What changed in this filing

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Item 1. Financial Statements

2023-08-04 compared with 2023-05-09 · 114 added, 77 removed, 531 unchanged (26% of the section changed)

3 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, September 30,

June 30, September 30,

(in millions, except share amounts)

6 unchanged sentences

Intangible assets, net 341.9 361.2

Goodwill 99.0 98.6

Goodwill, net 97.0 98.6

Other noncurrent assets 56.1 56.7

10 unchanged sentences

Commitments and contingencies (Note 10.)

Preferred stock:

par value $ 0.01 per share;

60,000,000 shares authorized;

none outstanding at June 30, 2023, and September 30, 2022

Common stock:

par value $ 0.01 per share;

600,000,000 shares authorized;

156,366,647 and 155,844,138 shares outstanding at March 31, 2023, and September 30, 2022, respectively

156,424,123 and 155,844,138 shares outstanding at June 30, 2023, and September 30, 2022, respectively

Additional paid-in capital 1,257.2 1,279.6

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended Six months ended

March 31, March 31,

Three months ended Nine months ended

June 30, June 30,

2023 2022 2023 2022

5 unchanged sentences

Selling, general and administrative 60.6 60.8 187.7 175.1

Strategic reorganization and other charges (benefits) 0.7 0.6 ( 3.0 ) 3.0

Strategic reorganization and other charges 3.9 0.6 0.9 3.6

Total operating expenses 64.5 61.4 188.6 178.7

18 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended Six months ended

March 31, March 31,

Three months ended Nine months ended

June 30, June 30,

2023 2022 2023 2022

1 unchanged sentence

Net income $ 24.5 $ 26.5 $ 68.3 $ 69.5

Other comprehensive income (loss):

Other comprehensive income (loss), net of income tax:

Pension actuarial amortization 0.8 0.3 2.0 1.0

Income tax effects ( 0.3 ) — ( 0.6 ) ( 0.1 )

Foreign currency translation ( 4.9 ) ( 17.6 ) ( 3.0 ) ( 15.5 )

Total other comprehensive income (loss), net ( 1.5 ) ( 3.2 ) 3.1 2.8

Total other comprehensive loss ( 4.1 ) ( 17.3 ) ( 1.0 ) ( 14.5 )

Comprehensive income $ 20.4 $ 9.2 $ 67.3 $ 55.0

2 unchanged sentences

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

stock Additional

18 unchanged sentences

Balance at March 31, 2023 $ 1.6 $ 1,264.3 $ ( 523.5 ) $ ( 41.5 ) $ 700.9

Net income — — 24.5 — 24.5

Dividends declared — ( 9.6 ) — — ( 9.6 )

Stock-based compensation — 1.7 — — 1.7

Shares retained for employee taxes — ( 0.1 ) — — ( 0.1 )

Common stock issued — 0.9 — — 0.9

Other comprehensive loss, net of tax — — — ( 4.1 ) ( 4.1 )

Balance at June 30, 2023 $ 1.6 $ 1,257.2 $ ( 499.0 ) $ ( 45.6 ) $ 714.2

The accompanying notes are an integral part of the condensed consolidated financial statements.

MUELLER WATER PRODUCTS, INC.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

stock Additional

20 unchanged sentences

Balance at March 31, 2022 $ 1.6 $ 1,307.6 $ ( 600.9 ) $ ( 2.2 ) $ 706.1

Net income — — 26.5 — 26.5

Dividends declared — ( 9.1 ) — — ( 9.1 )

Stock-based compensation — 2.2 — — 2.2

Shares retained for employee taxes — ( 0.1 ) — — ( 0.1 )

Stock repurchased under buyback program — ( 5.0 ) — — ( 5.0 )

Common stock issued — 0.5 — — 0.5

Other comprehensive income, net of tax — — — ( 17.3 ) ( 17.3 )

Balance at June 30, 2022 $ 1.6 $ 1,296.1 $ ( 574.4 ) $ ( 19.5 ) $ 703.8

The accompanying notes are an integral part of the condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended

Nine months ended

(in millions)

1 unchanged sentence

Net income $ 68.3 $ 69.5

Adjustments to reconcile net income to net cash (used in) provided by operating activities, net of acquisition:

Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:

Depreciation 25.1 23.8

13 unchanged sentences

Other noncurrent liabilities ( 2.8 ) ( 1.2 )

Net cash (used in) provided by operating activities

Net cash provided by operating activities 52.5 20.5

Investing activities:

3 unchanged sentences

Net cash used in investing activities ( 27.3 ) ( 36.5 )

( 15.4 ) ( 25.8 )

Financing activities:

5 unchanged sentences

Net cash used in financing activities ( 29.2 ) ( 53.1 )

( 20.1 ) ( 39.1 )

Effect of currency exchange rate changes on cash ( 1.3 ) ( 3.5 )

3 unchanged sentences

The accompanying notes are an integral part of the condensed consolidated financial statements.

Six months ended

Nine months ended

(in millions)

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2023

AS OF AND FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2023

Organization and Basis of Presentation

22 unchanged sentences

Deferral of the Sunset Date of Topic 848” (“ASU 2022-06”).

ASU 2022-06 defers the sunset date for applying the reference rate reform relief in ASC 848 to December 31, 2024 from December 31, 2022.

ASU 2022-06 defers the sunset date for applying the reference rate reform relief in Accounting Standards Codification (“ASC”) 848 to December 31, 2024 from December 31, 2022.

ASU 2022-06 became effective immediately upon issuance.

15 unchanged sentences

Between November 2019 and March 2021, we announced the purchase and closure of several facilities.

We purchased a new facility in Kimball, Tennessee to support and enhance our investment in our Chattanooga, Tennessee large casting foundry and closed our facilities in Hammond, Indiana, Woodland, Washington and Surrey, British Columbia, Canada.

We purchased a new facility in Kimball, Tennessee to support and enhance our investment in our Chattanooga, Tennessee large casting foundry and closed our facilities in Hammond, Indiana;

Woodland, Washington;

and Surrey, British Columbia, Canada.

We also completed the closure of our facility in Aurora, Illinois during our fiscal year 2022.

The majority of the activities from these plants were transferred to our Kimball, Tennessee facility.

Additionally, during our fiscal year 2023, we incurred severance costs related to a reorganization of our sales force.

In connection with these reorganizations, we recognized certain restructuring costs.

During the three months ended December 31, 2022, we recorded a $ 4.0 million gain, before tax, on the sale of the Aurora, Illinois facility.

The restructuring accrual amounts as of March 31, 2023 and September 30, 2022 were immaterial.

During the nine months ended June 30, 2023, we recorded amounts related to severance and transaction-related costs partially offset by a $ 4.0 million gain, before tax, on the sale of the Aurora, Illinois facility.

Activity in accrued restructuring, reported as part of Other current liabilities, is presented below:

Nine months ended

(in millions)

Beginning balance $ 3.3 $ 3.1

Amounts accrued 0.9 0.4

Amounts paid ( 2.0 ) ( 3.0 )

Ending balance $ 2.2 $ 0.5

New Markets Tax Credit Program

34 unchanged sentences

We include current deferred revenue within Other current liabilities in the accompanying condensed consolidated balance sheets.

Deferred revenue represents contract liabilities and is recorded when customers remit cash payments in advance of our satisfaction of performance obligations under contractual arrangements.

Deferred revenue represents contract liabilities and is recorded when customers remit cash payments in advance of our satisfaction of performance obligations pursuant to contractual arrangements.

Contract liabilities are reversed when the performance obligation is satisfied and revenue is recognized.

The table below represents the balances of our customer receivables and deferred revenue:

March 31, September 30,

June 30, September 30,

(in millions)

7 unchanged sentences

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer.

Our performance obligations are satisfied at a point in time for sales of equipment or product over time for our software hosting and leak detection monitoring services.

