CARS.COM INC. The following discussion and analysis of our business, financial condition, results of operations and quantitative and qualitative disclosures should be read in conjunction with our Consolidated Financial Statements and related notes included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis also contains forward-looking statements and should be read in conjunction with the disclosures and information contained in "Note About Forward-Looking Statements" in this Quarterly Report on Form 10-Q. The financial information discussed below and included elsewhere in this Quarterly Report on Form 10-Q may not necessarily reflect what our financial condition, results of operations and cash flows may be in the future.
References in this discussion and analysis to "we," "us," "our" and similar
terms refer to
Business Overview
We are a leading automotive marketplace platform that provides a robust set of
digital solutions that connect car shoppers with sellers. We empower shoppers
with the data, resources and digital tools needed to make informed buying
decisions and seamlessly connect with automotive retailers. In a rapidly
changing market, we enable dealerships and automotive manufacturers ("OEMs"),
with innovative technical solutions and data-driven intelligence, to better
reach and influence ready-to-buy shoppers, increase inventory turn and gain
market share.
In addition to Cars.com™, our brands include Dealer Inspire®, a website and
digital solutions provider enabling dealerships to be more efficient through
connected digital experiences; FUEL™, an advertising solution providing dealers
and OEMs the benefit of leveraging targeted digital video and display marketing
to Cars.com's audience of in-market car shoppers; DealerRater®, a leading car
dealer review and reputation management technology solution; CreditIQ™, digital
financing technology and Accu-Trade™, vehicle valuation and appraisal
technology. Our portfolio of brands also includes Auto.com™, PickupTrucks.com™
and NewCars.com®.
Overview of Results
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2022 2021 2022 2021
Revenue $ 164,595 $ 156,553 $ 485,675 $ 465,378
Net (loss) income (2,941 ) 2,431 6,944 13,675
2022 Highlights and Trends
Accu-Trade Acquisition. InMarch 2022 , we acquired certain assets and assumed certain liabilities ofAccu-Trade, LLC ;Accu-Trade Canada, LLC ;Galves Market Data; andHeadstart Logistics, LLC d/b/a MADE Logistics (collectively, "Accu-Trade"), which includes real-time, VIN-specific vehicle appraisal and valuation data, instant guaranteed offer capabilities and logistics technology (the "Accu-Trade Acquisition"). Consideration for the transaction was composed of$64.8 million of cash and$5.3 million in other consideration. As part of the transaction, upon achievement of certain financial targets, we may be required to pay additional cash and stock consideration to the former owners. CreditIQ Acquisition. InNovember 2021 , we acquired all the outstanding stock ofCreditIQ, Inc. (the "CIQ Acquisition"), an automotive fintech platform that provides instant online loan screening and approvals to facilitate online car buying. Through the CIQ Acquisition, we provide dealers and consumers with access to advanced digital financing technology across the CARS platform. Using cash on hand, we paid$30.0 million at the closing excluding transaction fees and expenses. As part of the transaction, we may be required to pay additional cash consideration of up to$50.0 million based on future performance over a three-year period with a mutually agreed upon option for a fourth year. Share Repurchase Program. InFebruary 2022 , our Board of Directors authorized a three-year share repurchase program to acquire up to$200 million of the Company's common stock. We may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws and other applicable legal requirements, and subject to our blackout periods. We will fund the share repurchase program principally with cash from operations. During the nine months endedSeptember 30, 2022 , we repurchased and subsequently retired 3.5 million shares for$40.0 million at an average price paid per share of$11.47 . 18 --------------------------------------------------------------------------------
Key Operating Metrics
We regularly review a number of key metrics to evaluate our business, measure
our performance, identify trends affecting our business, formulate financial
projections and make operating and strategic decisions. The most critical of
these key metrics are as follows:
Three Months Ended Nine Months Ended
September 30, September 30,
(in thousands) 2022 2021 % Change 2022 2021 % Change
Traffic 150,449 142,418 6 % 446,949 457,460 (2 )%
Average Monthly
Unique Visitors 27,309 24,341 12 % 26,983 25,563 6 %
September 30, September 30, QoQ
2022 2021 % Change June 30, 2022 % Change
Dealer Customers 19,585 19,029 3 % 19,517 0 %
Monthly Average
Revenue Per Dealer $ 2,334 $ 2,332 0 % $ 2,326 0 %
Traffic ("Visits"). Traffic is fundamental to our business. Traffic to the CARS
network of websites and mobile apps provides value to our advertisers in terms
of audience, awareness, consideration and conversion. In addition to tracking
traffic volume and sources, we monitor activity on our properties, allowing us
to innovate and refine our consumer-facing offerings. Traffic is defined as the
number of visits to CARS desktop and mobile properties (responsive sites and
mobile apps), measured using Adobe Analytics. Traffic does not include traffic
to Dealer Inspire websites. Traffic provides an indication of our consumer
reach. Although our consumer reach does not directly result in revenue, we
believe our ability to reach in-market car shoppers is attractive to our dealer
customers and national advertisers.
