What changed in this filing

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Item 1. Financial Statements

2024-11-05 compared with 2024-08-06 · 94 added, 66 removed, 500 unchanged (24% of the section changed)

3 unchanged sentences

(in thousands, except unit amounts)

September 30,

2024 December 31,

10 unchanged sentences

Lease right-of-use assets 15,374 17,290

Derivative instrument, long term 1,040 —

Identifiable intangible assets, net 223,618 245,652

23 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

14 unchanged sentences

Loss on extinguishment of debt — — ( 4,966 ) —

Gain on derivative instrument 3,131 14,550 11,902 14,550

Gain (loss) on derivative instrument ( 6,218 ) 3,437 5,684 17,987

Other 23 23 83 104

7 unchanged sentences

Weighted-average common units outstanding – diluted 118,256 100,263 113,296 99,915

Basic net income per common unit $ 0.23 $ 0.12 $ 0.42 $ 0.10

Diluted net income per common unit $ 0.23 $ 0.11 $ 0.42 $ 0.10

Basic and diluted net income per common unit $ 0.13 $ 0.09 $ 0.54 $ 0.19

Distributions declared per common unit for respective periods $ 0.525 $ 0.525 $ 1.575 $ 1.575

17 unchanged sentences

Partners’ deficit ending balance, June 30, 2024 ( 61,168 )

Distributions and DERs, $ 0.525 per unit

Issuance of common units under the DRIP 354

Unit-based compensation for equity classified awards 83

Net income attributable to common unitholders’ interests 14,939

Partners’ deficit ending balance, September 30, 2024

$ ( 107,254 )

Common units Warrants Total

17 unchanged sentences

( 217,002 ) 8,812 ( 208,190 )

Distributions and DERs, $ 0.525 per unit

( 51,628 ) — ( 51,628 )

Issuance of common units under the DRIP 414 — 414

Unit-based compensation for equity classified awards 69 — 69

Net income attributable to common unitholders’ interests 8,714 — 8,714

Partners’ capital (deficit) ending balance, September 30, 2023

$ ( 259,433 ) $ 8,812 $ ( 250,621 )

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

4 unchanged sentences

Unit-based compensation expense 11,000 17,652

Deferred income tax expense 97 19

Deferred income tax expense (benefit) 427 ( 46 )

Loss (gain) on disposition of assets 1,113 ( 3,932 )

14 unchanged sentences

Proceeds from disposition of property and equipment 742 5,122

Proceeds from insurance recovery — 535

Net cash used in investing activities ( 175,094 ) ( 153,391 )

9 unchanged sentences

Net cash used in financing activities ( 35,977 ) ( 26,919 )

Decrease in cash and cash equivalents ( 2 ) ( 4 )

Increase (decrease) in cash and cash equivalents 68 ( 29 )

Cash and cash equivalents, beginning of period 11 35

4 unchanged sentences

(in thousands)

Nine Months Ended September 30,

Supplemental cash flow information:

24 unchanged sentences

In the opinion of our management, financial information presented herein reflects all normal recurring adjustments necessary for the fair presentation of these interim unaudited condensed consolidated financial statements in accordance with GAAP.

Operating results for the three and six months ended June 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Operating results for the three and nine months ended September 30, 2024, are not necessarily indicative of the results that may be expected for the year ending December 31, 2024.

Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted in accordance with SEC rules and regulations.

26 unchanged sentences

Capitalized interest is calculated by multiplying our monthly effective interest rate on outstanding variable-rate indebtedness by the amount of qualifying costs, which include upfront payments to acquire certain compression units.

Capitalized interest was $ 21 thousand and $ 56 thousand for the three and six months ended June 30, 2024, respectively, and $ 0.3 million and $ 0.6 million for the three and six months ended June 30, 2023 , respectively.

Capitalized interest was $ 0.1 million and $ 0.1 million for the three and nine months ended September 30, 2024, respectively, and $ 0.2 million and $ 0.8 million for the three and nine months ended September 30, 2023 , respectively.

