What changed in this filing

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Item 1. Financial Statements

2021-07-23 compared with 2021-04-23 · 91 added, 69 removed, 362 unchanged (31% of the section changed)

19 unchanged sentences

Common stock, par value $ 1.00 per share, 200,000,000 authorized shares,

49,124,801 and 48,061,921 shares issued and outstanding at March 31, 2021

49,527,108 and 48,061,921 shares issued and outstanding at June 30, 2021

and September 30, 2020, respectively

9 unchanged sentences

Three Months Ended

March 31, Six Months Ended

June 30, Nine Months Ended

2021 2020 2021 2020

3 unchanged sentences

Selling, general and administrative expense 16.9 11.2 48.7 32.8

Equity in earnings of unconsolidated ventures ( 0.1 ) ( 0.3 ) ( 0.3 ) ( 0.8 )

Equity in loss (earnings) of unconsolidated ventures — 0.1 ( 0.2 ) ( 0.6 )

Gain on sale of assets — — — ( 0.1 )

Interest and other income ( 0.3 ) ( 0.8 ) ( 1.2 ) ( 4.2 )

Loss on extinguishment of debt 18.1 — 18.1 —

Income before income taxes 21.1 10.3 87.9 46.1

36 unchanged sentences

$ 49.1 $ 625.3 $ 269.3 $ 0.8 $ 944.5

— — 15.8 0.1 15.9

Issuance of common stock ( 378,736 shares)

0.4 8.9 — — 9.3

Stock issued under employee benefit plans ( 23,571 shares)

Cash paid for shares withheld for taxes

— ( 0.1 ) — — ( 0.1 )

Stock-based compensation expense

— 0.8 — — 0.8

Balances at June 30, 2021 ( 49,527,108 shares)

$ 49.5 $ 634.9 $ 285.1 $ 0.9 $ 970.4

See accompanying notes to consolidated financial statements.

FORESTAR GROUP INC.

CONSOLIDATED STATEMENTS OF TOTAL EQUITY (Continued)

Common Stock Additional Paid-in Capital Retained Earnings Non-controlling Interests Total Equity

17 unchanged sentences

$ 48.0 $ 603.3 $ 184.6 $ 0.9 $ 836.8

Net income — — 10.1 — 10.1

Stock issued under employee benefit plans ( 34,562 shares)

0.1 — — — 0.1

Cash paid for shares withheld for taxes

— ( 0.1 ) — — ( 0.1 )

Stock-based compensation expense

— 0.3 — — 0.3

Distributions to noncontrolling interests

— — — ( 0.3 ) ( 0.3 )

Balances at June 30, 2020 ( 48,059,921 shares)

$ 48.1 $ 603.5 $ 194.7 $ 0.6 $ 846.9

See accompanying notes to consolidated financial statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended March 31,

Nine Months Ended June 30,

(In millions)

6 unchanged sentences

Land option charges 1.6 0.5

Loss on extinguishment of debt 18.1 —

Gain on sale of assets — ( 0.1 )

1 unchanged sentence

Increase in real estate ( 540.7 ) ( 258.8 )

Decrease in income taxes receivable 6.3 0.7

Decrease (increase) in income taxes receivable 6.3 ( 5.7 )

Increase in other assets ( 13.4 ) ( 4.2 )

11 unchanged sentences

Deferred financing fees ( 5.0 ) ( 4.8 )

Issuance of common stock 23.3 —

Proceeds from issuance of common stock 32.6 —

Purchase of noncontrolling interest ( 2.4 ) —

2 unchanged sentences

Net cash provided by financing activities 60.6 175.4

Net (decrease) increase in cash and cash equivalents ( 227.1 ) 55.4

Net decrease in cash and cash equivalents ( 278.3 ) ( 27.2 )

Cash and cash equivalents at beginning of period 394.3 382.8

25 unchanged sentences

Horton is considered a related party of Forestar under GAAP.

At March 31, 2021, D.R.

At June 30, 2021, D.R.

Horton owned approximately 64 % of the Company's outstanding common stock.

