What changed in this filing

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Item 1. Financial Statements

2022-07-28 compared with 2022-05-04 · 125 added, 81 removed, 377 unchanged (35% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(Information at March 31, 2022 is unaudited)

(Information at June 30, 2022 is unaudited)

(In Thousands)

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CONDENSED CONSOLIDATED BALANCE SHEETS (continued)

(Information at March 31, 2022 is unaudited )

(Information at June 30, 2022 is unaudited )

(In Thousands)

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Three Months Ended

Six Months Ended

(In Thousands, Except Per Share Amounts)

1 unchanged sentence

Selling, general and administrative expense

Other income, net

Operating income (loss)

Other expense (income), net

Operating income

Interest expense, net

Non-operating other expense, net

Income (loss) before provision for income taxes

Provision for income taxes

Net income (loss)

Loss (gain) on extinguishment of debt

Non-operating other expense (income), net

Income before provision (benefit) for income taxes

Provision (benefit) for income taxes

Dividends on convertible preferred stocks

1 unchanged sentence

Accretion of Series E redeemable preferred stock

Net income attributable to participating securities

Net income (loss) attributable to common stockholders

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Balance at March 31, 2022

Stock-based compensation

Purchase of common stock

Balance at June 30, 2022

Balance at December 31, 2020

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Balance at March 31, 2021

Dividend accrued on redeemable

preferred stock

Accretion of redeemable preferred stock

Stock-based compensation

Issuance of unrestricted stock

Balance at June 30, 2021

See accompanying notes condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(In Thousands)

Cash flows from operating activities

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

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

Deferred income taxes

Loss (gain) on extinguishment of debt

Depreciation and amortization of property, plant and equipment

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Cash flows from financing activities

Proceeds from revolving debt facility

Payments on revolving debt facility

Net proceeds from 6.25 % senior secured notes

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extinguishment costs

Acquisition of treasury stock

Other financing activities

Net cash provided (used) by financing activities

Net increase (decrease) in cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

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The accompanying unaudited interim financial statements and notes should be read in conjunction with the financial statements and notes included in the Company’s Form 10-K for the year ended December 31, 2021, filed with the SEC on February 24, 2022, as amended by the Form 10-K/A filed on March 25, 2022 (“2021 Form 10-K”).

The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s results of operations and cash flows for the three-month periods ended March 31, 2022 and 2021 and the Company’s financial position as of March 31, 2022.

The accompanying unaudited interim financial statements in this report reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the Company’s results of operations and cash flows for the three-month and six-month periods ended June 30, 2022 and 2021 and the Company’s financial position as of June 30, 2022.

Basis of Consolidation – LSB and its subsidiaries (the “Company,” “we,” “us,” or “our”) are consolidated in the accompanying condensed consolidated financial statements.

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Actual results could differ from those estimates.

Stock Repurchase Program – During May 2022, our Board authorized a stock repurchase program.

Under the repurchase program, we may repurchase up to $ 50 million of our outstanding common stock through the duration of the authorization.

The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate.

The repurchase program does not obligate LSB Industries to purchase any particular number of shares.

During the second quarter of 2022, we repurchased approximately 0.7 million shares at an average cost of approximately $ 18 per share.

Short-Term Investments - Investments, which consist of U.S.

treasury bills with an original maturities ranging from approximately 17 weeks to 51 weeks, were considered short-term investments.

treasury bills with an original maturity up to and less than 52 weeks, were considered short-term investments.

These investments are carried at cost which approximated fair value.

Equity Awards – Equity award transactions with employees are measured based on the estimated fair value of the equity awards issued.

For equity awards with service conditions that have a graded vesting period, we recognize compensation cost on a straight-line basis over the requisite service period for the entire award.

Forfeitures are accounted for as they occur.

We may issue new shares of common stock or may use treasury shares associated with the equity awards.

Contingencies – Certain conditions may exist which may result in a loss, but which will only be resolved when future events occur.

We and our legal counsel assess such contingent liabilities and such assessment inherently involves an exercise of judgment.