Our performance obligations are satisfied at a point in time for sales of equipment or product and over time for our software hosting and leak detection monitoring services.

Performance obligations are supported by customer contracts, which provide frameworks for the nature of the distinct products or services.

4 unchanged sentences

We exclude from the measurement of the transaction price all taxes assessed by a governmental authority.

We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less.

We do not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less.

Revenue for the sale of our products is recognized when the obligations of the terms of our contract are satisfied, which is when the customer is able to direct the use of and obtain substantially all of the benefits from the product, which generally occurs upon shipment when control of the product transfers to the customer.

5 unchanged sentences

Our sales commissions are paid based on a combination of orders and shipments, and we reserve the right to claw back any commissions in case of product returns, cancellations or lost collections.

As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and benefits received, we have applied the practical expedient and do not capitalize the related costs and expense them as incurred.

As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and benefits received, we do not capitalize the related costs and expense them as incurred.

The reconciliation between the U.S.

federal statutory income tax rate and the effective income tax rate is presented below:

Three months ended Six months ended

March 31, March 31,

Three months ended Nine months ended

June 30, June 30,

2023 2022 2023 2022

7 unchanged sentences

Nondeductible compensation 0.9 0.9 0.9 0.9

Basis difference in foreign investment — ( 0.1 ) — ( 0.1 )

Valuation allowances — — — 0.3

1 unchanged sentence

Effective income tax rate 20.7 % 21.1 % 22.7 % 22.7 %

At March 31, 2023 and September 30, 2022, the gross liabilities for unrecognized income tax benefits were $ 4.9 million and $ 4.7 million, respectively, and are included in Other noncurrent liabilities.

At June 30, 2023 and September 30, 2022, the gross liabilities for unrecognized income tax benefits were $ 5.3 million and $ 4.7 million, respectively, and are included in Other noncurrent liabilities.

Borrowing Arrangements

The components of our long-term debt are as follows:

March 31, September 30,

June 30, September 30,

(in millions)

3 unchanged sentences

deferred financing costs 4.1 4.7

current portion ( 0.9 ) ( 0.8 )

current portion of long-term debt 0.8 0.8

Long-term debt $ 446.7 $ 446.1

3 unchanged sentences

The ABL permits us to increase the size of the credit facility by an additional $ 150.0 million in certain circumstances subject to adequate borrowing base availability.

As of March 31, 2023, borrowings under the ABL bore interest at a floating rate equal to LIBOR plus an applicable margin range of 200 to 225 basis points, or a base rate, as defined in the ABL, plus an applicable margin range of from 100 to 125 basis points.

At March 31, 2023 the applicable margin for LIBOR based loans was 200 basis points and for base rate loans was 100 basis points.

On April 5, 2023, we amended the ABL.

This amendment replaced LIBOR-based loans with Secured Overnight Financing Rate (“SOFR”) based loans plus an adjustment of 10 basis points, among other immaterial modifications.

Borrowings under the ABL bear interest at a floating rate equal to SOFR plus an adjustment of 10 basis points plus an applicable margin range of 200 to 225 basis points, or a base rate, as defined in the ABL, plus an applicable margin range of from 100 to 125 basis points.

At June 30, 2023 the applicable margin for SOFR-based loans was 200 basis points and for base rate loans was 100 basis points.

The ABL is subject to mandatory prepayments if total outstanding borrowings under the ABL are greater than the aggregate commitments under the revolving credit facility or if we dispose of overdue accounts receivable in certain circumstances.

5 unchanged sentences

Borrowings are not subject to any financial maintenance covenants unless excess availability is less than the greater of $ 17.5 million and 10 % of the Loan Cap as defined in the ABL.

Excess availability based on March 31, 2023 data was $ 162.5 million, as reduced by $ 12.4 million of outstanding letters of credit and $ 0.1 million of accrued fees and expenses.

Excess availability based on June 30, 2023 data was $ 162.3 million, as reduced by $ 12.5 million of outstanding letters of credit and $ 0.2 million of accrued fees and expenses.