23 unchanged sentences

$ 1,861.4 $ 1,309.7

In the six months ended March 31, 2021, the Company invested $ 484.6 million for the acquisition of residential real estate and $ 369.4 million for the development of residential real estate.

At March 31, 2021 and September 30, 2020, undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R.

In the nine months ended June 30, 2021, the Company invested $ 654.7 million in the acquisition of residential real estate and $ 604.3 million in the development of residential real estate.

At June 30, 2021 and September 30, 2020, undeveloped land primarily consisted of undeveloped land which the Company has the contractual right to sell to D.R.

Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12 % to 16 % per annum.

1 unchanged sentence

As a result of this process, there were no real estate impairment charges recorded for any period presented in the consolidated statements of operations.

During the three and six months ended March 31, 2021, pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $ 0.6 million and $ 0.9 million, respectively, compared to $ 0.1 million and $ 0.4 million in the prior year periods.

During the three and nine months ended June 30, 2021, pre-acquisition cost write-offs related to land purchase contracts that the Company has terminated or expects to terminate were $ 0.7 million and $ 1.6 million, respectively, compared to $ 0.1 million and $ 0.5 million in the prior year periods.

Real estate impairments and land option charges are included in cost of sales in the consolidated statements of operations.

1 unchanged sentence

Revenues consist of:

Three Months Ended March 31, Six Months Ended March 31,

Three Months Ended June 30, Nine Months Ended June 30,

2021 2020 2021 2020

7 unchanged sentences

During periods in which the Company’s active real estate is lower than its debt level, a portion of the interest incurred is reflected as interest expense in the period incurred.

During the first six months of fiscal 2021 and fiscal year 2020, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate.

The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three and six months ended March 31, 2021 and 2020.

Three Months Ended March 31, Six Months Ended March 31,

During the first nine months of fiscal 2021 and fiscal 2020, the Company’s active real estate exceeded its debt level, and all interest incurred was capitalized to real estate.

The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the three and nine months ended June 30, 2021 and 2020.

Three Months Ended June 30, Nine Months Ended June 30,

2021 2020 2021 2020

5 unchanged sentences

Note 6— Other Assets, Accrued Expenses and Other Liabilities

The Company's other assets at March 31, 2021 and September 30, 2020 were as follows:

The Company's other assets at June 30, 2021 and September 30, 2020 were as follows:

2021 September 30,

7 unchanged sentences

$ 34.7 $ 24.9

The Company's accrued expenses and other liabilities at March 31, 2021 and September 30, 2020 were as follows:

The Company's accrued expenses and other liabilities at June 30, 2021 and September 30, 2020 were as follows:

2021 September 30,

17 unchanged sentences

3.85 % senior notes due 2026 (1)

5.0 % senior notes due 2028 (1)

Other note payable 12.5 —

1 unchanged sentence

______________

(1) Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $ 7.9 million and $ 8.9 million at March 31, 2021 and September 30, 2020, respectively.

(1) Unamortized debt issuance costs that were deducted from the carrying amounts of the senior notes totaled $ 8.4 million and $ 8.9 million at June 30, 2021 and September 30, 2020, respectively.

Bank Credit Facility

The Company has a $ 380 million senior unsecured revolving credit facility with an uncommitted accordion feature that could increase the size of the facility to $ 570 million, subject to certain conditions and availability of additional bank commitments.

In April 2021, the Company's senior unsecured revolving credit facility was amended to increase its capacity to $ 410 million with an uncommitted accordion feature that could increase the size of the facility to $ 600 million, subject to certain conditions and availability of additional bank commitments.

The facility also provides for the issuance of letters of credit with a sublimit equal to the greater of $ 100 million and 50 % of the revolving credit commitment.

1 unchanged sentence

Letters of credit issued under the facility reduce the available borrowing capacity.

The maturity date of the facility is October 2, 2022.

There were no borrowings or repayments under the facility during the six months ended March 31, 2021.

At March 31, 2021, there were no borrowings outstanding and $ 46.0 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $ 334.0 million.

The maturity date of the facility was extended to April 16, 2025.