If the assessment of a contingency indicates that it is probable that a loss has been incurred, we would accrue for such contingent losses when such losses can be reasonably estimated.

If the assessment indicates that a potentially material loss contingency is not probable but reasonably possible, or is probable but cannot be estimated, the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

Estimates of potential legal fees and other directly related costs associated with contingencies are not accrued but rather are expensed as incurred.

Loss contingency liabilities are included in current and noncurrent accrued and other liabilities and are based on current estimates that may be revised in the near term.

In addition, we recognize contingent gains when such gains are realized or when the contingencies have been resolved (generally at the time a settlement has been reached).

LSB INDUSTRIES, INC.

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Summary of Significant Accounting Policies (continued)

In January 2022 and March 2022, the compensation committee of our Board of Directors approved the grant of 224,455 shares of time-based restricted stock units and 160,724 shares of performance-based restricted stock units to certain executives and employees under our 2016 Long Term Incentive Plan.

A portion of the time-based restricted stock unit shares will vest at the end of each one-year period at the rate of one-third per year for three years and a portion will vest 100% at the end of three years.

The performance-based restricted stock units will vest on the third anniversary of the grant date subject to the achievement of certain performance metrics established by the Board of Directors as set out in the grant.

Upon the third anniversary the grants may be modified in a range between 0 % and 200 % based upon achievement of the performance goals.

The unvested restricted shares carry dividend and voting rights contingent upon the vesting and lapsing of restriction.

Sales of these shares are restricted prior to the date of vesting.

Pursuant to the terms of the underlying restricted stock agreements, unvested restricted shares may immediately vest upon the occurrence of a change in control (as defined by agreement), termination without cause or death.

Derivatives, Hedges and Financial Instruments – Derivatives are recognized in the balance sheet and measured at fair value.

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Level 3 - Valuations of assets and liabilities classified as Level 3 are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

At March 31, 2022 and December 31, 2021, we did not have any financial instruments with fair values materially different from their carrying amounts (which excludes issuance costs, if applicable).

The carrying value of our Senior Secured Notes approximates fair value and is classified as a Level 2 fair value measurement.

The fair value of financial instruments is not indicative of the overall fair value of our assets and liabilities since financial instruments do not include all assets, including intangibles, and all liabilities.

Recently Issued Accounting Pronouncements

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however, early adoption was permitted beginning January 1, 2021.

We are currently evaluating the timing and the effect of adoption of this ASU on our consolidated financial statements and related disclosures.

We no longer believe this ASU is applicable to our consolidated financial statements and related disclosures.

We will continue to evaluate this ASU if our financial instruments change.

ASU 2020-04 – In March 2020, the FASB issued ASU 2020-04 , Reference Rate Reform (Topic 848):

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This ASU became effective upon issuance.

We continue to evaluate the effect of this ASU and plan to utilize this relief for our debt agreements that include LIBOR rates.

We evaluated the effect of this ASU on our contracts and debt agreement that include LIBOR rates and concluded any impact is not expected to be material.

LSB INDUSTRIES, INC.

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Three Months Ended

Six Months Ended

(In Thousands, Except Per Share Amounts)

5 unchanged sentences

Accretion of Series E Redeemable Preferred

Numerator for basic and diluted net income (loss) per common

Net income attributable to participating securities

Numerator for basic net income (loss) per common

share - net income (loss) attributable to common

Dividends on Series B and Series D Preferred

assumed to be converted, if dilutive

Numerator for diluted net income (loss) per common

Denominator for basic net income (loss) per common

1 unchanged sentence

Effect of dilutive securities:

Convertible preferred stocks

Unvested restricted stock and stock units

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Three Months Ended

Six Months Ended

Restricted stock and stock units

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(In Thousands)

Accrued interest

Current portion of operating lease liabilities

Accrued interest

Accrued payroll and benefits

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Long-term debt due after one year, net

(A) O ur revolving credit facility, as amended (the “Working Capital Revolver Loan”), provides for advances up to $ 65 million (the “Maximum Revolver Amount”), based on specific percentages of eligible accounts receivable and inventories and up to $ 10 million of letters of credit, the outstanding amount as of March 31, 2022 was $ 2.6 million, which reduces the available for borrowing under the Working Capital Revolver Loan.