4.0% Senior Unsecured Notes.

3 unchanged sentences

Substantially all of our United States subsidiaries guarantee the 4.0% Senior Notes, which are subordinate to borrowings under our ABL.

Based on quoted market prices, which is a Level 1 measurement, the outstanding 4.0% Senior Notes had a fair value of $ 407.9 million at March 31, 2023.

Based on quoted market prices, which is a Level 1 measurement, the outstanding 4.0% Senior Notes had a fair value of $ 400.7 million at June 30, 2023.

An indenture governing the 4.0% Senior Notes (“Indenture”) contains customary covenants and events of default, including covenants that limit our ability to incur certain debt and liens.

There are no financial maintenance covenants associated with the Indenture.

We believe we were in compliance with these covenants at March 31, 2023.

We believe we were in compliance with these covenants at June 30, 2023.

As set forth in the Indenture, we may redeem some or all of the 4.0% Senior Notes at any time prior to June 15, 2024 at certain “make-whole” redemption prices and on or after June 15, 2024 at specified redemption prices.

3 unchanged sentences

The components of net periodic costs (benefits) for our pension plans are presented below:

Three months ended Six months ended

March 31, March 31,

Three months ended Nine months ended

June 30, June 30,

2023 2022 2023 2022

7 unchanged sentences

Net periodic costs (benefits) $ 1.1 $ ( 0.6 ) $ 3.4 $ ( 2.0 )

The amortization of actuarial losses, net of tax, is recorded as a component of other comprehensive income (loss).

The amortization of actuarial losses, net of income tax, is recorded as a component of other comprehensive loss.

For each of the three months ended June 30, 2023 and 2022, the amortization of actuarial net loss is shown net of income tax of $ 0.2 million in the condensed consolidated statements of comprehensive income.

For the nine months ended June 30, 2023 and 2022, the amortization of actuarial loss is shown net of income tax of $ 0.8 million and $ 0.3 million respectively, in the condensed consolidated statements of comprehensive income.

Stock-based Compensation Plans

2 unchanged sentences

2012 Phantom Plan, and Employee stock purchase plan instruments under our 2006 Employee Stock Purchase Plan.

Grants issued during the six months ended March 31, 2023 are as follows:

Grants issued during the nine months ended June 30, 2023 are as follows:

Number granted Weighted average grant date fair value per instrument Total grant date fair value

13 unchanged sentences

Total - Quarter ended March 31, 2023 $ 1.3

Total - Year to date ended March 31, 2023 $ 13.3

Quarter ended June 30, 2023

Phantom Plan instruments 7,176 $ 13.93 $ 0.1

Employee stock purchase plan instruments 45,860 $ 2.28 0.1

Total - Quarter ended June 30, 2023 0.2

Total - Year to date ended June 30, 2023 $ 13.5

An MRSU award represents a target number of units that may be paid out at the end of a three-year award cycle based on a calculation of our relative total shareholder return (“TSR”) performance as compared with the TSR of a selected peer group.

12 unchanged sentences

The expected term represents the average period of time the units are expected to be outstanding.

At March 31, 2023, the outstanding Phantom Plan instruments had a fair value of $ 13.94 per instrument and our liability for Phantom Plan instruments was $ 2.5 million and is included within Other current and Other noncurrent liabilities.

At June 30, 2023, the outstanding Phantom Plan instruments had a fair value of $ 16.23 per instrument and our liability for Phantom Plan instruments was $ 3.5 million and is included within Other current and Other noncurrent liabilities.

Stock options generally vest ratably over three years on each anniversary date.

2 unchanged sentences

November 29, 2022

Variables used in determining grant date fair value:

Dividend yield 1.80 %

7 unchanged sentences

Settlements, in our common shares, will range from zero to two times the number of PRSUs granted, depending on our financial performance relative to the targets.

We issued 282,472 shares of common stock to settle PRSUs vested during the six months ended March 31, 2023;

no shares of common stock were issued to settle PRSUs vested during the three months ended March 31, 2023.