Impairment of Long-Lived Assets

5 unchanged sentences

The fair value of the asset is measured using quoted market prices or, in the absence of quoted market prices, based on an estimate of discounted cash flows, the expected net sale proceeds compared to the other similarly configured fleet units that we recently sold or a review of other units recently offered for sale by third parties, or the estimated component value of the equipment we plan to continue using.

Refer to Note 5 for more detailed information about impairment charges during the three and six months ended June 30, 2024 and 2023.

Refer to Note 5 for more detailed information about impairment charges during the three and nine months ended September 30, 2024 and 2023.

Identifiable Intangible Assets

27 unchanged sentences

Level 3 inputs are unobservable inputs for the asset or liability.

As of June 30, 2024, and December 31, 2023, our financial instruments primarily consisted of cash and cash equivalents, trade accounts receivable, trade accounts payable, a derivative instrument, and long-term debt.

As of September 30, 2024 and December 31, 2023, our financial instruments primarily consisted of cash and cash equivalents, trade accounts receivable, trade accounts payable, and long-term debt.

As of December 31, 2023, our financial instruments also consisted of a derivative instrument.

The book values of cash and cash equivalents, trade accounts receivable, and trade accounts payable are representative of fair value due to their short-term maturities.

3 unchanged sentences

The following table summarizes the aggregate principal amount and fair value of our Senior Notes 2026, Senior Notes 2027, and Senior Notes 2029 (in thousands):

September 30,

2024 December 31,

5 unchanged sentences

Fair value of Senior Notes 2029 1,027,500 —

The fair value of our derivative instrument, which is an interest-rate swap, was estimated based on inputs from actively quoted public markets, including interest-rate forward curves, and is considered a Level 2 measurement.

The fair value of our derivative instrument, which was an interest-rate swap and is no longer outstanding as of September 30, 2024, was estimated based on inputs from actively quoted public markets, including interest-rate forward curves, and is considered a Level 2 measurement.

We consider counterparty credit risk and our own credit risk in the determination of the estimated fair value.

The following table summarizes the gross fair value of our interest-rate swap (in thousands):

September 30,

2024 December 31,

4 unchanged sentences

(3) Trade Accounts Receivable

The allowance for credit losses, which was $ 2.3 million at both June 30, 2024 and December 31, 2023, represents our best estimate of the amount of probable credit losses included within our existing accounts receivable balance.

The allowance for credit losses, which was $ 2.3 million at both September 30, 2024 and December 31, 2023, represents our best estimate of the amount of probable credit losses included within our existing accounts receivable balance.

(4) Inventories

Components of inventories are as follows (in thousands):

September 30,

2024 December 31,

5 unchanged sentences

Property and equipment consisted of the following (in thousands):

September 30,

2024 December 31,

15 unchanged sentences

Depreciation expense on property and equipment and loss (gain) on disposition of assets were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

2 unchanged sentences

On a quarterly basis, we evaluate the future deployment of our idle fleet assets under current market conditions.

For the three and six months ended June 30, 2024, we retired two compression units representing approximately 1,300 of aggregate horsepower that previously were used to provide compression services in our business.

As a result, we recorded an impairment of compression equipment of $ 0.3 million for the three and six months ended June 30, 2024.

For the three and six months ended June 30, 2023, we retired 33 and 39 compression units, respectively, representing approximately 26,900 and 35,600 of aggregate horsepower, respectively, that previously were used to provide compression services in our business.

As a result, we recorded impairments of compression equipment of $ 10.3 million and $ 11.5 million for the three and six months ended June 30, 2023, respectively.

For the nine months ended September 30, 2024, we retired two compression units representing approximately 1,300 of aggregate horsepower that previously were used to provide compression services in our business.

As a result, we recorded an impairment of compression equipment of $ 0.3 million for the nine months ended September 30, 2024.

No impairment of compression equipment was recorded for the three months ended September 30, 2024.

For the three and nine months ended September 30, 2023, we retired three and 42 compression units, respectively, representing approximately 2,100 and 37,700 of aggregate horsepower, respectively, that previously were used to provide compression services in our business.

As a result, we recorded impairments of compression equipment of $ 0.9 million and $ 12.3 million for the three and nine months ended September 30, 2023, respectively.

