ARGAN, INC. The following discussion summarizes the financial position of
Cautionary Statement Regarding Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. We have made statements in this Item 2 and elsewhere in this Quarterly Report on Form 10-Q that may constitute "forward-looking statements." The words "believe," "expect," "anticipate," "plan," "intend," "foresee," "should," "would," "could," or other similar expressions are intended to identify forward-looking statements. Our forward-looking statements, including those relating to the potential effects of the COVID-19 pandemic on our business, financial position and results of operations, are based on our current expectations and beliefs concerning future developments and their potential effects on us.
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There can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for existing operations and do not include the potential impact of any future acquisitions.
Our forward-looking statements, by their nature, involve significant risks and uncertainties (some of which are beyond our control) and assumptions. They are subject to change based upon various factors including, but not limited to, the risks and uncertainties described in this Quarterly Report on Form 10-Q and our Annual Report. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove to be incorrect, actual results may vary in material respects from those projected in the forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Business Description
Argan is a holding company that conducts operations through its wholly-owned
subsidiaries, GPS, APC, SMC and TRC. Through GPS and APC, we provide a full
range of engineering, procurement, construction, commissioning, operations
management, maintenance, development, technical and consulting services to the
power generation market, including the renewable energy sector, for a wide range
of customers, including independent power project owners, public utilities,
equipment suppliers and global energy plant construction firms. GPS and APC
represent our power industry services reportable segment. Through TRC, the
industrial fabrication and field services reportable segment provides on-site
services that support maintenance turnarounds, shutdowns and emergency
mobilizations for industrial plants primarily located in the southeastern region
of the US and that are based on its expertise in producing, delivering and
installing fabricated steel components such as piping systems and pressure
vessels. Through SMC Infrastructure Solutions, the telecommunications
infrastructure services segment provides project management, construction,
installation and maintenance services to commercial, local government and
federal government customers primarily in the mid-
We intend to make additional opportunistic acquisitions and/or investments by identifying companies with significant potential for profitable growth and realizable synergies with one or more of our existing businesses. However, we may have more than one industrial focus depending on the opportunity. We expect that significant acquired companies will be maintained in separate subsidiaries that will be operated in a manner that best provides cash flows for the Company and value for our stockholders.
Overview
Operating Results
Consolidated revenues for the three months ended
The revenues of the power industry services segment decreased by
Consolidated gross profit for the three-month period ended
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Selling, general and administrative expenses for the three months ended
Due primarily to the increase in consolidated pre-tax book income to
For the three months ended
Consolidated revenues for the nine-month period ended
Consolidated gross profit for the nine months ended
Selling, general and administrative expenses were
Due primarily to the consolidated pre-tax book income reported for the nine
months ended
For the nine months ended
The primary drivers of our strong financial performance for the three and nine
months ended
We believe that all of our businesses have been adversely impacted, to some
degree, by difficulties presented by the COVID-19 pandemic, especially last year
when the outbreak commenced. For example, the results for APC were hurt by the
slow resumption of postponed Irish works projects and the suspension and restart
of construction activities on a certain major project. The challenges of
managing the continuing activities of the
We believe that all of our operating companies have managed the challenges presented by this ongoing pandemic with relative success so far. A significant amount of effort has been spent by senior and project management to ensure the safety of our employees during the COVID-19 pandemic while we continued to satisfy our customer obligations. While our pro-
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active efforts varied depending on the particular job or office location, and
other factors including the severity of the outbreak, we implemented a number of
different safety measures, including COVID-19 testing onsite at a major job
site, remote work, staggered shifts in various offices, contract tracing and
quarantines. Meanwhile, our commitment to the maintenance of our operations and
support teams, and the dedication to performance that our employees maintained
during the crisis, positioned us well to satisfy the performance requirements of
our customers as general business conditions improved during the nine months
ended
Engineering, Procurement and Construction Service Contracts
While the positive financial results for the three and nine months ended
At
Typically, we include the total value of EPC services and other major construction contracts in project backlog when we receive a corresponding notice to proceed from the project owner. However, we may include the value of an EPC services contract prior to the receipt of a notice to proceed if we believe that it is probable that the project will commence within a reasonable timeframe, among other factors. Projects that are awarded to us may remain included in our backlog for extended periods of time as customers experience project delays. However, cancellations or reductions may occur that would reduce project backlog and that could adversely affect our expected future revenues.
A meaningful amount of the project backlog amount at
Despite our commitment to the construction of state-of-the-art, natural
gas-fired power plants as important elements of our country's
electricity-generation mix in the future, we have been directing certain
business development efforts to winning projects for the erection of
utility-scale wind farms and solar fields and for the construction of
hydrogen-based and other renewable energy projects. We have successfully
completed these types of projects in the past and we renewed efforts to obtain
new work in the renewable power sector that will complement our natural
gas-fired EPC services projects going forward. During Fiscal 2021, GPS began
exclusive negotiations with the owners of several significant renewable projects
in anticipation of beginning the corresponding EPC services contract activities
during the fiscal year ending
Our efforts led to our announcement in
The business development efforts conducted by our APC subsidiary have resulted
in an increase in the project backlog of this business from
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As discussed at previous reporting dates, GPS has been awarded certain EPC services contracts where the commencement of the projects has been delayed.
In
On
As announced in Fiscal 2019, GPS entered into an EPC services contract to
construct the
In
We have maintained that the delays in new business awards to GPS and the project
construction starts of certain previously awarded projects relate to a variety
of factors, especially in the northeastern and mid-
The current year announcement by the PJM of a new capacity auction schedule may
remove some amount of uncertainty for project developers in forecasting future
streams of revenues. In fact, the results of the first capacity auction
conducted by PJM in over 3 years were announced on
Other headwinds for future gas-fired power plant developments remain including an increase in the amount of power generating capacity provided by renewable energy assets, improvements and decreasing prices in renewable energy storage solutions including battery resources, increased environmental activism and the results of the 2020 presidential election in the US.
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Protests against fossil-fuel related energy projects continue to garner media
attention and stir public skepticism about new projects resulting in delays due
to onsite protest demonstrations, indecision by local officials and lawsuits. In
the
Perhaps the most significant uncertainty relates to the policies of
Market Outlook
The overall growth of our power business has been based substantially on the
number of combined cycle gas-fired power plants built by us, as many coal-fired
plants have been shut down. In 2010, coal-fired power plants accounted for about
45% of total electricity generation. By 2020, coal accounted for less than 20%
of total electricity generation. On the other hand, natural-gas fired power
plants provided approximately 39% of the electricity generated by utility-scale
power plants in the US in 2020, representing an increase of 64% from the amount
of electrical power generated by natural gas-fired power plants in 2010, which
provided approximately 24% of net electricity generation for 2010. In the
reference case of its Annual Energy Outlook 2021, the
However, the share of electricity generation provided by natural gas is particularly reactive in the short term to changing natural gas prices. The EIA has explained that natural gas prices have risen recently primarily because of growth in liquified natural gas exports while the production of natural gas has not kept the same pace. The increased natural gas prices in the US prompted certain firms controlling electricity generation facilities to switch fuel sources from gas to coal. The EIA reports that coal-fired electrical power generation increased by nearly 27% in the US during the first eight months of calendar year 2021 compared with the same period in 2020 and accounted for 23% of total generation during the period compared with 19% for the same period in 2020. Natural gas-fired power generation declined by 5% in the US during the first eight months of calendar 2021 and accounted for 38% of total utility-scale net electricity generation during the first eight months of 2021; down from a 41% share during the same period in calendar 2020.
Depleted supplies of natural gas may have dangerous consequences. The
Average natural gas spot prices for all of calendar 2021 are expected to remain high for the remainder of calendar 2021, then generally decline through 2022. Nonetheless, a long-term rise in natural gas prices and the resulting reduction in the demand for natural gas-fired electricity generation, could have adverse effects on the ability of independent power producers to obtain construction and permanent financing for new natural gas-fired power plants.
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The pace of the ten-year increase in the preference for natural gas as an electricity generating fuel source was energized by environmental activism and restrictive regulations targeting coal-fired power plants. Now, the environmentalist opposition against coal-fired power generation has expanded meaningfully and effectively to target all fossil fuel energy projects, including power plants and pipelines, and has evolved into powerful support for renewable energy sources.
The share of electricity generation in the US provided by utility-scale wind and solar photovoltaic facilities continues to rise meaningfully. Together, such power facilities provided approximately 8.8% and 10.6% of the total amount of electricity generated by utility-scale power facilities in calendar 2019 and calendar 2020, respectively. In EIA's 2021 reference case, net electricity generation from all renewable power sources is expected to increase by more than 175%, representing over 42% of such generation, by 2050. Impetus for this growth is provided by public concerns about climate change and favorable economic factors.
Environmental activism has resulted in the passage of laws and the establishment of regulations that discourage new fossil-fuel burning power plants and provide income tax advantages that promote the growth of wind and solar power. Declines in the amount of renewable power plant component and power storage costs and an increase in the scale of energy storage capacity (i.e., battery farms) have also occurred. Should the pace of development for renewable energy facilities, including wind and solar power plants, accelerate at faster rates than projected, the number of future natural gas-fired construction project opportunities may fall.
Nonetheless, we believe that relatively low natural gas prices will persist over the long-term. Together with the lower operating costs of natural gas-fired power plants, the higher energy generating efficiencies of modern gas turbines, and the requirements for grid resiliency should sustain the demand for modern combined cycle and simple cycle gas-fired power plants in the future. Natural gas is relatively clean burning, cost-effective and reliable. We believe that its benefits as a source of power are compelling, especially as a complement to the growing deployment of wind and solar powered energy sources. We continue to believe that the future long-term prospects for natural gas-fired power plant construction remain generally favorable as natural gas continues to be the primary source for power generation in our country. New gas-fired power plants incorporate major advances in gas-fired turbine technologies that have provided increased power plant efficiencies while providing the quick starting capabilities and the reliability that are necessary to balance the inherent intermittencies of wind and solar power plants.
It has been reported that renewables currently provide approximately 36% of
electricity generation in
However, in both states, the significant amount of renewable power capacity
failed to rise to the occasion. A diversity lesson from both power crises may be
that fossil-fuel electricity generation sources remain critical elements of the
power generation mix in order to assure grid reliability and the avoidance of
power outages. With hopes of preventing future rolling blackouts in
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Solar and wind energy plant developers continue to confront the problems caused
by grid congestion, often unsuccessfully. Many of these projects have been
canceled because renewable plants need to be sited where the resources are
optimal, often in remote locations where the transmission systems are not
robust. The costs associated with the necessary grid upgrades may be
prohibitive. US offshore wind projects progress inconsistently, facing
challenges in the areas of environmental and fishery impacts, grid connection
and capability and federal permitting processes. Further, projects are
confronted by shipping regulations in the US that may limit the ability of
developers to replicate successful European construction and installation
models. Proponents of clean energy also face political challenges. Recently,
voters in the state of
Major advances in the safe combination of horizontal drilling techniques and hydraulic fracturing led to the boom in natural gas supplies which have been available generally at consistently low prices. The abundant availability of cheap, less carbon-intense and higher efficiency natural gas in the US should continue to be a significant factor in the economic assessment of future power generation capacity additions although the pace of new opportunities emerging may be restrained and the starts of awarded EPC projects may be delayed.
We believe that it is also important to note that the plans for certain natural gas-fired power plant projects include the adoption of integrated green hydrogen solution packages. While the plants will initially burn natural gas alone, it is planned by the respective project owners that the plants will eventually burn a mixture of natural gas and green hydrogen, thereby establishing power-generation flexibility for these plants.
We believe this is a winning combination that provides inexpensive and efficient power, enhances grid reliability and addresses the clean-air concerns of environmentalists. The building of state-of-the-art power plants with flex-fuel capability replaces coal-fired power plants in the short term with relatively clean gas-fired electricity generation. Further, such additions to the power generation fleet provide the potential for the plants to burn 100% green hydrogen gas, which would provide both base load power and long duration backup power, when the sun is not shining and the wind is not blowing, for extended periods of time and without certain harmful air emissions.
The foregoing discussion of our Market Outlook does focus on the state of the
domestic power market as the EPC services business of GPS provides the
predominant amount of our revenues. However, we cannot ignore the possibilities
that overseas power markets may provide important new power construction
opportunities for us in the future. The management of APC has growing enthusiasm
for opportunities in the electricity generation markets across
The Irish government recently issued a policy statement on the security of the
electricity supply in
Further, the Irish government has recognized that the successful development of
data centers in the country is a key aspect in promoting
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Accordingly, guidelines have been published recently with the intent to protect
both electricity consumers and the security of supply while continuing to allow
data centers to connect to the electricity system. Assessment criteria for
applications of data centers to obtain grid connections include, among other
items, the ability of data center applicants to bring onsite dispatchable power
generation (and/or storage) equivalent to or greater than their demand in order
to support the security of supply. It is expected that any dispatchable on-site
generation that uses fossil fuel sources developed by data center operators will
use natural gas as the fuel source; again, natural gas is considered to be a
transitional fuel in
APC is actively pursuing new business opportunities in both the renewable and
support sectors with its existing and new clients. The governments of both
countries have already made funds available to develop and support specific
projects with notable announcements in the north east region of the
We are committed to the rational pursuit of new construction projects, including those with overseas locations and unique deployments of power-generation turbines, and the future growth of our revenues. This may result in our decision to make investments in the development and/or ownership of new projects. Because we believe in the strength of our balance sheet, we are willing to consider certain opportunities that include reasonable and manageable risks in order to assure the award of the related engineering, procurement, construction or equipment installation services contracts to us. The competitive landscape for our core EPC services business related to natural gas-fired power plants has changed significantly over the last five years. While the market remains dynamic, we are moving into an era where there may be fewer competitors for new gas-fired power plant EPC services project opportunities. Several major competitors have exited the market for a variety of reasons or have been acquired. Others have announced intentions to avoid entering into fixed-price contracts. Nonetheless, the competition for new utility-scale gas-fired power plant construction opportunities is fierce and still includes multiple global firms.
We believe that the Company has a reputation as an accomplished, dependable and cost-effective provider of EPC and other large project construction contracting services. With the proven ability to deliver completed power facilities, particularly combined cycle, natural gas-fired power plants, we are focused on expanding our position in the power markets where we expect investments to be made based on forecasts of electricity demand covering decades into the future. We believe that our expectations are valid and that our plans for the future continue to be based on reasonable assumptions.
Comparison of the Results of Operations for the Three Months Ended
We reported net income attributable to our stockholders of
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The following schedule compares our operating results for the three months ended
Three Months Ended October 31,
2021 2020 $ Change % Change
REVENUES
Power industry services $ 99,560 $ 109,712 $ (10,152) (9.3) %Industrial fabrication and field services 21,402 15,730 5,672 36.1 Telecommunications infrastructure services 3,489 1,889 1,600 84.7 Revenues
124,451 127,331 (2,880) (2.3)
COST OF REVENUES
Power industry services 76,517 91,263 (14,746) (16.2)
Industrial fabrication and field services 18,703 14,218 4,485 31.5 Telecommunications infrastructure services 3,096 1,507 1,589 105.4 Cost of revenues
98,316 106,988 (8,672) (8.1)
GROSS PROFIT 26,135 20,343 5,792 28.5
Selling, general and administrative expenses 11,590 9,398 2,192 23.3
INCOME FROM OPERATIONS 14,545 10,945 3,600 32.9
Other income, net 1,117 175 942 538.3
INCOME BEFORE INCOME TAXES 15,662 11,120 4,542 40.8
Income tax expense (3,269) (1,666) (1,603) (96.2)
NET INCOME $ 12,393 $ 9,454 $ 2,939 31.1 %
Revenues
Power Industry Services
The revenues of the power industry services segment, representing the businesses
of GPS and APC, decreased by 9.3%, or
The primary drivers for the revenues of this segment for the three months ended
Industrial Fabrication and Field Services
The revenues of our industrial fabrication and field services segment
(representing the business of TRC) increased by
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Telecommunications Infrastructure Services
The revenue results of this business segment (representing the business of SMC)
were
Cost of Revenues
With the decrease in consolidated revenues for the three months ended
For the three month period ended
Our consolidated gross profit reported for the three-month period ended
Selling, General and Administrative Expenses
These costs were
Other Income, Net
We reported other income, net, in the amount of
Income Taxes
We reported income tax expense for the three months ended
For the three months ended
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Comparison of the Results of Operations for the Nine Months Ended
We reported net income attributable to our stockholders of
The following schedule compares our operating results for the nine months ended
Nine Months Ended October 31,
2021 2020 $ Change % Change
REVENUES
Power industry services $ 295,736 $ 227,363 $ 68,373 30.1 %
Industrial fabrication and field services 78,213 42,163 36,050 85.5
Telecommunications infrastructure services 9,851 5,445 4,406 80.9
Revenues 383,800 274,971 108,829 39.6
COST OF REVENUES
Power industry services 233,682 192,583 41,099 21.3
Industrial fabrication and field services 64,519 38,096 26,423 69.4
Telecommunications infrastructure services 8,098 4,310 3,788 87.9
Cost of revenues 306,299 234,989 71,310 30.3
GROSS PROFIT 77,501 39,982 37,519 93.8
Selling, general and administrative expenses 31,813 28,827 2,986 10.4
INCOME FROM OPERATIONS 45,688 11,155 34,533 309.6
Other income, net 1,569 1,714 (145) (8.5)
INCOME BEFORE INCOME TAXES 47,257 12,869 34,388 267.2
Income tax (expense) benefit (11,228) 1,391 (12,619) NM
NET INCOME $ 36,029 $ 14,260 $ 21,769 152.7 %
NM - Not meaningful.
Revenues
Power Industry Services
The revenues of the power industry services segment increased by 30.1%, or
The primary drivers for the strong performance by this reportable segment for
the nine months ended
Industrial Fabrication and Field Services
The revenues of our industrial fabrication and field services segment provided
20.4% of consolidated revenues for the nine-month period ended
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Telecommunications Infrastructure Services
The revenues of this business segment were
Cost of Revenues
With the increase in consolidated revenues for the nine-month period ended
For the nine-month period ended
For the nine months ended
Selling, General and Administrative Expenses
These costs were
Other Income, Net
For the nine months ended
Typically, the amounts reported on this line include primarily income earned on
funds maintained in money market accounts and interest income earned on CDs.
Adverse economic reactions to the uncertainties of the COVID-19 pandemic
commenced during the middle of last year's first quarter ended
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Income Taxes
We reported income tax expense for the nine-month period ended
For the nine-month period ended
Liquidity and Capital Resources as of
At
The net amount of cash provided by operating activities for the nine months
ended
Another source of cash for the nine months ended
The net amount of cash provided by operating activities for the nine months
ended
associated with the early phases of the
As discussed above, our income tax accounting for the nine months ended
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Primary sources of cash for the nine months ended
At
The original term of our Amended and Restated Replacement Credit Agreement with
the Bank was scheduled to expire on
We have pledged the majority of our assets to secure the financing arrangements.
The Bank's consent is not required for acquisitions, divestitures, cash
dividends or significant investments as long as certain conditions are met. The
Credit Agreement, as amended, requires that we comply with certain financial
covenants at our fiscal year-end and at each fiscal quarter-end, and includes
other terms, covenants and events of default that are customary for a credit
facility of its size and nature, including a requirement to achieve positive
adjusted earnings before interest, taxes, depreciation and amortization, as
defined, over each rolling twelve-month measurement period. At
In the normal course of business and for certain major projects, we may be required to obtain surety or performance bonding, to provide parent company guarantees, or to cause the issuance of letters of credit (or some combination thereof) in order to provide performance assurances to clients on behalf of one of our contractor subsidiaries.
If our services under a guaranteed project would not be completed or would be determined to have resulted in a material defect or other material deficiency, then we could be responsible for monetary damages or other legal remedies. As is typically required by any surety bond, we would be obligated to reimburse the issuer of any surety bond issued on behalf of a subsidiary for any cash payments made thereunder. The commitments under performance bonds generally end concurrently with the expiration of the related contractual obligation. Not all of our projects require bonding.
As of
We have also provided a financial guarantee on behalf of GPS to an original
equipment manufacturer in the amount of
When sufficient information about claims related to our performance on projects
would be available and monetary damages or other costs or losses would be
determined to be probable, we would record such losses. As our subsidiaries are
wholly-owned, any actual liability related to contract performance is ordinarily
reflected in the financial statement account balances determined pursuant to the
Company's accounting for contracts with customers. Any amounts that we may be
required to pay in excess of the estimated costs to complete contracts in
progress as of
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As noted above, returns on money market instruments and certificates of deposit
are currently minimal due to market conditions. With the desire to increase the
amount of return on its available cash, the Company invested approximately
We believe that cash on hand, our cash equivalents, cash that will be provided from the maturities of short-term investments and cash generated from our future operations, with or without funds available under our Credit Agreement, will be adequate to meet our general business needs in the foreseeable future. In general, we maintain significant liquid capital in our balance sheet to ensure the maintenance of our bonding capacity and to provide parent company performance guarantees for EPC and other construction projects.
However, any significant future acquisition, investment or other unplanned cost or cash requirement, may require us to raise additional funds through the issuance of debt and/or equity securities. There can be no assurance that such financing will be available on terms acceptable to us, or at all.
Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA")
We believe that EBITDA is a meaningful presentation that enables us to assess and compare our operating cash flow performance on a consistent basis by removing from our operating results the impacts of our capital structure, the effects of the accounting methods used to compute depreciation and amortization and the effects of operating in different income tax jurisdictions. Further, we believe that EBITDA is widely used by investors and analysts as a measure of performance.
The table following immediately below presents the determinations of EBITDA for the three and nine months endedOctober 31, 2021 and 2020, respectively (amounts in thousands). Three Months Ended October 31, 2021 2020 Net income, as reported$ 12,393 $ 9,454 Income tax expense 3,269 1,666 Depreciation 819 940 Amortization of purchased intangible assets 227 226 EBITDA 16,708 12,286 EBITDA of non-controlling interests - -
EBITDA attributable to the stockholders of
Nine Months Ended
October 31,
2021 2020
Net income, as reported $ 36,029 $ 14,260
Income tax expense (benefit) 11,228 (1,391)
Depreciation 2,560 2,798
Amortization of purchased intangible assets 680 677
EBITDA 50,497 16,344
EBITDA of non-controlling interests - (40)
EBITDA attributable to the stockholders of
However, as EBITDA is not a measure of performance calculated in accordance with US GAAP, we do not believe that this measure should be considered in isolation from, or as a substitute for, the results of our operations presented in accordance with US GAAP that are included in our condensed consolidated financial statements. In addition, our EBITDA does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs.
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As we believe that our net cash flow provided by operations is the most directly
comparable performance measure determined in accordance with US GAAP, the table
below reconciles the amounts of EBITDA for the applicable periods to the
corresponding amounts of net cash flows provided by operating activities that
are presented in our condensed consolidated statements of cash flows for the
nine months ended
Nine Months Ended
October 31,
2021 2020
EBITDA $ 50,497 $ 16,344
Current income tax (expense) benefit (10,845) 9,757
Stock compensation expense 2,521 2,199
Other non-cash items 3,407 1,911
(Increase) decrease in accounts receivable (7,084) 6,585
Decrease (increase) in other assets 2,070 (15,976)
(Decrease) increase in accounts payable and accrued expenses (19,966) 27,725 Change in contracts in progress, net
21,099 94,015
Net cash provided by operating activities $ 41,699 $ 142,560 Critical Accounting Policies
Critical accounting policies are those related to the areas where we have made what we consider to be particularly subjective or complex judgments in arriving at estimates and where these estimates can significantly impact our financial results under different assumptions and conditions. These estimates, judgments, and assumptions affect the reported amounts of assets, liabilities and equity, the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets, liabilities and equity that are not readily apparent from other sources. Actual results and outcomes could differ from these estimates and assumptions.
We consider the accounting policies related to revenue recognition on long-term
construction contracts; income tax reporting; the accounting for business
combinations; the subsequent valuation of goodwill, other indefinite-lived
assets and long-lived assets; the valuation of employee common stock-based
awards; and the financial reporting associated with any significant claims or
legal matters to be most critical to the understanding of our financial position
and results of operations, as well as the accounting and reporting for special
purpose entities including joint ventures and variable interest entities. An
expanded discussion of our critical accounting policies is included in Item 7 of
Part II of our Annual Report. During the nine months ended
Recently Issued Accounting Pronouncements
In
There are no other recently issued accounting pronouncements that have not yet been adopted that we consider material to our consolidated financial statements.
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