Additionally, we issued 87,975 and 216,023 shares of common stock to settle restricted stock units vested during the three and six months ended March 31, 2023, respectively.

Finally, we issued 24,217 and 61,951 shares of common stock to settle stock options exercised during the three and six months ended March 31, 2023.

Common shares totaling 1,633 and 136,936 were surrendered to us to pay the applicable tax withholding obligations of equity award participants for the three and six months ended March 31, 2023.

Operating income included stock-based compensation expense of $ 3.4 million and $ 2.5 million during the three months ended March 31, 2023 and 2022, respectively.

Operating income included stock-based compensation expense of $ 6.2 million and $ 5.1 million during the six months ended March 31, 2023 and 2022, respectively.

At March 31, 2023, there was approximately $ 14.9 million of unrecognized compensation expense related to stock-based compensation arrangements, which will be expensed through February 2026.

We excluded 998,607 and 944,631 stock-based compensation instruments from the calculations of diluted earnings per share in the three months ended March 31, 2023 and 2022, respectively, and 1,269,484 and 563,299 for the six months ended March 31, 2023 and 2022, respectively, since their inclusion would have been antidilutive.

We issued 282,472 shares of common stock to settle PRSUs vested during the nine months ended June 30, 2023;

no shares of common stock were issued to settle PRSUs vested during the three months ended June 30, 2023.

Additionally, we issued 2,098 and 218,121 shares of common stock to settle restricted stock units vested during the three and nine months ended June 30, 2023, respectively.

Finally, we issued 2,896 and 64,847 shares of common stock to settle stock options exercised during the three and nine months ended June 30, 2023.

Common shares totaling 1,589 and 138,525 were surrendered to us to pay the applicable tax withholding obligations of equity award participants for the three and nine months ended June 30, 2023, respectively.

Operating income included stock-based compensation expense of $ 2.7 million and $ 2.5 million during the three months ended June 30, 2023 and 2022, respectively.

Operating income included stock-based compensation expense of $ 8.8 million and $ 7.6 million during the nine months ended June 30, 2023 and 2022, respectively.

At June 30, 2023, there was approximately $ 11.9 million of unrecognized compensation expense related to stock-based compensation arrangements, which will be expensed through February 2026.

We excluded 249,933 and 892,662 stock-based compensation instruments from the calculations of diluted earnings per share in the three months ended June 30, 2023 and 2022, respectively, and 1,156,428 and 750,343 for the nine months ended June 30, 2023 and 2022, respectively, since their inclusion would have been antidilutive.

Supplemental Balance Sheet Information

Selected supplemental asset information is presented below:

March 31, September 30,

June 30, September 30,

(in millions)

2 unchanged sentences

Finished goods, net 67.6 40.1

Total inventories $ 321.8 $ 278.7

Inventories, net $ 312.7 $ 278.7

Other current assets:

24 unchanged sentences

Selected supplemental liability information is presented below:

March 31, September 30,

June 30, September 30,

(in millions)

5 unchanged sentences

Deferred revenue 8.7 8.1

Refund liability 5.3 4.2

Returned goods accrual 5.7 4.2

Taxes other than income taxes 2.7 4.4

14 unchanged sentences

Workers' compensation accrual 6.1 6.5

Asset retirement obligation 3.6 3.6

Environmental liabilities 3.6 3.6

Deferred development grant 2.5 2.5

2 unchanged sentences

Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis each September 1 st and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

The following table summarizes information concerning our goodwill, all of which is within our Water Management Solutions segment, during the six months ended March 31, 2023, in millions.