The primary circumstances supporting these impairments were:

6 unchanged sentences

Amortization expense ( 19,578 ) ( 2,456 ) ( 22,034 )

Net balance as of June 30, 2024 $ 211,587 $ 19,375 $ 230,962

Accumulated amortization of intangible assets was $ 319.7 million and $ 305.0 million as of June 30, 2024 and December 31, 2023, respectively.

Net balance as of September 30, 2024 $ 205,061 $ 18,557 $ 223,618

Accumulated amortization of intangible assets was $ 327.0 million and $ 305.0 million as of September 30, 2024 and December 31, 2023, respectively.

(6) Other Current Liabilities

Components of other current liabilities included the following (in thousands):

September 30,

2024 December 31,

2 unchanged sentences

Accrued capital expenditures 8,479 13,672

Accrued payroll and benefits 15,142 7,055

Accrued property taxes 9,441 3,729

(7) Derivative Instrument

As of June 30, 2024 and December 31, 2023, we had an interest-rate swap outstanding to manage interest-rate risk associated with the floating-rate Credit Agreement.

The interest-rate swap’s notional principal amount is $ 700 million and has a termination date of December 31, 2025.

Under the interest-rate swap, we pay a fixed interest rate of 3.9725 % and receive floating interest-rate payments that are indexed to the one-month SOFR.

We do not apply hedge accounting to our currently outstanding derivative.

Our derivative is carried on the unaudited condensed consolidated balance sheets at fair value and is classified as current or long-term depending on the expected timing of settlement, and gains and losses associated with the derivative instrument are recognized currently in gain on derivative instrument within the unaudited condensed consolidated statements of operations.

Cash flows related to cash settlements for the periods presented are classified as operating activities within the unaudited condensed consolidated statements of cash flows.

As of December 31, 2023, we had an interest-rate swap outstanding to manage interest-rate risk associated with the floating-rate Credit Agreement.

In August 2024, we elected to terminate the outstanding interest-rate swap.

The interest-rate swap’s notional principal amount was $ 700 million and had an original termination date of December 31, 2025.

Under the interest-rate swap, we paid a fixed interest rate of 3.9725 % and received floating interest-rate payments that were indexed to the one-month SOFR.

We did not apply hedge accounting to our previously outstanding derivative.

Our derivative was carried on the unaudited condensed consolidated balance sheets at fair value and was classified as current or long-term depending on the expected timing of settlement, and gains and losses associated with the derivative instrument were recognized currently in gain (loss) on derivative instrument within the unaudited condensed consolidated statements of operations.

Cash flows related to cash settlements for the periods presented were classified as operating activities within the unaudited condensed consolidated statements of cash flows.

The following table summarizes the location and fair value of our derivative instrument on our unaudited condensed consolidated balance sheets (in thousands):

Assets Liabilities

Balance Sheet Classification June 30,

Balance Sheet Classification September 30,

2024 December 31,

2023 June 30,

2023 September 30,

2024 December 31,

2 unchanged sentences

The following table summarizes the location and amounts recognized related to our derivative instrument within our unaudited condensed consolidated statements of operations (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

Income Statement Classification 2024 2023 2024 2023

Gain on derivative instrument $ 3,131 $ 14,550 $ 11,902 $ 14,550

Gain (loss) on derivative instrument $ ( 6,218 ) $ 3,437 $ 5,684 $ 17,987

(8) Debt Obligations

Our debt obligations, of which there is no current portion, consisted of the following (in thousands):

September 30,

2024 December 31,

14 unchanged sentences

restricted subsidiaries (subject to customary exceptions).

As of June 30, 2024, we had outstanding borrowings under the Credit Agreement of $ 756.2 million and, after accounting for outstanding letters of credit in the amount of $ 0.5 million, $ 843.3 million of remaining unused availability, of which, due to restrictions related to compliance with the applicable financial covenants, $ 424.4 million was available to be drawn.

Our weighted-average interest rate in effect for all borrowings under the Credit Agreement for the six months ended June 30, 2024, was 7.98 %, and our weighted-average interest rate under the Credit Agreement as of June 30, 2024, was 8.10 %.

