KBR, INC. Introduction
The purpose of MD&A is to disclose material changes in our financial condition since the most recent fiscal year-end and results of operations during the current fiscal period as compared to the corresponding period of the preceding fiscal year. The MD&A should be read in conjunction with the condensed consolidated financial statements, accompanying notes and our 2022 Annual Report on Form 10-K.
Overview
KBR, Inc. , aDelaware corporation ("KBR"), delivers science, technology, engineering and logistics support solutions to governments and companies around the world. Drawing from its rich 100-year history and culture of innovation and mission focus, KBR creates sustainable value by combining deep domain expertise with its full life cycle capabilities to help clients meet their most pressing challenges. Our capabilities and offerings include the following: •Scientific research such as quantum science and computing; health and human performance; materials science; life science research; and earth sciences; •Defense systems engineering such as rapid prototyping; test and evaluation; aerospace acquisition support; systems and platform integration; and sustainment engineering; •Operational support such as space domain awareness; C5ISR; human spaceflight and satellite operations; integrated supply chain and logistics; and military aviation support; •Information operations such as cyber analytics and cybersecurity; data analytics; mission planning systems; virtual/augmented reality and technical training; and artificial intelligence and machine learning; •Professional advisory services across the defense, renewable energy and critical infrastructure sectors; and •Sustainable decarbonization solutions that accelerate and enable energy transition and climate change solutions such as proprietary, sustainability-focused process licensing; advisory services focused on energy transition; high-end engineering, design and management program offerings; and digitally-enabled asset optimization solutions. KBR's strategic growth vectors include: •Defense modernization; •Space superiority; •Health and human performance; •Sustainable technology; •High-end engineering; •Energy transition and security; and •Technology-led asset optimization Key customers includeU.S. DoD agencies such as theU.S. Army ,U.S. Navy andU.S. Air Force ,Missile Defense Agency ,National Geospatial-Intelligence Agency ,National Reconnaissance Office and other intelligence agencies;U.S. civilian agencies such as NASA,U.S. Geological Survey andNational Oceanic and Atmospheric Administration ; theU.K. MoD,London Metropolitan Police , and otherU.K. Crown Services; theRoyal Australian Air Force ,Navy and Army; other national governments; and a wide range of commercial and industrial companies. Our deployment priorities are to fund organic growth, maintain responsible leverage, maintain an attractive dividend, make strategic, accretive acquisitions and repurchase shares. As demonstrated by our acquisitions ofFrazer Nash Consultancy Limited ,VIMA Group and others in the past few years, our acquisition thesis is centered around moving upmarket, expanding capabilities and broadening customer sets across strategic growth vectors. KBR also develops and prioritizes investment in technologies that are disruptive, innovative and sustainability- and safety-focused. These technologies and engineering solutions enable clients to achieve a cleaner, greener, more energy efficient global future. 28
--------------------------------------------------------------------------------
Business Environment and Trends
Government Outlook
OnDecember 29, 2022 ,President Biden signed into law the$1.7 trillion Consolidated Appropriations Act of 2023, which included$858 billion in defense spending and$773 billion for non-defense discretionary spending which represents an increase from the fiscal 2022 budget of 10% and 6%, respectively. TheU.S. defense spending budget executes and prioritizes the 2022 National Security Strategy to confront near peer threats around the world, particularly in the Indo-Pacific region. Funding priorities will enhance theDoD's cybersecurity strategy and cyber warfare capabilities, increase the priority of military space superiority, direct innovation to meet long-range emerging threats, continue the restoration of military readiness and increase support for theU.S. European Command. The budget also includes critical assistance forUkraine and several measures to strengthen emerging technologies including cyber-science and technologies, artificial intelligence, directed energy, hypersonic research and development and biotechnologies. The non-defense discretionary spending proposal includes$25 billion , or a 6% increase from the fiscal 2022 budget, in funding for NASA to support the continuation of