Borrowings and repayments under the facility were $ 25 million each during the nine months ended June 30, 2021.

At June 30, 2021, there were no borrowings outstanding and $ 60.2 million of letters of credit issued under the revolving credit facility, resulting in available capacity of $ 349.8 million.

The revolving credit facility includes customary affirmative and negative covenants, events of default and financial covenants.

2 unchanged sentences

A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity.

At March 31, 2021, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility.

In April 2021, the revolving credit facility was amended to extend its maturity date from October 2, 2022 to April 16, 2025.

The maturity date may be extended subject to the approval of lenders holding a majority of the commitments.

The revolving credit facility size was increased to $ 410 million with an uncommitted accordion feature that could increase the size of the facility to $ 600 million, subject to certain conditions and availability of additional bank commitments.

At June 30, 2021, the Company was in compliance with all of the covenants, limitations and restrictions of its revolving credit facility.

The Company has outstanding senior notes as described below that were issued pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended.

1 unchanged sentence

The notes are guaranteed by each of the Company's subsidiaries to the extent such subsidiaries guarantee the Company's revolving credit facility.

The Company's $ 300 million principal amount of 5.0 % senior notes mature March 1, 2028 with interest payable semi-annually.

On or after March 1, 2023, the notes may be redeemed at 102.5 % of their principal amount plus any accrued and unpaid interest.

In accordance with the indenture, the redemption price decreases annually thereafter and the notes can be redeemed at par on or after March 1, 2026 through maturity.

The annual effective interest rate of the notes after giving effect to the amortization of financing costs is 5.2 %.

The Company's $ 350 million principal amount of 8.0 % senior notes mature April 15, 2024 with interest payable semi-annually.

On or after April 15, 2021, the notes may be redeemed at 104 % of their principal amount plus any accrued and unpaid interest.

In accordance with the indenture, the redemption price decreases annually thereafter and the notes can be redeemed at par on or after April 15, 2023 through maturity.

The annual effective interest rate of the notes after giving effect to the amortization of financing costs is 8.5 %.

In April 2021, the Company issued $ 400 million principal amount of 3.85 % senior notes that mature May 15, 2026 with interest payable semi-annually.

2 unchanged sentences

The annual effective interest rate of the notes after giving effect to the amortization of financing costs is 4.1 %.

A portion of the net proceeds from the issuance of the notes will be used to redeem the $ 350 million principal amount of 8.0 % senior notes due April 15, 2024 in full, and the remainder of the proceeds will be used for general corporate purposes.

In April 2021, the Company delivered notice for the full redemption of its $ 350 million principal amount of 8.0 % senior notes outstanding.

The redemption price of $ 365.6 million includes a call premium of $ 14.0 million and accrued and unpaid interest of $ 1.6 million.

The Company expects to recognize a loss on extinguishment of debt upon the redemption of the notes.

The notes are scheduled to be redeemed May 7, 2021.

The net proceeds from this issuance were primarily used to redeem the Company's $ 350 million principal amount of 8.0 % senior notes due April 15, 2024 on May 7, 2021.

The redemption price of $ 365.6 million included a call premium of $ 14.0 million and accrued and unpaid interest of $ 1.6 million.

The Company recognized an $ 18.1 million loss on extinguishment of debt upon the redemption of the notes.

The Company's $ 300 million principal amount of 5.0 % senior notes mature March 1, 2028 with interest payable semi-annually.

On or after March 1, 2023, the notes may be redeemed at 102.5 % of their principal amount plus any accrued and unpaid interest.

In accordance with the indenture, the redemption price decreases annually thereafter and the notes can be redeemed at par on or after March 1, 2026 through maturity.

The annual effective interest rate of the notes after giving effect to the amortization of financing costs is 5.2 %.

The indentures governing the senior notes require that, upon the occurrence of both a change of control and a rating decline (each as defined in the respective indenture), the Company offer to purchase the notes at 101% of their principal amount.

6 unchanged sentences

and allow to exist certain restrictions on the ability of subsidiaries to pay dividends or make other payments.