As of September 30, 2024, we had outstanding borrowings under the Credit Agreement of $ 803.2 million and, after accounting for outstanding letters of credit in the amount of $ 0.5 million, $ 796.3 million of remaining unused availability, of which, due to restrictions related to compliance with the applicable financial covenants, $ 641.8 million was available to be drawn.

Our weighted-average interest rate in effect for all borrowings under the Credit Agreement for the nine months ended September 30, 2024, was 7.98 %, and our weighted-average interest rate under the Credit Agreement as of September 30, 2024, was 7.50 %.

We pay an annualized commitment fee of 0.375 % on the unused portion of the aggregate commitment.

7 unchanged sentences

In addition, the Partnership may increase the applicable ratio by 0.25 for any fiscal quarter during which a Specified Acquisition (as defined in the Credit Agreement) occurs and for the following two fiscal quarters, but in no event shall the maximum ratio exceed 5.50 to 1.00 for any fiscal quarter as a result of such increase.

As of June 30, 2024, we were in compliance with all of our covenants under the Credit Agreement.

As of September 30, 2024, we were in compliance with all of our covenants under the Credit Agreement.

For purposes of the above covenants, EBITDA is calculated as set forth in the Credit Agreement.

15 unchanged sentences

The indenture governing the Senior Notes 2029 (the “2029 Indenture”) contains certain financial covenants that we must comply with in order to make certain restricted payments as described in the 2029 Indenture.

As of June 30, 2024, we were in compliance with such financial covenants under the 2029 Indenture.

As of September 30, 2024, we were in compliance with such financial covenants under the 2029 Indenture.

The Senior Notes 2029 are fully and unconditionally guaranteed (the “2029 Guarantees”), jointly and severally, on a senior unsecured basis by all of our existing subsidiaries (other than Finance Corp), and will be fully and unconditionally guaranteed, jointly and severally, by each of our future restricted subsidiaries that either borrows under, or guarantees, the Credit Agreement or guarantees certain of our other indebtedness (collectively, the “Guarantors”).

The Senior Notes 2029 and the 2029 Guarantees are general unsecured obligations and rank equally in right of payment with all of the Guarantors’, Finance Corp’s, and our existing and future senior indebtedness and senior to the Guarantors’, Finance Corp’s, and our future

subordinated indebtedness, if any.

The Senior Notes 2029 and the 2029 Guarantees effectively are subordinated in right of payment to all of the Guarantors’, Finance Corp’s, and our existing and future secured debt, including debt under the Credit Agreement and guarantees thereof, to the extent of the value of the assets securing such debt, and are structurally subordinate to all indebtedness of any of our subsidiaries that do not guarantee the Senior Notes 2029.

4 unchanged sentences

These securities generated sufficient cash upon maturity to fund interest payments on the Senior Notes 2026 occurring between the effective date of the Defeasance through April 4, 2024, when the Senior Notes 2026 were redeemed at par, as well as fund the redemption of the Senior Notes 2026 in full.

As a result of the Defeasance, we recognized a loss on early extinguishment of debt of $ 5.0 million for the six months ended June 30, 2024, which represents the write-off of deferred financing costs of $ 4.3 million and the difference between (i) the purchase price of U.S.

As a result of the Defeasance, we recognized a loss on early extinguishment of debt of $ 5.0 million for the nine months ended September 30, 2024, which represents the write-off of deferred financing costs of $ 4.3 million and the difference between (i) the purchase price of U.S.

government securities of $ 748.8 million and (ii) the aggregate outstanding principal balance and accrued interest of the Senior Notes 2026 of $ 748.1 million at the time of Defeasance.

4 unchanged sentences

The indenture governing the Senior Notes 2027 (the “2027 Indenture”) contains certain financial covenants that we must comply with in order to make certain restricted payments as described in the 2027 Indenture.

As of June 30, 2024, we were in compliance with such financial covenants under the 2027 Indenture.

As of September 30, 2024, we were in compliance with such financial covenants under the 2027 Indenture.

The Senior Notes 2027 are fully and unconditionally guaranteed (the “2027 Guarantees”), jointly and severally, on a senior unsecured basis by the Guarantors.