scientific research, exploration and space technology, as well as increased funding across all agencies to address the climate crisis. OnMarch 9, 2023 ,President Biden provided his proposed fiscal 2024 budget of$1.7 trillion , which included$886 billion in defense spending and$844 billion for non-defense discretionary spending which represents an increase from the fiscal 2023 budget of 3% and 9%, respectively. TheU.S. defense spending budget prioritizes initiatives outlined in the fiscal 2023 budget in addition to, among other things, addressing strategic competition and making significant, long-term investments in a resilient force posture in the Indo-Pacific to deter aggression, supporting our partners in the region and strengthening theU.S. and regional defense industrial base. The fiscal 2024 request also continues increased support for theU.S. European Command and investment in integrated deterrence and military credibility. The non-defense discretionary spending proposal includes$27 billion , or a 7% increase from the fiscal 2023 budget, in funding for NASA to strengthenU.S. leadership in scientific research, exploration and space technology innovation, advance robotic exploration of Mars and support efforts to establish the first long-term presence on the Moon and then on to Mars. Uncertainty continues to exist regarding the raising of the debt ceiling. The current statutory limit was reached inJanuary 2023 , requiring theTreasury Department to take extraordinary measures to continue financingU.S. government obligations while avoiding exceeding the debt ceiling. It is expected, however, theU.S. government will exhaust these measures sometime between July andSeptember 2023 . If the debt ceiling is not raised, theU.S. government may not be able to fulfill its funding obligations and there could be significant disruption to all discretionary programs and wider financial and economic repercussions. Additionally, uncertainty exists regarding whether a dividedCongress will be able to pass appropriation bills for the fiscal year 2024 which could result in government shutdowns and/or continuing resolutions. Under continuing resolutions, typically partial-year funding at amounts consistent with appropriated levels for the prior fiscal year will be available, subject to certain restrictions, but spending on new programs or initiatives are prohibited. The debt ceiling and federal budget are expected to continue to be the subject of considerable congressional debate. Although we believeDoD programs and fiscal year funding will continue to receive consensus support and would likely receive legislative priority if these scenarios come to fruition, the effect on individual programs or KBR cannot be predicted at this time. Internationally, our Government Solutions work is performed primarily for theU.K. MoD and theAustralian Department of Defence . InMarch 2023 , theU.K. government announced its intent to increase its defense budget by £11 billion over the next five years, increasing the defense budget to 2.25% of GDP by 2025. Recognizing the importance of strong defense and the role theU.K. plays across the globe, theU.K. has prioritized investment in military research and investment in key areas to advance and develop capabilities around artificial intelligence, cyber security and space superiority. The Australian government continues to invest in defense spending, with particular focus on enhancing regional security, modernizing defense capabilities, strengthening cyber defenses and promoting broader economic stability. In 2021, theU.S. ,U.K. andAustralia announced AUKUS, a security pact that will promote a free and open Indo-Pacific through a shared long-term investment to strengthen their combined capabilities and enhance their ability to deter aggression. AUKUS' first major initiative (Pillar 1) is a multi-year joint effort to provideAustralia with a conventionally armed, nuclear powered submarine capability and strengthen the capacity of the submarine workforce and industrial base. Pillar 2 will focus on enabling technologies to maintain a secure and stable trade through the region including undersea technologies, quantum technologies, advanced cyber, artificial intelligence and autonomy, hypersonic research and development, electronic warfare and innovation. Additionally, inOctober 2022 , the Australian government announced thatAustralia's defense spending for the 2022 - 2023 financial year will increase by 7.8% to AUD 48.7 billion, or 1.96% of GDP.
With defense and civil budgets driven in part by political instability, military conflicts, aging platforms and infrastructure and the need for technology advances, we expect continued opportunities to provide solutions and technologies to mission critical work aligned with our customers' and our nation's critical priorities.