At March 31, 2022 , our available borrowings under our Working Capital Revolver Loan were approximately $ 62.4 million , based on our eligible collateral, less outstanding letters of credit and loan balance.

(A) O ur revolving credit facility, as amended (the “Working Capital Revolver Loan”), provides for advances up to $ 65 million (the “Maximum Revolver Amount”), based on specific percentages of eligible accounts receivable and inventories and up to $ 10 million of letters of credit, the outstanding amount as of June 30, 2022, was $ 1.6 million, which reduces the available for borrowing under the Working Capital Revolver Loan.

At June 30, 2022 , our available borrowings under our Working Capital Revolver Loan were approximately $ 63.4 million , based on our eligible collateral, less outstanding letters of credit and loan balance.

The maturity date of the Working Capital Revolver Loan is on the earlier of (i) the date that is 90 days prior to the earliest stated maturity date of the Senior Secured Notes (unless refinanced or repaid) and (ii) February 26, 2024 .

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Commitments and Contingencies

Settlements and Outstanding Natural Gas Purchase Commitments – During several days in February 2021, the Pryor Facility was taken out of service after extreme cold weather caused a surge in natural gas prices in the region, along with the curtailment of gas distribution by the operator of the pipeline that supplies natural gas to the facility.

Also, as a result of unprecedented cold weather conditions, the primary natural gas supplier to our El Dorado Facility asserted a claim of force majeure and materially restricted the supply of gas to the facility.

In order to mitigate a portion of the commodity price risk associated with natural gas, we periodically enter into natural gas forward contracts and volume purchase commitments that locked in the cost of certain volumes of natural gas.

Prior to this weather event, we had both types of arrangements.

During the first quarter of 2021, as a result of the extreme conditions previously described, we settled all of our natural gas forward contracts and certain volume purchase commitments at that time and recognized a realized gain of approximately $ 6.8 million, which includes the realized gain classified as a reduction to cost of sales .

At March 31, 2022, certain of our natural gas contracts qualify as normal purchases under GAAP and thus are not mark-to-market.

These contracts included volume purchase commitments with fixed costs of approximately 1.8 million MMBtus of natural gas.

Further, the contracts extend through April 2022 at a weighted-average cost of $ 5.06 per MMBtu ($ 9.2 million) and a weighted-average market value of $ 4.97 per MMBtu ($ 9.1 million).

Outstanding Natural Gas Purchase Commitments – At June 30, 2022, certain of our natural gas contracts qualify as normal purchases under GAAP and thus are not mark-to-market.

These contracts included volume purchase commitments with fixed costs of approximately 11.5 million MMBtus of natural gas and 22.9 million MMBtus of locked basis differential.

Further, the natural gas contracts extend through December 2023 at a weighted-average cost of $ 6.44 per MMBtu ($ 73.8 million) and a weighted-average market value of $ 5.17 per MMBtu ($ 59.2 million).

Legal Matters - Following is a summary of certain legal matters involving the Company:

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We may be required to remediate contaminated properties currently or formerly owned or operated by us or facilities of third parties that received waste generated by our operations regardless of whether such contamination resulted from the conduct of others or from consequences of our own actions that were in compliance with all applicable laws at the time those actions were taken.

In addition, claims for damages to persons or property, including natural resources, may result from the environmental, health and safety effects of our operations.

LSB INDUSTRIES, INC.

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Commitments and Contingencies (continued)

In addition, claims for damages to persons or property, including natural resources, may result from the environmental, health and safety effects of our operations.

There can be no assurance that we will not incur material costs or liabilities in complying with such laws or in paying fines or penalties for violation of such laws.

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We will also be obligated to manage certain discharge water outlets and monitor groundwater contaminants at our facilities should we discontinue the operations of a facility.

As of March 31, 2022, our accrued liabilities for environmental matters totaled approximately $ 0.5 million relating primarily to the matters discussed below.

As of June 30, 2022, our accrued liabilities for environmental matters totaled approximately $ 0.5 million relating primarily to the matters discussed below.

Estimates of the most likely costs for our environmental matters are generally based on preliminary or completed assessment studies, preliminary results of studies, or our experience with other similar matters.

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Although the Injection Well Permit expired in 2018, PCC continues to operate the injection well pending the Oklahoma Department of Environmental Quality (“ODEQ”) action on the Permit Renewal Application.

PCC and ODEQ are engaged in ongoing discussions related to the renewal of the injection well to address the wastewater stream.

Our El Dorado Facility is subject to a National Pollutant Discharge Elimination System (“NPDES”) permit issued by the Arkansas Department of Environmental Quality (“ADEQ”) in 2004.

In 2010, the ADEQ issued a draft NPDES permit renewal for the El Dorado Facility, which contained more restrictive discharge limits than the previous 2004 permit.

During 2017, ADEQ issued a final NPDES permit with new dissolved mineral limits;

however, EDC filed an appeal, and a Permit Appeal Resolution (“PAR”) was signed in 2018.

EDC is in compliance with the revised permit limits agreed upon in the PAR.

Since that time, PCC and ODEQ engaged in ongoing discussions related to the renewal of the injection well to address the wastewater stream.

In 2022, ODEQ responded to the application in the form of an information request.

PCC is currently corresponding with ODEQ general council regarding the well integrity and appropriate methods for establishing injection pressure in order to respond.

In 2006, the El Dorado Facility entered into a Consent Administrative Order (“CAO”) that recognizes the presence of nitrate contamination in the shallow groundwater.

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In 2015, the ADEQ stated that El Dorado Chemical was meeting the requirements of the CAO and should continue semi-annual monitoring.

Subsequent to the PAR mentioned previously, a new CAO was signed in 2018, which required an Evaluation Report of the data and effectiveness of the groundwater remedy for nitrate contamination.

A CAO was signed in 2018, which required an Evaluation Report of the data and effectiveness of the groundwater remedy for nitrate contamination.

During 2019, the Evaluation Report was submitted to the ADEQ and the ADEQ approved the report.

No liability has been established at March 31, 2022, in connection with this ADEQ matter.

No liability has been established as of June 30, 2022, in connection with this ADEQ matter.

Other Environmental Matters

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In addition, certain of our subsidiaries agreed to indemnify the buyer of such assets for these environmental matters.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Commitments and Contingencies (continued)

As the successor to a prior owner of the Hallowell Facility, Chevron Environmental Management Company (“Chevron”) has agreed in writing, within certain limitations, to pay and has been paying one-half of the costs of the investigation and interim measures relating to this matter as approved by the Kansas Department of Health and Environment (the “KDHE”), subject to reallocation.

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This remedy primarily relates to long-term surface and groundwater monitoring to track the natural decline in contamination and is subject to a 5-year re-evaluation with the KDHE.

The final remedy, including the EUC, the finalization of the cost estimates and any required financial assurances remains under discussion with the KDHE, but continues to be delayed due to the impact from the COVID-19 pandemic.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Commitments and Contingencies (continued)

The final remedy, including the EUC, the finalization of the cost estimates and any required financial assurances remains under discussion with the KDHE.

Pending the results from our discussions regarding the final remedy, we continue to accrue our allocable portion of costs primarily for the additional testing, monitoring and risk assessments that could be reasonably estimated, which amount is included in our accrued liabilities for environmental matters discussed above.

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We continue to defend these lawsuits vigorously and we are unable to estimate a possible range of loss at this time if there is an adverse outcome in this matter.

As of March 31, 2022, no liability reserve has been established in connection with this matter.

As of June 30, 2022, no liability reserve has been established in connection with this matter.

In 2015, we and EDA received formal written notice from Global Industrial, Inc.

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We also seek damages from Leidos for their wrongdoing during the expansion, including breach of contract, fraud, professional negligence and gross negligence.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Commitments and Contingencies (continued)

During 2018, the court bifurcated the case into:

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We have filed a notice of intent to appeal and the court entered a stay of the judgment pending appeal.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Commitments and Contingencies (continued)

LSB intends to vigorously prosecute its claims against Leidos and vigorously contest the cross-claims in Part (2) of the matter.