11 unchanged sentences

Exercise and conversion of Preferred Units into common units ( 320,000 )

Number of Preferred Units outstanding, June 30, 2024 180,000

Number of Preferred Units outstanding, September 30, 2024 180,000

Redemption and Conversion Features

19 unchanged sentences

May 3, 2024 24.375

August 2, 2024 24.375

Total 2024 distributions

Announced Quarterly Distribution

On July 11, 2024, we declared a cash distribution of $ 24.375 per unit on our Preferred Units.

The distribution was paid on August 2, 2024, to the holders of the Preferred Units of record as of the close of business on July 22, 2024.

On October 10, 2024, we declared a cash distribution of $ 24.375 per unit on our Preferred Units.

The distribution was paid on November 1, 2024, to the holders of the Preferred Units of record as of the close of business on October 21, 2024.

Changes in the Preferred Units’ balance are as follows (in thousands):

4 unchanged sentences

Net income allocated to Preferred Units 13,163

Balance as of June 30, 2024 $ 168,809

Balance as of September 30, 2024 $ 168,809

(10) Partners’ Deficit

4 unchanged sentences

Exercise and conversion of Preferred Units into common units 15,990,804

Number of common units outstanding, June 30, 2024 117,007,411

As of June 30, 2024, Energy Transfer held 46,056,228 common units, including 8,000,000 common units held by the General Partner and controlled by Energy Transfer.

Number of common units outstanding, September 30, 2024 117,022,833

As of September 30, 2024, Energy Transfer held 46,056,228 common units, including 8,000,000 common units held by the General Partner and controlled by Energy Transfer.

Cash Distributions

9 unchanged sentences

May 3, 2024 0.525 61.4 1.0 62.4

August 2, 2024 0.525 61.4 1.0 62.4

Total 2024 distributions

1 unchanged sentence

Announced Quarterly Distribution

On July 11, 2024, we announced a cash distribution of $ 0.525 per unit on our common units.

The distribution was paid on August 2, 2024, to common unitholders of record as of the close of business on July 22, 2024.

During the six months ended June 30, 2024, distributions of $ 0.8 million were reinvested under the DRIP resulting in the issuance of 30,596 common units.

On October 10, 2024, we announced a cash distribution of $ 0.525 per unit on our common units.

The distribution was paid on November 1, 2024, to common unitholders of record as of the close of business on October 21, 2024.

During the nine months ended September 30, 2024, distributions of $ 1.1 million were reinvested under the DRIP resulting in the issuance of 46,018 common units.

Income Per Unit

4 unchanged sentences

Diluted income per unit is computed using the treasury stock method, which considers the potential issuance of limited partner units associated with our long-term incentive plan and warrants.

Unvested phantom units and unexercised warrants are not included in basic income per unit, as they are not considered to be participating securities, but are included in the calculation

of diluted income per unit to the extent they are dilutive, and in the case of warrants to the extent they are considered “in the money.”

For the three and six months ended June 30, 2024, approximately 1,123,000 and 1,097,000 incremental unvested phantom units, respectively, represent the difference between our basic and diluted weighted-average common units outstanding.

For the three months ended June 30, 2023, approximately 1,177,000 and 246,000 incremental unvested phantom units and “in the money” then-outstanding warrants, respectively, represent the difference between our basic and diluted weighted-average common units outstanding.

For the six months ended June 30, 2023, approximately 1,118,000 and 361,000 incremental unvested phantom units and “in the money” then-outstanding warrants, respectively, represent the difference between our basic and diluted weighted-average common units outstanding.

Unvested phantom units and unexercised warrants are not included in basic income per unit, as they are not considered to be participating securities, but are included in the calculation of diluted income per unit to the extent they are dilutive, and in the case of warrants to the extent they are considered “in the money.”

For the three and nine months ended September 30, 2024, approximately 1,239,000 and 1,145,000 incremental unvested phantom units, respectively, represent the difference between our basic and diluted weighted-average common units outstanding.

For the three months ended September 30, 2023, approximately 1,316,000 and 655,000 incremental unvested phantom units and “in the money” then-outstanding warrants, respectively, represent the difference between our basic and diluted weighted-average common units outstanding.

For the nine months ended September 30, 2023, approximately 1,185,000 and 460,000 incremental unvested phantom units and “in the money” then-outstanding warrants, respectively, represent the difference between our basic and diluted weighted-average common units outstanding.

(11) Revenue Recognition

1 unchanged sentence

The following table disaggregates our revenue by type of service (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

3 unchanged sentences

The following table disaggregates our revenue by timing of provision of services or transfer of goods (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

8 unchanged sentences

Components of deferred revenue were as follows (in thousands):

Balance sheet location June 30,

Balance sheet location September 30,

2024 December 31,

3 unchanged sentences

________________________________

(1) We recognized $ 1.7 million and $ 59.0 million of revenue during the three and six months ended June 30, 2024, respectively, related to our deferred revenue balance as of December 31, 2023.

(1) We recognized $ 1.3 million and $ 60.4 million of revenue during the three and nine months ended September 30, 2024, respectively, related to our deferred revenue balance as of December 31, 2023.

Performance Obligations

As of June 30, 2024, the aggregate amount of transaction price allocated to unsatisfied performance obligations related to our contract operations revenue was $ 1.2 billion.

As of September 30, 2024, the aggregate amount of transaction price allocated to unsatisfied performance obligations related to our contract operations revenue was $ 1.2 billion.

We expect to recognize these remaining performance obligations as follows (in thousands):

3 unchanged sentences

(12) Transactions with Related Parties

We provide natural gas compression and treating services to entities affiliated with Energy Transfer, which as of June 30, 2024, owned approximately 39 % of our limited partner interests and 100 % of the General Partner.

We provide natural gas compression and treating services to entities affiliated with Energy Transfer, which as of September 30, 2024, owned approximately 39 % of our limited partner interests and 100 % of the General Partner.

Revenue recognized from those entities affiliated with Energy Transfer on our unaudited condensed consolidated statements of operations were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Related-party revenues $ 13,694 $ 5,216 $ 25,249 $ 15,759

We had approximately $ 0.1 million and $ 0 of related-party receivables on our unaudited condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively, from those entities affiliated with Energy Transfer.

We had approximately $ 7.2 million and $ 0 of related-party receivables on our unaudited condensed consolidated balance sheets as of September 30, 2024 and December 31, 2023, respectively, from those entities affiliated with Energy Transfer.

(13) Commitments and Contingencies

(a) Major Customers

One customer accounted for approximately 12 % and 10 % of total revenues for the three and six months ended June 30, 2024 and 2023, respectively.

One customer accounted for approximately 12 % of total revenues for the three and nine months ended September 30, 2024, respectively, and 11 % of total revenues for the three and nine months ended September 30, 2023, respectively.

(b) Litigation

6 unchanged sentences

We currently are protesting certain assessments made by the Oklahoma Tax Commission (“OTC”).

We believe it is reasonably possible that we could incur losses related to this assessment.

Whether, and to what extent, we incur losses depends on whether the administrative law judge assigned by the OTC accepts or rejects our position that the transactions are not taxable and, if rejected, whether we ultimately lose any and all subsequent legal challenges to such determination.

We estimate that the range of losses we could incur is from $ 0 to approximately $ 29.7 million, including penalties and interest.

In August 2024, the administrative law judge (“ALJ”) assigned by the OTC accepted our position that the transactions are not taxable.

The OTC subsequently requested a motion for reconsideration, which was denied by the ALJ.

The OTC has requested an “en banc” hearing from the OTC Commissioners, which request is pending.

The OTC also has other legal options to challenge this decision, accordingly a final resolution remains pending.

If we ultimately lose the current and all subsequent legal challenges, we estimate that the range of losses we could incur is from $ 0 to approximately $ 30.3 million, including penalties and interest.

federal income tax returns for the years 2019 and 2020 currently are under examination by the Internal Revenue Service (“IRS”).

21 unchanged sentences

ASU 2023-07 is to be applied on a retrospective basis.

We are currently evaluating the impact of the amendments to ASU 2023-07 on our consolidated financial statements and related disclosures.

ASU 2023-07 will require additional disclosures in the notes to our consolidated financial statements.

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