What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-28 · 136 added, 81 removed, 361 unchanged (38% of the section changed)

33 unchanged sentences

1 billion shares authorized;

360,255,938 and 360,803,354 shares issued and outstanding at March 31, 2026 and December 31, 2025

357,299,308 and 360,803,354 shares issued and outstanding at June 30, 2026 and December 31, 2025

Additional paid-in capital

8 unchanged sentences

(In millions, except per share data)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Cost of revenue

3 unchanged sentences

Interest income

Equity loss in unconsolidated affiliates

Other income (expense), net

Equity income (loss) in unconsolidated affiliates

Other expense, net

Net income before income taxes

8 unchanged sentences

(In millions)

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Currency translation adjustments

7 unchanged sentences

(In millions)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

14 unchanged sentences

Purchases of property, plant and equipment

Business acquisitions, net of cash acquired

Proceeds from sales of fixed assets

Net cash used in investing activities

28 unchanged sentences

Balance at March 31, 2026

Other comprehensive loss

Cash dividends, $ 0.18 per common share

Transactions with non-controlling interests

Stock-based compensation

Stock options exercised

Share repurchases

Balance at June 30, 2026

Shares Issued

11 unchanged sentences

Balance at March 31, 2025

Other comprehensive income

Cash dividends, $ 0.285 per common share

Transactions with non-controlling interests

Stock-based compensation

Share repurchases

Balance at June 30, 2025

See notes to unaudited consolidated financial statements.

6 unchanged sentences

In our opinion, the consolidated financial statements include all adjustments, which are of a normal recurring nature unless otherwise disclosed, necessary for a fair presentation of the results for the interim periods.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the full year.

The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported and contingent amounts of assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the reporting period.

4 unchanged sentences

Inventories consist of (in millions):

March 31, 2026

June 30, 2026

December 31, 2025

5 unchanged sentences

Accrued liabilities consist of (in millions):

March 31, 2026

June 30, 2026

December 31, 2025

3 unchanged sentences

Balance at December 31, 2025

Accumulated other comprehensive income before reclassifications

Accumulated other comprehensive loss before reclassifications

Amounts reclassified from accumulated other comprehensive loss

Balance at March 31, 2026

The components of amounts reclassified from accumulated other comprehensive loss during the three months ended March 31, 2026 represent gains and losses reclassified on cash flow hedges when the hedged transaction occurs (see Note 11 to the Consolidated Financial Statements for further discussion) and the amortization of net actuarial gains and losses, prior service credits, settlements, and curtailments, which are included in the computation of net periodic pension cost.

The Company has two reportable segments, Energy Products and Services, and Energy Equipment, based on the products and services provided, customer base, and operating environment.

Balance at June 30, 2026

The components of amounts reclassified from accumulated other comprehensive loss during the three and six months ended June 30, 2026 represent gains and losses reclassified on cash flow hedges when the hedged transaction occurs (see Note 11 to the Consolidated Financial Statements for further discussion) and the amortization of net actuarial gains and losses, prior service credits, settlements, and curtailments, which are included in the computation of net periodic pension cost.

The Company has two reportable segments, Energy Equipment and Energy Products and Services, based on the products and services provided, customer base, and operating environment.

These reportable segments are determined as those businesses for which results are reviewed regularly by our Chief Executive Officer , who is identified as the Chief Operating Decision Maker (“CODM”), in allocating resources and assessing performance.

The following tables present financial data by business segment (in millions):

Three Months Ended March 31,

Energy Products and Services

Three Months Ended June 30,

Energy Equipment

1 unchanged sentence

Energy Equipment

Energy Products and Services

Revenue from external customers

5 unchanged sentences

Depreciation and amortization

(Gain) loss on sales of fixed assets

Gain on sales of fixed assets

Total significant segment expenses

1 unchanged sentence

Segment operating profit

Three Months Ended March 31,

Three Months Ended June 30,

Energy Equipment

Energy Products and Services

and corporate costs (2)

Energy Equipment

Energy Products and Services

and corporate costs (2)

Segment operating profit

Corporate and other unallocated (3)