Due to the impact from the COVID-19 pandemic, the trial date for Part (2) of the matter has been delayed and we are awaiting a new trial date.

No liability was established at March 31, 2022 or December 31, 2021, in connection with the cross-claims in Part (2) of the matter, except for certain invoices held in accounts payable.

No liability was established at June 30, 2022 or December 31, 2021, in connection with the cross-claims in Part (2) of the matter, except for certain invoices held in accounts payable.

We are also involved in various other claims and legal actions (including matters involving gain contingencies).

2 unchanged sentences

Natural Gas Contracts

Periodically, we entered into certain forward natural gas contracts (“natural gas contracts”), which are accounted for on a mark-to-market basis.

Periodically, we entered into certain forward natural gas contracts, which are accounted for on a mark-to-market basis.

We are utilizing these natural gas contracts as economic hedges for risk management purposes but are not designated as hedging instruments .

At March 31, 2022 and December 31, 2021, we had no outstanding natural gas contracts.

At June 30, 2022 and December 31, 2021, we had no outstanding natural gas contracts.

When present the valuations of the natural gas contracts are classified as Level 2.

For the three months ended March 31, 2021, we recognized a gain of $ 2.7 million (includes a realized gain of $ 1.5 million), ( no ne for the three months ended March 31, 2022).

For the three months ended June 30, 2021 we had no outstanding natural gas contracts.

For the six months ended June 30, 2021, we recognized a gain of $ 2.7 million (includes a realized gain of $ 1.5 million), all of which was recognized in the first quarter.

The gain is classified as a reduction of cost of sales.

Provision for income taxes is as follows:

Financial Instruments

At June 30, 2022 and December 31, 2021, we did no t have any financial instruments with fair values materially different from their carrying amounts (which excludes issuance costs, if applicable) except for our Senior Secured Notes included in the table below.

The carrying value of our Senior Secured Notes approximates fair value and is classified as a Level 2 fair value measurement.

June 30, 2022

December 31, 2021

(In Millions)

Senior Secured Notes (1)

Based on a quoted price of 89.50 at June 30, 2022 and 103.25 at December 31, 2021.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Provision (benefit) for income taxes is as follows:

Three Months Ended

Six Months Ended

(In Thousands)

2 unchanged sentences

Provision for income taxes

For the three months ended March 31, 2022 and 2021, the current provision (benefit) for state income taxes shown above includes regular state income tax, provisions for uncertain state income tax positions, the impact of state tax law changes and other similar adjustments.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Income Taxes (continued)

For the three and six months ended June 30, 2022 and 2021, the current provision (benefit) for state income taxes shown above includes regular state income tax, provisions for uncertain state income tax positions, the impact of state tax law changes and other similar adjustments.

Our estimated annual effective rate for 2022 includes the impact of permanent tax differences, limits on deductible compensation, valuation allowances and other permanent items.

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Changes in existing tax laws could also affect actual tax results and the realization of deferred tax assets over time.

The tax provision for the three months ended March 31, 2022 was $ 11.1 million ( 15.9 % provision on pre-tax income).

The tax provision for the three months ended March 31, 2021 was minimal.

The tax provision for the six months ended June 30, 2022 was $ 31.5 million ( 16.3 % provision on pre-tax income).

The tax benefit for the six months ended June 30, 2021 was $ 0.2 million ( 2 % benefit on pre-tax income).

For both periods, the effective tax rate is less than the statutory tax rate primarily due to the impact of the valuation allowances.

For the six months ended June 30, 2021, the effective tax rate was also impacted by the PPP loan forgiveness and state tax law changes.

LSB and certain of its subsidiaries file income tax returns in the U.S.

3 unchanged sentences

Additionally, the 2013-2017 years remain subject to examination for determining the amount of net operating loss and other carryforwards.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Disaggregated Net Sales

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Three Months Ended

Six Months Ended

(In Thousands)

2 unchanged sentences

Total net sales

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Net Sales (continued)

Other Information

Although most of our contracts have an original expected duration of one year or less, for our contracts with a duration greater than one year at contract inception, the average remaining expected duration was approximately 17 months at March 31, 2022.

Liabilities associated with contracts with customers (contract liabilities) primarily relate to deferred revenue and customer deposits associated with cash payments received in advance from customers for volume shortfall charges and product shipments.

We had approximately $ 1.8 million and $ 1.6 million of contract liabilities as of March 31, 2022 and December 31, 2021, respectively.

For the three months ended March 31, 2022 and 2021, revenues of $ 1.4 million and $ 1.0 million, respectively, were recognized and included in the balance at the beginning of the respective period.

We had approximately $ 0.4 million and $ 1.6 million of contract liabilities as of June 30, 2022 and December 31, 2021, respectively.

For the three and six months ended June 30, 2022, revenues of $ 1.5 million and $ 1.4 million, respectively, were recognized and included in the balance at the beginning of the respective period.

For the three and six months ended June 30, 2021, revenues of $ 1.0 million and $ 1.6 million, respectively, were recognized and included in the balance at the beginning of the respective period.

For most of our contracts with customers, the transaction price from the inception of a contract is constrained to a short period of time (generally one month) as these contracts contain terms with variable consideration related to both price and quantity .

At March 31, 2022, we have remaining performance obligations with certain customer contracts, excluding contracts with original durations of less than one year and for service contracts for which we have elected the practical expedient for consideration recognized in revenue as invoiced.

At June 30, 2022, we have remaining performance obligations with certain customer contracts, excluding contracts with original durations of less than one year and for service contracts for which we have elected the practical expedient for consideration recognized in revenue as invoiced.

The remaining performance obligations totals approximately $ 72 million, of which approximately 35 % of this amount relates to 2022 through 2024, approximately 31 % relates to 2025 through 2026, with the remainder thereafter.

LSB INDUSTRIES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Related Party Transactions

As of March 31, 2022, we have two separate outstanding financing arrangements by an affiliate of LSB Funding as discussed in footnotes (C) and (D) of Note 4.

As of June 30, 2022, we have two separate outstanding financing arrangements by an affiliate of LSB Funding as discussed in footnotes (C) and (D) of Note 4.

An affiliate of LSB Funding holds $ 30 million of the New Notes.

We are party to a death benefit agreement (“2005 Agreement”) with Jack E.

Golsen”), who retired effective December 31, 2017 .

The 2005 Agreement provided that, upon J.

Golsen’s death, we will pay to the designated beneficiary, a lump-sum payment of $ 2.5 million.

Golsen passed away in April 2022.

Further the Company has maintained and owns a life insurance policy with a face value of $ 3.0 million for which the Company is the beneficiary.

The policy did not have any cash surrender value, premium payments were current and the policy was in force at the time of Golsen’s death.

The $ 2.5 million death benefit payable to the Golsen beneficiary is recorded as a current liability.

Our insurer has approved the insurance claim which causes it to be realizable at June 30, 2022 under our insurance policy.

We have recorded $ 3.0 million in other accounts receivable in our June 30, 2022 condensed consolidated balance sheet and a settlement of life insurance presented within n on-operating other expense (income), net within our condensed consolidated statements of operations for the three and six months ended June 30, 2022.

The settlement of life insurance is included in our condensed consolidated statement of cash flows in “Other” under adjustments to reconcile net income to net cash provided by operating activities.

We received the settlement payment of $ 3.0 million and paid the death benefit of $ 2.5 million in July 2022.

Supplemental Cash Flow Information

The following provides additional information relating to cash flow activities:

Three Months Ended

Six Months Ended

(In Thousands)

Cash refunds for:

Cash payments (refunds) for:

Income taxes, net

3 unchanged sentences

of property, plant and equipment

Settlement of life insurance (1)

Accounts payable associated with debt-related costs

Loss on extinguishment of debt

Dividends accrued on Series E Redeemable Preferred

Accretion of Series E Redeemable Preferred

Gain on extinguishment of PPP loan

Accounts payable associated with financing professional fees

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