At March 31, 2021, the Company was in compliance with all of the limitations and restrictions associated with its senior note obligations.

At June 30, 2021, the Company was in compliance with all of the limitations and restrictions associated with its senior note obligations.

Effective April 30, 2020, the Board of Directors authorized the repurchase of up to $ 30 million of the Company’s debt securities.

The authorization has no expiration date.

All of the $ 30 million authorization was remaining at March 31, 2021.

All of the $ 30 million authorization was remaining at June 30, 2021.

Other Note Payable

3 unchanged sentences

The computations of basic and diluted earnings per share are as follows:

Three Months Ended March 31, Six Months Ended March 31,

Three Months Ended June 30, Nine Months Ended June 30,

2021 2020 2021 2020

10 unchanged sentences

Note 9— Income Taxes

The Company’s income tax expense for the three and six months ended March 31, 2021 was $ 9.2 million and $ 16.3 million compared to $ 3.3 million and $ 8.7 million in the prior year periods.

The effective tax rate was 24.5 % and 24.4 % for the three and six months ended March 31, 2021 compared to 24.1 % and 24.3 % in the prior year periods.

The Company’s income tax expense for the three and nine months ended June 30, 2021 was $ 5.2 million and $ 21.5 million compared to $ 0.2 million and $ 8.9 million in the prior year periods.

The effective tax rate was 24.6 % and 24.5 % for the three and nine months ended June 30, 2021 compared to 1.9 % and 19.3 % in the prior year periods.

The effective tax rate for the three and nine months ended June 30, 2020 includes a tax benefit of $ 2.3 million related to the net operating loss (NOL) carryback provisions of the Coronavirus Aid, Relief, and Economic Security Act, which allowed the Company to carryback a portion of its 2018 NOL.

The carryback provisions resulted in the recognition of previously unrecognized tax benefits and the revaluation of deferred tax assets due to the utilization of NOLs at a higher tax rate in the carryback period.

The effective tax rate for all periods includes an expense for state income taxes and nondeductible expenses and a benefit related to noncontrolling interests.

At March 31, 2021, the Company had deferred tax liabilities, net of deferred tax assets, of $ 6.1 million.

At June 30, 2021, the Company had deferred tax liabilities, net of deferred tax assets, of $ 8.5 million.

The deferred tax assets were partially offset by a valuation allowance of $ 1.3 million, resulting in a net deferred tax liability of $ 9.8 million.

1 unchanged sentence

The deferred tax assets were partially offset by a valuation allowance of $ 1.5 million, resulting in a net deferred tax liability of $ 5.7 million.

The valuation allowance for both periods was recorded because it is more likely than not that a portion of the Company's state deferred tax assets, primarily net operating loss (NOL) carryforwards, will not be realized because the Company is no longer operating in some states or the NOL carryforward periods are too brief to realize the related deferred tax asset.

The valuation allowance for both periods was recorded because it is more likely than not that a portion of the Company's state deferred tax assets, primarily NOL carryforwards, will not be realized because the Company is no longer operating in some states or the NOL carryforward periods are too brief to realize the related deferred tax asset.

The Company will continue to evaluate both the positive and negative evidence in determining the need for a valuation allowance on its deferred tax assets.

2 unchanged sentences

Stockholders' Equity

The Company has an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) in September 2018 registering $ 500 million of equity securities, of which $ 100 million is reserved for sales under its at-the-market equity offering program that became effective in August 2020.

During the three months ended March 31, 2021, the Company issued 1.0 million shares of common stock under its at-the-market equity offering program for proceeds of $ 23.3 million, net of commissions and other issuance costs.

At March 31, 2021, $ 370.6 million remained available for issuance under the shelf registration statement, of which $ 76.3 million is reserved for sales under the Company's at-the-market equity offering program.

The Company has an effective shelf registration statement filed with the Securities and Exchange Commission (SEC) in September 2018 registering $ 500 million of equity securities, of which $ 100 million was reserved for sales under its at-the-market equity offering program that became effective in August 2020.