Interest and financial costs

Interest income

Equity income (loss) in unconsolidated affiliates

Other expenses, net

Income before income taxes

Other segment information:

Capital expenditures

Six Months Ended June 30,

Energy Equipment

Energy Products and Services

Energy Equipment

Energy Products and Services

Revenue from external customers

Intersegment revenue

Total revenue

Less significant segment expenses:

Cost of revenue

Selling, general, and administrative

Depreciation and amortization

Goodwill and long-lived asset impairment

Gain on sales of fixed assets

Total significant segment expenses

Other segment items (1)

Segment operating profit

Six Months Ended June 30,

Energy Equipment

Energy Products and Services

and corporate costs (2)

Energy Equipment

Energy Products and Services

and corporate costs (2)

Segment operating profit

15 unchanged sentences

Also included in the eliminations and corporate costs column are capital expenditures and total assets related to corporate.

Corporate assets consist primarily of cash and fixed assets.

Corporate assets consist primarily of cash, fixed assets, and right-of-use assets.

(3) Includes certain corporate expenses not allocated to the segments, restructuring related to centrally managed initiatives and other non-recurring items.

2 unchanged sentences

In the table below, North America includes only the U.S.

Three Months Ended March 31,

Three Months Ended June 30,

North America

2 unchanged sentences

Intersegment revenue

In the table below, the revenue streams of the Energy Products and Services segment are categorized as services and rentals, sales of shorter-lived capital equipment, and sales of consumable products.

The revenue streams of Energy Equipment are categorized as long-lived capital equipment sales and aftermarket sales and services.

Three Months Ended March 31,

Six Months Ended June 30,

North America

International

Intersegment revenue

In the table below, the revenue streams of Energy Equipment are categorized as long-lived capital equipment sales and aftermarket sales and services.

The revenue streams of the Energy Products and Services segment are categorized as services and rentals, sales of shorter-lived capital equipment, and sales of consumable products.

Three Months Ended June 30,

Energy Equipment:

Capital equipment

Intersegment revenue

Energy Products and Services:

3 unchanged sentences

Intersegment revenue

Total consolidated

Six Months Ended June 30,

Energy Equipment:

1 unchanged sentence

Intersegment revenue

Energy Products and Services:

Services & rental

Capital equipment

Product sales

Intersegment revenue

Total consolidated

Performance Obligations

Net revenue recognized from performance obligations satisfied in previous periods was not material for the three months ended March 31, 2026.

Net revenue recognized from performance obligations satisfied in previous periods was not material for the six months ended June 30, 2026.

Remaining performance obligations represent the transaction price of firm orders for all revenue streams for which work has not been performed on contracts with original expected duration of one year or more.

We do not disclose the remaining performance obligations of royalty contracts, service contracts for which there is a right to invoice, and short-term contracts that are expected to have a duration of one year or less.

As of March 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4,615 million.

As of June 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 4,443 million.

Although numerous factors can affect timing of revenue recognized on performance obligations, such as customer change orders, supplier accelerations or delays, and the current uncertainty and conflict in the Middle East, the Company expects to recognize approximately $ 1,071 million in revenue for the remaining performance obligations in the remainder of 2026 , $ 1,588 million in 2027 , $ 586 million in 2028 , and $ 1,198 million thereafter .

1 unchanged sentence

Contract assets include unbilled amounts when revenue recognized exceeds the amount billed to the customer under contracts where revenue is recognized over-time.

There were no impairment losses recorded on contract assets for the three months ended March 31, 2026 and 2025.

There were no impairment losses recorded on contract assets for the three and six months ended June 30, 2026 and 2025.

Contract liabilities consist of advance payments, billings in excess of revenue recognized and deferred revenue.

3 unchanged sentences

Currency translation adjustments and other

Balance at March 31, 2026

Balance at June 30, 2026

Allowance for Credit Losses

1 unchanged sentence

The Company’s customer base, mostly in the oil and gas industry, have generally similar collectability risk characteristics, although larger and state-owned customers may have lower risk than smaller independent customers.

As of March 31, 2026, the allowance for credit losses on accounts receivable and contract assets totaled $ 54 million.

As of June 30, 2026, the allowance for credit losses on accounts receivable and contract assets totaled $ 52 million.