The following table summarizes information concerning our goodwill, all of which is within our Water Management Solutions segment, during the nine months ended June 30, 2023, in millions:

Balance at September 30, 2022:

2 unchanged sentences

Goodwill, net 98.6

Activity during the six months ended March 31, 2023:

Activity during the nine months ended June 30, 2023:

Change in foreign currency exchange rates ( 1.6 )

Balance at March 31, 2023

Balance at June 30, 2023

Segment Information

3 unchanged sentences

Summarized financial information for our segments is presented below:

Three months ended Six months ended

March 31, March 31,

Three months ended Nine months ended

June 30, June 30,

2023 2022 2023 2022

24 unchanged sentences

$ 11.9 $ 10.7 $ 32.4 $ 36.7

Water Flow Solutions disaggregated net revenue:

Water Flow Solutions disaggregated net sales:

Central $ 43.0 $ 53.8 $ 131.0 $ 145.0

6 unchanged sentences

$ 150.1 $ 195.9 $ 472.9 $ 534.7

Water Management Solutions disaggregated net revenue:

Water Management Solutions disaggregated net sales:

Central $ 47.4 $ 37.7 $ 133.2 $ 101.1

8 unchanged sentences

Accumulated other comprehensive income (loss) is as follows:

net of tax Foreign currency translation Total

Pension actuarial amortization,

net of income tax Foreign currency translation,

net of income tax Total

(in millions)

Balance at September 30, 2022 $ ( 36.3 ) $ ( 8.3 ) $ ( 44.6 )

Current period other comprehensive income 1.2 1.9 3.1

Balance at March 31, 2023 $ ( 35.1 ) $ ( 6.4 ) $ ( 41.5 )

Current period other comprehensive income (loss) 2.0 ( 3.0 ) ( 1.0 )

Balance at June 30, 2023 $ ( 34.3 ) $ ( 11.3 ) $ ( 45.6 )

For the nine months ended June 30, 2023, pension actuarial amortization included in the condensed consolidated statements of comprehensive income as a component of pension expense other than service was $ 2.8 million, net of income tax of $ 0.8 million.

Refer to Note 5.

Retirement Plans for further information.

For the nine months ended June 30, 2023, foreign currency translation included in the condensed consolidated statements of comprehensive income was $ 3.0 million, net of $ 0 income tax.

Commitments and Contingencies

13 unchanged sentences

Should any of these Tyco indemnitors become financially unable or fail to comply with the terms of the indemnity, we may be responsible for such obligations or liabilities.

On July 13, 2010, Rohcan Investments Limited, the former owner of property leased by Mueller Canada Ltd.

and located in Milton, Ontario, filed a lawsuit against Mueller Canada Ltd.

and its directors seeking C$ 10.0 million in damages arising from the defendants’ alleged environmental contamination of the property and breach of lease.

On November 15, 2022, Mueller Canada Ltd.

agreed to pay Rohcan Investments Limited C$ 1.5 million in settlement of all liability, damages and other claims related to the lawsuit.

We have paid the settlement amount to Rohcan Investments Limited, and are pursuing indemnification from a former owner for certain potential liabilities that were alleged in this lawsuit.

The purchaser of U.S.

5 unchanged sentences

Ultimate liability for the site will depend on many factors that have not yet been determined, including the determination of the Environmental Protection Agency’s remediation costs, the number and financial viability of the other PRPs (there are four other PRPs currently) and the determination of the final allocation of the costs among the PRPs.

Since the amounts of such costs cannot be reasonably estimated at this time, no amounts have been accrued for this matter at March 31, 2023.

Since the amounts of such costs cannot be reasonably estimated at this time, no amounts have been accrued for this matter at June 30, 2023.

The COVID-19 Pandemic.

26 unchanged sentences

Subsequent Events

On April 5, 2023, we amended our ABL to replace LIBOR-based loans with SOFR-based loans plus a 10 basis point adjustment, among other immaterial modifications.

On April 25, 2023 , our Board of Directors declared a dividend of $ 0.061 per share on our common stock, payable on or about May 22, 2023 to stockholders of record at the close of business on May 10, 2023 .

On July 26, 2023 , our Board of Directors declared a dividend of $ 0.061 per share on our common stock, payable on or about August 21, 2023 to stockholders of record at the close of business on August 10, 2023 .

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