During the three and nine months ended June 30, 2021, the Company issued 0.4 million and 1.4 million shares of common stock under its at-the-market equity offering program for proceeds of $ 9.3 million and $ 32.6 million, respectively, net of commissions and other issuance costs.

At June 30, 2021, $ 361.0 million remained available for issuance under the shelf registration statement, of which $ 66.7 million is reserved for sales under the Company's at-the-market equity offering program.

Restricted Stock Units (RSUs)

3 unchanged sentences

The RSUs have no voting rights until vested.

During the six months ended March 31, 2021, a total of 232,320 time-based RSUs were granted.

During the nine months ended June 30, 2021, a total of 234,000 time-based RSUs were granted.

The weighted average grant date fair value of these equity awards was $ 23.13 per unit, and they vest annually in equal installments over a period of three to five years.

Total stock-based compensation expense related to the Company's restricted stock units for the three and six months ended March 31, 2021 was $ 0.9 million and $ 1.2 million compared to $ 0.8 million and $ 1.3 million in the prior year periods.

Stock-based compensation expense related to employees that were retirement eligible on the date of grant in the six months ended March 31, 2021 and 2020 was $ 0.7 million and $ 0.5 million, respectively.

Total stock-based compensation expense related to the Company's restricted stock units for the three and nine months ended June 30, 2021 was $ 0.8 million and $ 2.0 million compared to $ 0.3 million and $ 1.6 million in the prior year periods.

Stock-based compensation expense in the nine months ended June 30, 2021 and 2020 included $ 0.7 million and $ 0.6 million, respectively, of expense recognized for employees that were retirement eligible on the date of grant.

Note 11— Commitments and Contingencies

1 unchanged sentence

In support of the Company's residential lot development business, it issues letters of credit under the revolving credit facility and has a surety bond program that provides financial assurance to beneficiaries related to the execution and performance of certain development obligations.

At March 31, 2021, the Company had outstanding letters of credit of $ 46.0 million under the revolving credit facility and surety bonds of $ 368.6 million issued by third parties to secure performance under various contracts.

At June 30, 2021, the Company had outstanding letters of credit of $ 60.2 million under the revolving credit facility and surety bonds of $ 436.6 million issued by third parties to secure performance under various contracts.

The Company expects that its performance obligations secured by these letters of credit and bonds will generally be completed in the ordinary course of business and in accordance with the applicable contractual terms.

8 unchanged sentences

Horton provides the Company with certain administrative, compliance, operational and procurement services.

During the six months ended March 31, 2021 and 2020, selling, general and administrative expense in the consolidated statements of operations includes $ 2.0 million and $ 2.6 million for these shared services, $ 1.8 million and $ 1.0 million for the cost of health insurance and other employee benefits and $ 1.4 million and $ 1.3 million for other corporate and administrative expenses paid by D.R.

During the nine months ended June 30, 2021 and 2020, selling, general and administrative expense in the consolidated statements of operations includes $ 2.9 million and $ 3.8 million for these shared services, $ 3.4 million and $ 1.9 million for the cost of health insurance and other employee benefits and $ 5.5 million and $ 3.4 million for other corporate and administrative expenses paid by D.R.

Horton on behalf of the Company.

1 unchanged sentence

Horton, both companies identify land development opportunities to expand Forestar's portfolio of assets.

At March 31, 2021 and September 30, 2020, the Company owned or controlled through purchase contracts approximately 84,500 and 60,500 residential lots, of which D.R.

At June 30, 2021 and September 30, 2020, the Company owned or controlled through purchase contracts approximately 96,600 and 60,500 residential lots, of which D.R.

Horton had the following involvement.

11 unchanged sentences

Horton $ 1,611.5 $ 1,022.2

In the three months ended March 31, 2021 and 2020, the Company's residential lot sales totaled 3,588 and 1,951 , and lot sales revenues were $ 280.2 million and $ 156.4 million.

In the six months ended March 31, 2021 and 2020, the Company's residential lot sales totaled 7,155 and 4,373 , and lot sales revenues were $ 587.1 million and $ 373.5 million.