The changes in the carrying amount of the allowance for credit losses are as follows (in millions):

3 unchanged sentences

Reclass for long-term receivables

Balance at March 31, 2026

Balance at June 30, 2026

The Company leases certain facilities and equipment to support its operations around the world.

6 unchanged sentences

Components of leases are as follows (in millions):

March 31, 2026

June 30, 2026

December 31, 2025

Current portion of lease liabilities:

March 31, 2026

December 31, 2025

Long-term portion of lease liabilities:

Debt consists of (in millions):

March 31, 2026

June 30, 2026

December 31, 2025

$ 1.1 billion in Senior Notes, interest at 3.95 % payable

semiannually, principal due on December 1, 2042

$ 0.5 billion in Senior Notes, interest at 3.60 % payable

semiannually, principal due on December 1, 2029

$ 1.1 billion in Senior Notes, interest at 3.95 % payable semiannually, principal due on December 1, 2042

$ 0.5 billion in Senior Notes, interest at 3.60 % payable semiannually, principal due on December 1, 2029

Less current portion

Long-term debt

On March 17, 2026, the Company extended the maturity date of the revolving credit facility by one additional year to September 12, 2030 .

The revolving credit facility has a borrowing capacity of $ 1.5 billion through September 12, 2030 .

The Company has a revolving credit facility with a borrowing capacity of $ 1.5 billion through September 12, 2030 .

The Company has the right to increase the aggregate commitments under this agreement to an aggregate amount of up to $ 2.5 billion upon the consent of only those lenders holding any such increase.

1 unchanged sentence

The credit facility contains a financial covenant establishing a maximum debt-to-capitalization ratio of 60 %.

As of March 31, 2026, the Company was in compliance with a debt-to-capitalization ratio of 24.0 % and had no outstanding borrowings or letters of credits issued under the facility, resulting in $ 1.5 billion of available funds.

As of June 30, 2026, the Company was in compliance with a debt-to-capitalization ratio of 23.9 % and had no outstanding borrowings or letters of credit issued under the facility, resulting in $ 1.5 billion of available funds.

A consolidated joint venture of the Company borrowed $ 120 million against a $ 150 million bank line of credit, payable by June 2032 , for the construction of a facility in Saudi Arabia.

1 unchanged sentence

The bank line of credit contains a financial covenant regarding maximum debt-to-equity ratio of 75 %.

As of March 31, 2026, the joint venture was in compliance and will not have future borrowings on the line of credit.

As of March 31, 2026, the Company had $ 84 million in borrowings related to this line of credit.

As of June 30, 2026, the joint venture was in compliance and will not have future borrowings on the line of credit.

As of June 30, 2026, the Company had $ 78 million in borrowings related to this line of credit.

The carrying value of debt under the Company’s consolidated joint venture approximates fair value because the interest rates are variable and reflective of current market rates.

1 unchanged sentence

The Company can repay the entire outstanding facility balance without penalty at its sole discretion.

Other debt at March 31, 2026 included $ 42 million of amounts owed to current and former minority interest partners of NOV consolidated joint ventures, of which $ 16 million is due in the next twelve months.

The Company had $ 1,040 million of outstanding letters of credit at March 31, 2026, primarily in Norway and the United States, that are under various bilateral letter of credit facilities.

Other debt at June 30, 2026 included $ 38 million of amounts owed to current minority interest partners of NOV consolidated joint ventures, of which $ 2 million is due in the next twelve months.

The Company had $ 909 million of outstanding letters of credit at June 30, 2026, primarily in the United States and Norway, that are under various bilateral letter of credit facilities.

Letters of credit are issued as bid bonds, advanced payment bonds and performance bonds.

At March 31, 2026 and December 31, 2025 , the fair value of the Company’s unsecured Senior Notes approximated $ 1,349 million and $ 1,353 million, respectively.

At June 30, 2026 and December 31, 2025, the fair value of the Company’s unsecured Senior Notes approximated $ 1,345 million and $ 1,353 million, respectively.

The fair value of the Company’s debt is estimated using Level 2 inputs in the GAAP fair value hierarchy and is based on quoted prices for those of similar instruments.