29
--------------------------------------------------------------------------------Sustainable Technology Outlook
Long-range commercial market fundamentals are supported by global population growth, expanding global development and an acceleration of demand for energy transition, renewable energy sources and climate change solutions. The globe is in search of the solution to the energy trilemma, the balance between energy affordability, ensuring energy security and achieving environmental sustainability. Clients are prioritizing their efforts to solve the energy trilemma by investing in digital solutions to optimize operations, increase end-product flexibility and energy efficiency, reduce unplanned downtime and minimize environmental footprint. As the global focus on energy security intensifies and companies continue to commit to near-term carbon neutrality and longer-range net-zero carbon emissions, we expect spending to continue in areas such as decarbonization; carbon capture, utilization and sequestration; biofuels; and circular economy. Further, leading companies across the world are proactively evaluating clean energy alternatives, including hydrogen and green ammonia which complements KBR's proprietary process technologies, solutions and capabilities. We expect climate change and energy transition to continue to be areas of priority and investment as many countries, including theU.S. andCanada , look to boost their economies and invest in a cleaner future. Specifically, onAugust 16, 2022 , the President signed the Inflation Reduction Act into law which includes provisions intended to, among other things, incentivize domestic clean energy, manufacturing and production. Additionally, inMarch 2023 , the Canadian government announced its federal budget which includes billions of dollars for investment in the transition to a low-carbon economy. In response toRussia's military invasion ofUkraine , we continue to carry out efforts to wind down operations inRussia in a responsible manner. We expect that the reconfiguration of global supply and demand stemming from expanding sanctions onRussia will result in near and mid-term investments to enable energy, chemical and food production security globally. Additionally, inMarch 2023 , KBR's joint venture withZachry Group , KZJV, was issued a full notice to proceed with Phase 2 of Plaquemines LNG. KZJV, in which KBR holds a non-majority interest, performs certain design, engineering, procurement and construction-related services for a nameplate facility inPlaquemines Parish, Louisiana that will produce 20 million tonnes per annum (MTPA) of LNG.
Our Business
KBR's business is organized into two core and one non-core business segments as follows:
Core business segments • Government Solutions • Sustainable Technology Solutions Non-core business segment • Other
See additional information on our business segments in Note 2 "Business Segment Information" to our condensed consolidated financial statements.
30
--------------------------------------------------------------------------------Results of Operations
Three months ended
The information below is an analysis of our consolidated results for the three months endedMarch 31, 2023 compared to the three months endedMarch 31, 2022 . See Results of Operations by Business Segment below for additional information describing the performance of each of our reportable segments. Consolidated Results
Three Months Ended
2023 vs. 2022
Dollars in millions 2023 2022 $ %
Revenues $ 1,703 $ 1,714 $ (11) (1) %
Cost of revenues $ (1,458) $ (1,518) $ (60) (4) %
Gross profit $ 245 $ 196 $ 49 25 %
Equity in earnings (losses) of unconsolidated
affiliates $ 23 $ (118) $ 141 119 %
Selling, general and administrative expenses $ (124) $ (107) $ 17 16 %
Other $ - $ (2) $ (2) n/m
Operating income $ 144 $ (31) $ 175 n/m
Interest expense $ (26) $ (20) $ 6 30 %
Other non-operating expense $ (2) $ - $ 2 n/m
Income before provision for income taxes and
noncontrolling interests $ 116 $ (51) $ 167 n/m
Provision for income taxes $ (30) $ (19) $ 11 58 %
Net income (loss) $ 86 $ (70) $ 156 n/m
Net income attributable to noncontrolling
interests $ - $ 1 $ (1) (100) %
Net income (loss) attributable to KBR $ 86 $ (71) $ 157 n/m
n/m - not meaningful
Revenues. Revenues remained materially consistent at approximately $1.7 billion
for the three months ended March 31, 2023 and 2022. The slight decrease in
revenues for the three months ended March 31, 2023 was primarily attributable to
approximately $269 million of revenue recognized in Q1 2022 from contingency
work associated with the OAW program that was wound down and substantially
completed in early 2022. This decrease was offset by increased activity in 2022
to support exercises, training and other activities within the European Command
in our GS business and increased revenues from technology sales and engineering
and professional services in our STS business.
Gross profit. The increase in overall gross profit of $49 million , or 25%, was
primarily driven by items increasing revenues discussed above, favorable STS
licensing mix and resolutions on various legacy matters in Q1 2023. These
increases were offset by reduced volume from contingency work associated with
the OAW program.
Equity in earnings (losses) of unconsolidated affiliates. Equity in earnings
(losses) of unconsolidated affiliates increased by $141 million to $23 million
in earnings for the three months ended March 31, 2023 , compared to $118 million
in losses for the three months ended March 31, 2022 . During the three months
ended March 31, 2022 , a non-cash charge in the amount of $137 million was
recorded associated with the settlement agreement with the consortium of
subcontractors of the Combined Cycle Power Plant for the Ichthys LNG Project
that did not recur in Q1 2023. Additionally, the increase is attributed to
equity in earnings from services on an LNG project that commenced in the second
quarter of 2022.
Selling, general and administrative expenses. Selling, general and
administrative expenses in the three months ended March 31, 2023 were $17
million higher than the same period in 2022, which was primarily driven by
growth in the core business, favorable settlements and credits received in the
first quarter of 2022 that did not recur in 2023 and incremental expenses from
our International business in Government Solutions.
Interest expense. The increase in interest expense was primarily driven by
continued increases in the
31
--------------------------------------------------------------------------------
Provision for income taxes. The provision for income taxes for the three months
ended March 31, 2023 reflects a 26% tax rate as compared to a (37)% tax rate for
the three months ended March 31, 2022 . The effective tax rate of 26%, as
compared to the U.S. statutory rate of 21%, for the three months ended March 31,
2023 was primarily impacted by the rate differential on our foreign earnings.
The effective tax rate of (37)% for the three months ended March 31, 2022 was
primarily driven by the non-deductibility of losses incurred with respect to the
settlement of outstanding matters related to the Ichthys LNG project to which
KBR is a JV partner. Excluding the tax impact of this item, our tax rate would
be 25% for the three months ended March 31, 2022 . See Note 10 "Income Taxes" to
our condensed consolidated financial statements for further discussion on income
taxes.
32
--------------------------------------------------------------------------------Results of Operations by Business Segment
Three Months Ended March 31,
2023 vs. 2022
Dollars in millions 2023 2022 $ %
Revenues
Government Solutions $ 1,328 $ 1,459 $ (131) (9) %
Sustainable Technology Solutions 375 255 120 47 %
Total revenues $ 1,703 $ 1,714 $ (11) (1) %
Operating income (loss)
Government Solutions $ 102 $ 116 $ (14) (12) %
Sustainable Technology Solutions 82 (106) $ 188 n/m
Other (40) (41) $ 1 2 %
Operating income (loss) $ 144 $ (31) $ 175 n/m
Government Solutions
GS revenues decreased by $131 million , or 9%, to approximately $1.33 billion for
the three months ended March 31, 2023 , compared to approximately $1.46 billion
for the three months ended March 31, 2022 . The decrease was primarily
attributable to approximately $269 million of revenue recognized in Q1 2022 from
contingency work associated with the OAW program that was wound down and
substantially completed in early 2022. Additionally, the decrease is attributed
to the ramp down of construction work for the Aspire program. These decreases
were offset by increased activity in 2022 to support exercises, training and
other activities within the European Command.
GS operating income decreased by $14 million , or 12%, to $102 million for the
three months ended March 31, 2023 , compared to $116 million for the three months
ended March 31, 2022 . The decrease was primarily driven by items discussed
above, offset by a favorable resolution of a legacy legal matter.
Sustainable Technology Solutions
STS revenues increased by
STS operating income (loss) increased by$188 million , to$82 million in operating income for the three months endedMarch 31, 2023 , compared to$106 million in operating loss for the three months endedMarch 31, 2022 . The increase is primarily attributed to a decrease in equity in losses related to theIchthys LNG project. During the three months endedMarch 31, 2022 , a non-cash charge in the amount of$137 million was recorded for the settlement agreement with the consortium of subcontractors of theCombined Cycle Power Plant that did not recur in Q1 2023. Additionally, the increase is related to increased technology sales and engineering and professional services, increased equity in earnings from services on an LNG project, a favorable resolution on a legacy matter in Q1 2023 and a non-cash impact in Q1 2022 that did not recur in 2023 related to our continued efforts to wind down operations inRussia .
Other
Other operating loss remained materially consistent for each of three months
ended
33
--------------------------------------------------------------------------------Backlog of Unfilled Orders
Backlog generally represents the dollar amount of revenues we expect to realize in the future as a result of performing work on contracts and our pro-rata share of work to be performed by our consolidated and unconsolidated joint ventures. We generally include total expected revenues in backlog when a contract is awarded under a legally binding agreement. In many instances, arrangements included in backlog are complex, nonrepetitive and may fluctuate over the contract period due to the release of contracted work in phases by the customer. Additionally, nearly all contracts allow customers to terminate the agreement at any time for convenience. Certain contracts provide maximum dollar limits, with actual authorization to perform work under the contract agreed upon on a periodic basis with the customer. In these arrangements, only the amounts authorized are included in backlog. For projects where we act solely in a project management capacity, we only include the expected value of our services in backlog. We define backlog, as it relates toU.S. government contracts, as our estimate of the remaining future revenue from existing signed contracts over the remaining base contract performance period (including customer approved option periods) for which work scope and price have been agreed with the customer. We define funded backlog as the portion of backlog for which funding currently is appropriated, less the amount of revenue we have previously recognized. We define unfunded backlog as the total backlog less the funded backlog. Our GS backlog does not include any estimate of future potential delivery orders that might be awarded under our government-wide acquisition contracts, agency-specific indefinite delivery/indefinite quantity contracts or other multiple-award contract vehicles, nor does it include option periods that have not been exercised by the customer. Within our GS business segment, we calculate estimated backlog for long-term contracts associated with theU.K. government's PFIs based on the aggregate amount that our client would contractually be obligated to pay us over the life of the project. We update our estimates of the future work to be executed under these contracts on a quarterly basis and adjust backlog, if necessary. We have included in the table below our proportionate share of unconsolidated joint ventures' estimated backlog. As these projects are accounted for under the equity method, only our share of future earnings from these projects will be recorded in our results of operations. Our proportionate share of backlog for projects related to unconsolidated joint ventures totaled$4.6 billion atMarch 31, 2023 , and$3.9 billion atDecember 31, 2022 . As a result ofU.S. Transportation Command lifting the stop work order on the HomeSafe contract inNovember 2022 , we have booked$39 million in backlog as ofMarch 31, 2023 andDecember 31, 2022 for our transition work. Additionally, during the three months endedMarch 31, 2023 , we booked$0.8 billion for our proportionate share of KZJV's backlog and for KBR services to be provided to KZJV as a result of receiving a full notice to proceed with Phase 2 of the Plaquemines LNG project.
The following table summarizes our backlog by business segment as of
March 31, December 31,
Dollars in millions 2023 2022
Government Solutions $ 11,651 $ 11,543
Sustainable Technology Solutions 4,867 4,012
Total backlog $ 16,518 $ 15,555
We estimate that as of March 31, 2023 , 38% of our backlog will be executed
within one year. Of this amount, 73% will be recognized in revenues on our
condensed consolidated statement of operations and 27% will be recorded by our
unconsolidated joint ventures. As of March 31, 2023 , $65 million of our backlog
relates to active contracts that are in a loss position.
As of March 31, 2023 , 9% of our backlog was attributable to fixed-price
contracts, 39% was attributable to PFIs, 39% was attributable to
cost-reimbursable contracts and 13% was attributable to time-and-materials
contracts. For contracts that contain fixed-price, cost-reimbursable and
time-and-materials components, we classify the individual components as either
fixed-price, cost-reimbursable or time-and-materials according to the
composition of the contract; however, for smaller contracts, we characterize the
entire contract based on the predominant component. As of March 31, 2023 , $8.6
billion of our GS backlog was currently funded by our customers.
34
--------------------------------------------------------------------------------
As of March 31, 2023 , we had approximately $4.4 billion of priced option periods
not yet exercised by the customer for U.S. government contracts that are not
included in the backlog amounts presented above.
The difference between backlog of $16.5 billion and the remaining performance
obligations as defined by ASC 606 of $11.3 billion is primarily due to our
proportionate share of backlog related to unconsolidated joint ventures which is
not included in our remaining performance obligations. See Note 3 "Revenue" to
our condensed consolidated financial statements for discussion of the remaining
performance obligations.
Transactions with Joint Ventures
In the normal course of business, we form incorporated and unincorporated joint ventures to execute projects. In addition to participating as a joint venture partner, we often provide engineering, procurement, construction, operations or maintenance services to the joint venture as a subcontractor. Where we provide services to a joint venture that we control and therefore consolidate for financial reporting purposes, we eliminate intercompany revenues and expenses on such transactions. In situations where we account for our interest in the joint venture under the equity method of accounting, we do not eliminate any portion of our subcontractor revenues or expenses, however, we recognize profit on our subcontractor scope of work only to the extent the joint venture's scope of work to the end customer is complete. We recognize revenue over time on our services provided to joint ventures that we consolidate and our services provided to joint ventures that we record under the equity method of accounting. See Note 7 "Equity Method Investments and Variable Interest Entities" to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. The information discussed therein is incorporated by reference into this Part I, Item 2.
Legal Proceedings
Information relating to various commitments and contingencies is described in Notes 6 "Unapproved Change Orders and Claims Against Clients and Estimated Recoveries of Claims Against Suppliers and Subcontractors", 11 "Commitments and Contingencies" and 12 "U.S. Government Matters" to our condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q, and the information discussed therein is incorporated by reference into this Part I, Item 2.
Liquidity and Capital Resources
Liquidity is provided by available cash and cash equivalents, cash generated from operations, our Senior Credit Facility, (as defined below) and access to capital markets. Our operating cash flow can vary significantly from year to year and is affected by the mix, terms, timing and stage of completion of our projects. We often receive cash in advance on certain of our sustainable technology projects. On time-and-material and cost reimbursable contracts, we may utilize cash on hand or availability under our Senior Credit Facility to satisfy any periodic operating cash requirements for working capital, as we incur costs and subsequently invoice our customers. Certain STS services projects may require us to provide credit support for our performance obligations to our customers in the form of letters of credit, surety bonds or guarantees. Our ability to obtain new project awards in the future may be dependent on our ability to maintain or increase our letter of credit and surety bonding capacity, which may be further dependent on the timely release of existing letters of credit and surety bonds. As the need for credit support arises, letters of credit may be issued under the Revolver (as defined below) or with lending counterparties on a bilateral, syndicated or other basis. As discussed in Note 9 "Debt and Other Credit Facilities" of our condensed consolidated financial statements, onFebruary 6, 2023 , we entered into Amendment No. 8 under our existing Credit Agreement, dated as ofApril 25, 2018 ("Pro Rata Facilities"), consisting of a$1 billion revolving credit facility (the "Revolver"), a Term Loan A ("Term Loan A") with debt tranches denominated inU.S. dollars and British pound sterling and a Term Loan B ("Term Loan B") ("Senior Credit Facility"). Amendment No. 8 (i) replaces the LIBOR-based reference borrowing rate with a SOFR-based reference borrowing rate for theU.S. dollar tranche of Term Loan A and the Revolver and (ii) implements the Company's recent fiscal year change from a calendar year ending onDecember 31 to a 52-53 week year ending on the Friday closest toDecember 31 , effective beginning with fiscal year 2023. Term Loan A and the Revolver mature onNovember 2026 and Term Loan B matures inFebruary 2027 .
We believe that existing cash balances, internally generated cash flows,
availability under our Senior Credit Facility and other lines of credit are
sufficient to support our business operations for the next 12 months. As of
35
--------------------------------------------------------------------------------
Cash and cash equivalents totaled
March 31, December 31,
Dollars in millions 2023 2022
Domestic U.S. cash $ 40 $ 27
International cash 262 255
Joint venture and Aspire Defence project cash 114 107
Total $ 416 $ 389
Our cash balances are held in numerous accounts throughout the world to fund our
global activities, including acquisitions, joint ventures and other business
partnerships. Domestic cash relates to cash balances held by U.S. entities and
is largely used to support project activities of those businesses as well as
general corporate needs such as the payment of dividends to shareholders,
repayment of debt and potential repurchases of our outstanding common stock.
Our international cash balances may be available for general corporate purposes
but are subject to local restrictions, such as capital adequacy requirements and
maintaining sufficient cash balances to support our U.K. pension plan and other
obligations incurred in the normal course of business by those foreign entities.
Repatriations of our undistributed foreign earnings are generally free of U.S.
tax but may incur withholding and/or state taxes. We consider our future
non-U.S. cash needs as 1) our anticipated foreign working capital requirements,
including funding of our U.K. pension plan, 2) the expected growth opportunities
across all geographical markets and 3) our plans to invest in strategic growth
opportunities, which may include acquisitions, joint ventures and other business
partnerships around the world, including whether foreign earnings are
permanently reinvested. If management were to completely remove the indefinite
investment assertion on all foreign subsidiaries, the exposure to local
withholding taxes would be less than $9 million .
Joint venture cash and Aspire Defence project cash balances reflect the amounts
held by joint venture entities that we consolidate for financial reporting
purposes. These amounts are limited to those entities' activities and are not
readily available for general corporate purposes; however, portions of such
amounts may become available to us in the future should there be a distribution
of dividends to the joint venture partners. We expect that the majority of the
joint venture cash balances will be utilized for the corresponding joint venture
purposes or for paying dividends.
As of March 31, 2023 , substantially all of our excess cash was held in interest
bearing operating accounts or short-term investment accounts with the primary
objectives of preserving capital and maintaining liquidity.
© Edgar Online, source