Lot and land sales to D.R.

In the three months ended June 30, 2021 and 2020, the Company's residential lot sales totaled 3,858 and 2,023 , and lot sales revenues were $ 307.4 million and $ 164.4 million.

In the nine months ended June 30, 2021 and 2020, the Company's residential lot sales totaled 11,013 and 6,396 , and lot sales revenues were $ 894.5 million and $ 537.9 million.

Revenues recognized from sales to D.R.

Horton during those periods were as follows.

Three Months Ended March 31, Six Months Ended March 31,

Three Months Ended June 30, Nine Months Ended June 30,

2021 2020 2021 2020

8 unchanged sentences

Horton $ 3.0 $ 13.4 $ 6.0 $ 20.6

Other revenue from transactions with D.R.

Horton $ 2.4 $ — $ 2.4 $ —

In addition, the net impact of the change in contract liabilities decreased revenues on lot sales to D.R.

Horton by $ 0.2 million in the three months ended March 31, 2021 and $ 0.6 million in the six months ended March 31, 2020, and increased revenues on lot sales to D.R.

Horton by $ 0.8 million in the three months ended March 31, 2020.

During the three and six months ended March 31, 2021, the Company reimbursed D.R.

Horton by $ 3.9 million in both the three and nine months ended June 30, 2021 and increased revenues on lot sales to D.R.

Horton by $ 2.8 million and $ 2.1 million in the three and nine months ended June 30, 2020.

During the three and nine months ended June 30, 2021, the Company reimbursed D.R.

Horton approximately $ 3.5 million and $ 27.7 million for previously paid earnest money and $ 14.9 million and $ 43.1 million for pre-acquisition and other due diligence and development costs related to land purchase contracts whereby D.R.

Horton assigned its rights under these land purchase contracts to the Company.

During the three and six months ended March 31, 2020, the Company reimbursed D.R.

During the three and nine months ended June 30, 2020, the Company reimbursed D.R.

Horton approximately $ 7.0 million and $ 23.2 million for previously paid earnest money and $ 12.9 million and $ 26.2 million for pre-acquisition and other due diligence and development costs.

During the three and six months ended March 31, 2021 and 2020, the Company paid D.R.

During the three and nine months ended June 30, 2021, the Company paid D.R.

Horton $ 1.3 million and $ 4.2 million for land development services compared to $ 1.0 million and $ 3.9 million for these services in the prior year periods.

These amounts are included in cost of sales in the Company’s consolidated statements of operations.

At March 31, 2021 and September 30, 2020, undeveloped land was $ 55.5 million and $ 5.4 million.

At June 30, 2021 and September 30, 2020, undeveloped land was $ 83.5 million and $ 5.4 million.

Undeveloped land primarily consists of undeveloped land which the Company has the contractual right to sell to D.R.

Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12 % to 16 % per annum.

At March 31, 2021 and September 30, 2020, accrued expenses and other liabilities on the Company's consolidated balance sheets included $ 1.1 million and $ 8.4 million, respectively, owed to D.R.

At June 30, 2021 and September 30, 2020, accrued expenses and other liabilities on the Company's consolidated balance sheets included $ 6.5 million and $ 8.4 million, respectively, owed to D.R.

Horton for any accrued and unpaid shared service charges, land purchase contract deposits and due diligence and other development cost reimbursements.

9 unchanged sentences

The Company elected not to use the fair value option for cash and cash equivalents and debt.

For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at March 31, 2021 and September 30, 2020.

Fair Value at March 31, 2021

For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at June 30, 2021 and September 30, 2020.

Fair Value at June 30, 2021

Carrying Value Level 1 Level 2 Level 3 Total

11 unchanged sentences

(1) The fair values of cash and cash equivalents approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy.

(2) At March 31, 2021 and September 30, 2020, the Company's debt primarily consisted of its senior notes.

(2) At June 30, 2021 and September 30, 2020, the Company's debt primarily consisted of its senior notes.

The fair value of the senior notes is determined based on quoted market prices, which is classified as Level 2 within the fair value hierarchy.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements