higher product prices, compared with first quarter 2021. However, the BMD segment MLO rate improved 290 basis points compared with first quarter 2021 due primarily by improved gross margin percentages across substantially all product lines, driven by an increasing price environment during first quarter 2022. Depreciation and amortization expenses increased $1.0 million, or 5%, to $20.5 million for the three months ended March 31, 2022, compared with $19.5 million during the same period in the prior year. The increase was due primarily to purchases of property and equipment. Selling and distribution expenses increased $25.7 million, or 21%, to $146.7 million for the three months ended March 31, 2022, compared with $120.9 million during the same period in the prior year, due primarily to higher employee-related expenses, including base pay increases, special bonuses, and sales and incentive compensation of $17.4 million, as well as higher shipping and handling costs of $5.2 million. In addition, travel and entertainment expenses and occupancy expenses increased $1.3 million and $1.2 million, respectively. General and administrative expenses increased $0.8 million, or 3%, to $26.1 million for the three months ended March 31, 2022, compared with $25.3 million for the same period in the prior year. The increase was due primarily to higher employee wages and travel and entertainment expenses of $1.1 million and $0.5 million, respectively, offset partially by lower officer incentive compensation accruals of $0.6 million. For the three months ended March 31, 2022 other (income) expense, net, was $2.5 million of income, which primarily included earn-out income related to a previous asset sale in our Wood Products segment. 26 Table of Contents Income From Operations Income from operations increased $200.4 million to $405.6 million for the three months ended March 31, 2022, compared with $205.3 million for the three months ended March 31, 2021. Wood Products. Segment income increased $93.1 million to $190.1 million for the three months ended March 31, 2022, compared with $97.1 million for the three months ended March 31, 2021. The increase in segment income was due primarily to higher EWP and plywood sales prices. These increases in segment income were offset partially by higher wood fiber costs and other manufacturing costs. Building Materials Distribution. Segment income increased $105.7 million to $225.9 million for the three months ended March 31, 2022, from $120.2 million for the three months ended March 31, 2021. The increase in segment income was driven by a gross margin increase of $133.6 million, resulting from improved gross margins across substantially all product lines compared with first quarter 2021. The margin improvement was offset partially by increased selling and distribution expenses and general and administrative expenses of $25.5 million and $1.6 million, respectively. Corporate. Unallocated corporate expenses decreased $1.6 million to $10.4 million for the three months ended March 31, 2022, from $12.0 million for the same period in the prior year. The decrease was due primarily to lower officer incentive compensation accruals. Other Change in fair value of interest rate swaps. For information related to our interest rate swaps, see the discussion under "Interest Rate Risk and Interest Rate Swaps" of Note 2, Summary of Significant Accounting Policies, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q. Income Tax Provision For the three months ended March 31, 2022 and 2021, we recorded $98.9 million and $51.4 million, respectively, of income tax expense and had an effective rate of 24.6% and 25.6%, respectively. For both periods, the primary reason for the difference between the federal statutory income tax rate of 21% and the effective tax rate was the effect of state taxes. Liquidity and Capital Resources We ended first quarter 2022 with $922.7 million of cash and cash equivalents and $444.8 million of debt. At March 31, 2022, we had $1,268.7 million of available liquidity (cash and cash equivalents and undrawn committed bank line availability). We generated $173.8 million of cash during the three months ended March 31, 2022, as cash provided by operations was offset partially by capital spending, dividends paid on our common stock, and tax withholding payments on stock-based awards. Further descriptions of our cash sources and uses for the three month comparative periods are noted below. We believe that our cash flows from operations, combined with our current cash levels and available borrowing capacity, will be adequate to fund debt service requirements and provide cash, as required, to support our ongoing operations, capital expenditures, lease obligations, working capital, income tax payments, and to pay cash dividends to holders of our common stock over the next 12 months. We expect to fund our seasonal and intra-month working capital requirements in 2022 from cash on hand and, if necessary, borrowings under our revolving credit facility. We also estimate remitting between $165 million and $185 million of income tax payments during second quarter 2022 for estimated payments on 2022 income. 27 Table of Contents Sources and Uses of Cash We generate cash primarily from sales of our products, as well as short-term and long-term borrowings. Our primary uses of cash are for expenses related to the manufacture and distribution of building products, including inventory purchased for resale, wood fiber, labor, energy, and glues and resins. In addition to paying for ongoing operating costs, we use cash to invest in our business, service our debt and lease obligations, and return cash to our shareholders through dividends or common stock repurchases. Below is a discussion of our sources and uses of cash for operating activities, investing activities, and financing activities. Three Months Ended March 31 2022 2021 (thousands) Net cash provided by operations $ 198,945 $ 72,251 Net cash used for investment (14,867) (13,165) Net cash used for financing (10,264) (7,486) Operating Activities For the three months ended March 31, 2022, our operating activities generated $198.9 million of cash, compared with $72.3 million of cash generated in the same period in 2021. The $126.7 million increase in cash provided by operations was due primarily to an improvement in income from operations. See "Our Operating Results" in this Management's Discussion and Analysis of Financial Condition and Results of Operations for more information related to factors affecting our operating results. This increase in cash was offset partially by an increase in working capital of $217.8 million during the three months ended March 31, 2022, compared with a $147.4 million increase for the same period in the prior year. In addition, cash paid for taxes, net of refunds received, increased $3.2 million compared to the prior year. The increase in working capital during both periods was primarily attributable to higher receivables and inventories, offset by an increase in accounts payable and accrued liabilities. The increases in receivables in both periods primarily reflect increased sales of approximately 49% and 46%, comparing sales for the months of March 2022 and 2021 with sales for the months of December 2021 and 2020, respectively. Inventories increased during both periods primarily due to increased cost of inventory purchased for resale and higher production costs for our manufactured products. The increase in accounts payable and accrued liabilities provided $147.4 million of cash during the three months ended March 31, 2022, compared with $125.1 million in the same period a year ago. The increase in accounts payable and accrued liabilities as of March 31, 2022 was related to the increase in inventories and higher accrued rebates, offset partially by employee incentive compensation payouts made during the quarter. During the three months ended March 31, 2021, seasonal increases in inventory in preparation for the spring building season and extended terms offered by major vendors to our BMD segment led to the increase in accounts payable. This increase in accounts payable was offset partially by decreases in accrued liabilities, most notably annual employee incentive compensation payouts made during first quarter 2021. Investment Activities During the three months ended March 31, 2022 and 2021, we used $17.4 million and $13.3 million, respectively, of cash for purchases of property and equipment, including business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance. During the three months ended March 31, 2022, we received $2.5 million of earn-out income related to a previous asset sale in our Wood Products segment. We expect capital expenditures in 2022 to total approximately $110 million to $130 million. We expect our capital spending in 2022 will be for business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance. Our 2022 capital expenditures range includes funding to complete our BMD organic expansions in Ohio, Kentucky, and Minnesota, and a new dryer at our Chester, South Carolina, veneer and plywood plant. This level of capital expenditures could increase or decrease as a result of a number of factors, including acquisitions, efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases. Financing Activities During the three months ended March 31, 2022, our financing activities used $10.3 million of cash, including $5.9 million for common stock dividend payments and $3.9 million of tax withholding payments on stock-based awards. During the 28 Table of Contents three months ended March 31, 2022, we did not borrow under our revolving credit facility, and therefore have no borrowing outstanding on the facility as of March 31, 2022. During the three months ended March 31, 2021, our financing activities used $7.5 million of cash, including $4.4 million for common stock dividend payments and $2.7 million of tax withholding payments on stock-based awards. During the three months ended March 31, 2021, we did not borrow under our revolving credit facility. Future dividend declarations, including amount per share, record date and payment date, will be made at the discretion of our board of directors and will depend upon, among other things, legal capital requirements and surplus, our future operations and earnings, general financial condition, material cash requirements, restrictions imposed by our asset-based credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant. For more information related to our debt transactions and structure, and our dividend policy, see the discussion in Note 5, Debt, and Note 8, Stockholders' Equity, respectively, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q. Other Material Cash Requirements For information about other material cash requirements, see Liquidity and Capital Resources in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Form 10-K. As of March 31, 2022, there have been no material changes in other material cash requirements outside the ordinary course of business since December 31, 2021. Guarantees Note 9, Debt, and Note 17, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2021 Form 10-K describe the nature of our guarantees, including the approximate terms of the guarantees, how the guarantees arose, the events or circumstances that would require us to perform under the guarantees, and the maximum potential undiscounted amounts of future payments we could be required to make. As of March 31, 2022, there have been no material changes to the guarantees disclosed in our 2021 Form 10-K. Seasonal Influences We are exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors. These seasonal factors are common in the building products industry. Seasonal changes in levels of building activity affect our building products businesses, which are dependent on housing starts, repair-and-remodeling activities, and light commercial construction activities. We typically report lower sales volumes in the first and fourth quarters due to the impact of poor weather on the construction market, and we generally have higher sales volumes in the second and third quarters, reflecting an increase in construction due to more favorable weather conditions. We typically have higher working capital in the first and second quarters in preparation and response to the building season. Seasonally cold weather increases costs, especially energy consumption costs, at most of our manufacturing facilities. Employees As of May 1, 2022, we had approximately 6,140 employees. Approximately 23% of these employees work pursuant to collective bargaining agreements. As of May 1, 2022, we had ten collective bargaining agreements. Two agreements covering approximately 780 employees at our Oakdale and Florien plywood plants expired on July 15, 2021, but the terms and conditions of these agreements remain in effect pending negotiation of new agreements. One agreement covering approximately 120 employees at our Canadian EWP facility is set to expire on December 31, 2022. We may not be able to renew these agreements or may renew them on terms that are less favorable to us than the current agreements. If any of these agreements are not renewed or extended upon their termination, we could experience a material labor disruption, strike, or significantly increased labor costs at one or more of our facilities, either in the course of negotiations of a labor agreement or otherwise. Labor disruptions or shortages could prevent us from meeting customer demands or result in increased costs, thereby reducing our sales and profitability. 29 Table of Contents Disclosures of Financial Market Risks In the normal course of business, we are exposed to financial risks such as changes in commodity prices, interest rates, and foreign currency exchange rates. As of March 31, 2022, there have been no material changes to financial market risks disclosed in our 2021 Form 10-K. Environmental As of March 31, 2022, there have been no material changes to environmental issues disclosed in our 2021 Form 10-K. For additional information, see Environmental in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Form 10-K. Critical Accounting Estimates Critical accounting estimates are those that are most important to the portrayal of our financial condition and results. These estimates require management's most difficult, subjective, or complex judgments, often as a result of the need to estimate matters that are inherently uncertain. We review the development, selection, and disclosure of our critical accounting estimates with the Audit Committee of our board of directors. For information about critical accounting estimates, see Critical Accounting Estimates in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2021 Form 10-K. At March 31, 2022, there have been no material changes to our critical accounting estimates from those disclosed in our 2021 Form 10-K. New and Recently Adopted Accounting Standards For information related to new and recently adopted accounting standards, see "New and Recently Adopted Accounting Standards" in Note 2, Summary of Significant Accounting Policies, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" in this Form 10-Q.