At March 31, 2026 and December 31, 2025 , the carrying value of the Company’s unsecured Senior Notes approximated $ 1,589 million at both reporting dates.

The effective tax rate was 42.9 % and 38.8 % for the three months ended March 31, 2026, and 2025 , respectively, as compared to the U.S.

statutory tax rate of 21 % for both periods.

The effective tax rate for the three months ended March 31, 2026 was negatively impacted by a mix of earnings in higher tax rate jurisdictions and a shortfall related to previously recognized stock compensation deductibility.

The effective tax rate for the three months ended March 31, 2025 was negatively impacted by a mix of earnings in higher tax rate jurisdictions, unfavorable adjustments related to changes in certain foreign currency exchange rates, a shortfall related to previously recognized stock compensation deductibility, and adjustments to the carrying value of deferred tax assets, partially offset by a benefit from withholding tax refunds received.

At June 30, 2026 and December 31, 2025 , the carrying value of the Company’s unsecured Senior Notes approximated $ 1,589 million at both reporting dates.

The effective tax rate for the three and six months ended June 30, 2026 was 26.1 % and 29.2 % , respectively, compared to 0.9 % and 20.3 % for the same period in 2025.

statutory tax rate was 21 % for all periods.

The effective tax rate for the three months ended June 30, 2026 was negatively impacted by a mix of earnings in higher tax rate jurisdictions, partially offset by the release of previously recorded reserves for unrecognized tax benefits and adjustments to prior year taxes.

The effective tax rate for the six months ended June 30, 2026 was negatively impacted by a mix of earnings in higher tax rate jurisdictions and a shortfall related to previously recognized stock compensation deductibility, partially offset by the release of previously recorded reserves for unrecognized tax benefits and adjustments to prior year taxes.

The effective tax rate for the six months ended June 30, 2025 was positively impacted by the release of previously recorded reserves for unrecognized tax benefits of $ 58 million, partially offset by an increase to reserves for unrecognized tax benefits of $ 23 million, unfavorable adjustments related to the carrying value of deferred tax assets of $ 14 million, changes in certain foreign currency exchange rates of $ 4 million, and a mix of earnings in higher tax rate jurisdictions.

Stock-Based Compensation

3 unchanged sentences

The number of shares authorized under the NOV Plan is 70.9 million.

At March 31, 2026 , approximately 13 million shares remained available for future grants under the NOV Plan.

At June 30, 2026 , approximately 13.7 million shares remained available for future grants under the NOV Plan.

The Company also has outstanding awards under its former stock-based compensation plan known as the National Oilwell Varco, Inc.

1 unchanged sentence

however, the Company is no longer granting new awards under the Former Plan.

On February 18, 2026, under the NOV Plan, the Company granted 2,165,773 restricted stock units (“RSUs”) with a fair value of $ 19.99 per share, and performance share awards (“PSAs”) to senior management employees with potential payouts varying from zero to 1,522,052 shares in the aggregate.

The restricted stock units vest in three equal annual installments commencing on the first anniversary of the grant date.

The 2026 PSAs can be earned based on performance against two established goals over a three-year period :

TSR (total shareholder return) goal and ROCE (“Return on Capital Employed”, a return on capital metric) goal.

TSR performance is determined by comparing the Company’s TSR with the TSR of the members of the Philadelphia Stock Exchange’s Oil Services Sector Index (OSX) for the three-year performance period.

The TSR portion of the performance share awards is subject to a vesting cap equal to 100% of Target Level if the Company’s absolute TSR is negative, regardless of relative TSR results.

Conversely, if the Company’s absolute TSR is greater than 15% annualized over the three-year performance period, the payout amount shall not be less than 50% of Target Level, regardless of relative TSR results.

The ROCE goal is based on the Company’s ROCE using the Company’s consolidated financial results from January 1, 2028 until December 31, 2028.

ROCE shall be an amount equal to the Company’s (a) adjusted operating profit for the performance period, multiplied by (b) (1 - an assumed tax rate of 23%) divided by (c) the average of the Company’s total capital employed as of beginning of the performance period and the end of the performance period, with “total capital employed” equal to the Company’s (i) total stockholders’ equity plus (ii) long-term debt (including the current portion) less (iii) cash and cash equivalents.

Total expense for all stock-based compensation arrangements was $ 26 million for the three months ended March 31, 2026 , which included a non-recurring charge of $ 12 million, and $ 16 million for the three months ended March 31, 2025.

The total income tax expense recognized in the Consolidated Statements of Income for stock-based compensation arrangements for the three months ended March 31, 2026, and 2025 was zero and $ 9 million, respectively.

On May 20, 2026, under the NOV Plan, the Company granted 75,656 restricted stock units (“RSUs”) with a fair value of $ 21.15 per share.

The awards were granted to non-employee members of the board of directors and vest on the first anniversary of the grant date.

Total expense for all stock-based compensation arrangements was $ 15 million and $ 41 million for the three and six months ended June 30, 2026, respectively, and $ 17 million and $ 33 million for the three and six months ended June 30, 2025, respectively.

The total income tax expense (benefit) recognized in the Consolidated Statements of Income for stock-based compensation arrangements was $( 2 ) million for each of the three and six months ended June 30, 2026 , respectively, and $( 3 ) million and $ 6 million for the three and six months ended 2025 , respectively.

Derivative Financial Instruments

4 unchanged sentences

Currency Denomination

March 31, 2026

June 30, 2026

December 31, 2025

7 unchanged sentences

The Company includes time value in hedge relationships.

The Company expects accumulated other comprehensive income of $ 3 million will be reclassified into earnings within the next twelve months.

The Company expects accumulated other comprehensive loss of $ 2 million will be reclassified into earnings within the next twelve months.

Non-designated Hedging Strategy

The Company enters into forward exchange contracts to hedge certain nonfunctional currency monetary accounts.

The gain or loss on the derivative instrument is recognized in earnings in other income (expense), together with the changes in the hedged nonfunctional monetary accounts.

The amount of gain recognized in other income (expense), net was zero for the three months ended March 31, 2026, and $ 3 million for the three months ended March 31, 2025.

The gain or loss on the derivative instrument is recognized in earnings in “other expense, net”, together with the changes in the hedged nonfunctional monetary accounts.

The amount of gain (loss) recognized in “other expense, net” was $ ( 1 ) million for both the three and six months ended June 30, 2026, compared to $ 13 million and $ 16 million for the three and six months ended June 30, 2025, respectively.

The Company has the following fair values of its derivative instruments and their balance sheet classifications (in millions):

3 unchanged sentences

Balance Sheet

Derivatives designated as hedging instruments under ASC Topic 815

Derivatives designated as hedging instruments

Foreign exchange contracts

4 unchanged sentences

Designated total

Derivatives not designated as hedging instruments under ASC Topic 815

Derivatives not designated as hedging instruments

Foreign exchange contracts

6 unchanged sentences

The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Net income attributable to Company

Basic—weighted average common shares outstanding

Dilutive effect of employee stock options and other

unvested stock awards

Dilutive effect of employee stock options and other unvested stock awards

Diluted—weighted average common shares outstanding

3 unchanged sentences

The two-class method requires a portion of net income attributable to Company to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents if declared.

Net income attributable to the Company allocated to these participating securities was immaterial for each of the three months ended March 31, 2026 and 2025 , respectively.

The Company had stock options outstanding that were anti-dilutive totaling 12 million shares for the three months ended March 31, 2026, compared to 15 million shares for the three months ended March 31, 2025 .

Net income attributable to the Company allocated to these participating securities was immaterial for each of the three and six months ended June 30, 2026 and 2025 , respectively.

The Company had stock options and restricted shares ou tstanding that were anti-dilutive totaling 6 million and 7 million shares for the three and six months ended June 30, 2026, compared to 19 million and 16 million shares for the three and six months ended June 30, 2025 .

Cash Dividends

Cash dividends were $ 33 million for the three months ended March 31, 2026 , compared to $ 28 million for the three months ended March 31, 2025.

Cash dividends were $ 64 million and $ 97 million for the three and six months ended June 30, 2026, compared to $ 107 million and $ 135 million for the three and six months ended June 30, 2025.

The declaration and payment of future dividends is at the discretion of the Company’s Board of Directors and will be dependent upon the Company’s results of operations, financial condition, capital requirements and other factors deemed relevant by the Company’s Board of Directors.

8 unchanged sentences

As shares are repurchased, they are constructively retired and returned to an unissued state.

During the three months ended March 31, 2026 , the Company repurchased approximately 3.5 million shares of common stock under the program for an aggregate amount of $ 67 million.

During the three months ended March 31, 2025 , the Company repurchased approximately 5.4 million shares of common stock under the program for an aggregate amount of $ 81 million.

During the three and six months ended June 30, 2026, the Company repurchased approximately 3.2 million shares of common stock under the program for an aggregate amount of $ 63 million and 6.7 million shares of common stock under the program for an aggregate amount of $ 130 million, respectively.

During the three and six months ended June 30, 2025, the Company repurchased approximately 5.5 million shares of common stock under the program for an aggregate amount of $ 69 million, and 10.9 million shares of common stock under the program for an aggregate amount of $ 150 million, respectively.

Commitments and Contingencies

From time to time, the Company is involved in various claims, regulatory agency audits, investigations and legal actions involving a variety of matters.

As of March 31, 2026, in the ordinary course of business, the Company recorded reserves in an amount believed to be sufficient, given the estimated range of potential outcomes, for contingent liabilities believed to be probable.

As of June 30, 2026, in the ordinary course of business, the Company recorded reserves in an amount believed to be sufficient, given the estimated range of potential outcomes, for contingent liabilities believed to be probable.

These estimated liabilities are based on the Company’s assessment of the nature of these matters, their progress toward resolution, the advice of legal counsel and outside experts as well as management’s experience.

9 unchanged sentences

We have submitted Consolidated Administration and Processing of Entries (“CAPE”) Declarations for International Emergency Economic Powers Act (“IEEPA”) duty refunds and are closely monitoring developments to better understand the government’s next steps.

Our first-quarter 2026 financial results do not reflect any potential benefit from such refunds.

For the three months ended June 30, 2026 , we have recorded a benefit of approximately $ 40 million, within “Cost of revenue” in the Consolidated Statements of Income to reflect any benefit from such refunds, of which we have received $ 17 million through June 30, 2026.

The remaining outstanding balance is reported within “Receivables, net” in the Consolidated Balance Sheets.

The Company is currently pursuing litigation against several companies involving royalties due under licenses for technology related to drill bits.

6 unchanged sentences

These companies have asserted, among other reasons, that they are entitled to stop making these payments because they claim to not manufacture products covered by the unexpired patents.

Some of these companies stopped making payments after the expiration of what are allegedly the patents in the portfolio that they elected to use.

Some of these companies stopped making payments upon expiration of what are allegedly the patents in the portfolio that they elected to use.

Others paid for some period of time after that date but have since stopped making payments.

12 unchanged sentences

4:25-cv-03459, all in the United States District Court for the Southern District of Texas.

We have also recently initiated litigation against Taurex Drill Bits.

The legal filings to date can be found in the case Grant Prideco, Inc., et al.

We have also subsequently initiated litigation against Taurex Drill Bits.

The legal filings to date for that proceeding can be found in the case Grant Prideco, Inc., et al.

Taurex Drill Bits, L.L.C., No.

7 unchanged sentences

Of course, there is inherent risk with the related litigation and the Company makes no assurances as to the outcome of such litigation.

As of March 31, 2026, royalty receivables of $ 137 million, net of related reserves of $ 78 million and the remaining timing related discount of $ 43 million, are included in “Other assets” on the Consolidated Balance Sheets.

As of June 30, 2026 , royalty receivables of $ 140 million, net of related reserves of $ 78 million and the remaining timing related discount of $ 40 million, are included in “Other assets” on the Consolidated Balance Sheets.

While we continue to believe it is probable the Company will collect all or substantially all of the consideration to which it is entitled pursuant to the terms of the licensing agreements, the Company will also continue to evaluate the collectability of the receivables in accordance with t he allowance for credit losses p olicy described in Note 6.

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