The increase in traffic for the three months ended
The decline in traffic for the nine months endedSeptember 30, 2022 was primarily due to elevated traffic in the prior year period related to an increase in consumer confidence and heightened consumer demand from the federal economic stimulus program that ran during the first half of 2021, and a decrease in mobile app and SEO traffic following our technology transformation. This was partially offset by efficiencies gained and user acquisition strategy shifts in 2022. Average Monthly Unique Visitors ("UVs"). Growth in unique visitors and consumer traffic to our network of websites and mobile apps increases the number of impressions, clicks, leads and other events we can monetize to generate revenue. We define UVs in a given month as the number of distinct visitors that engage with our platform during that month. Visitors are identified when a user first visits an individual CARS property on an individual device/browser combination or installs one of our mobile apps on an individual device. If a visitor accesses more than one of our web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. UVs do not include UVs associated with Dealer Inspire hosted websites. We measure UVs using Adobe Analytics.
The growth in UVs for the three months ended
The growth in UVs for the nine months endedSeptember 30, 2022 as compared to the decline in Traffic can be attributed to changes in our Traffic mix and the continued lower vehicle inventory levels, which we believe are resulting in users purchasing cars with fewer visits. In addition, browser and data privacy policies may make it more difficult to resolve users across sessions. This growth was partially offset by a decrease in SEO and mobile app traffic. Dealer Customers. Dealer Customers represent dealerships using our products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. BeginningJune 30, 2022 , this key operating metric includes Accu-Trade; however, no prior period has been recast as it would be impracticable to do so. Dealer Customers increased 3% fromSeptember 30, 2021 , driven by sustained high retention rates, new sales to Dealer Customers, as well as the inclusion of Accu-Trade only dealers. Dealer Customers slightly increased by 68 fromJune 30, 2022 . Average Revenue Per Dealer ("ARPD"). We believe that our ability to grow ARPD is an indicator of the value proposition of our platform. We define ARPD as Dealer revenue, excluding digital advertising services, during the period divided by the monthly average 19 -------------------------------------------------------------------------------- number of Dealer Customers during the same period. Beginning with the three months endedJune 30, 2022 , Accu-Trade is included in our ARPD metric, which had an immaterial impact on ARPD; however, no prior period has been recast as it would be impracticable to do so.
For the three months ended
Factors Affecting Our Performance. Our business is impacted by changes in the larger automotive ecosystem, including inventory supply and supply-chain disruptions, which continue to be under pressure due to key material and labor shortages, and changes related to automotive advertising as well as other macroeconomic factors including inflation, rising interest rates and a potential recession. Changes in vehicle sales volumes inthe United States also influence OEMs' and dealerships' willingness to increase investments in technology solutions and automotive marketplaces likeCars.com and could impact our pricing strategies and/or revenue mix. Our long-term success will depend in part on our ability to continue to evolve our business toward a multi-faceted suite of digital solutions that complement our online marketplace offerings. We believe our core strategic strengths, including our strong brand portfolio, growing high-quality audience, and suite of specialized digital solutions for advertisers and sales and service teams will assist us as we navigate a rapidly changing automotive environment. Additionally, we are focused on equipping our dealer customers with digital solutions to enable them to compete in an environment in which an increasing number of car-buying customers are shopping online. These solutions include digital financing, vehicle appraisal, virtual showrooms and digital advertising products targeting in-market buyers. The foundation of our continued success is the value we deliver to customers, and we believe that our large audience of in-market car shoppers and innovative solutions deliver significant value to our customers. The prolonged effects of the COVID-19 pandemic continue to be unknown and depend on factors outside of our control. However, we believe our marketplace, advertising and digital solutions remain critical in helping our customers navigate a new way of shopping as a result of the pandemic. We also believe our solutions will continue to be important tools for our customers in the future and, in particular, may help mitigate potential future impacts of the pandemic.
Results of Operations
Three Months EndedSeptember 30, 2022 Compared to Three Months EndedSeptember 30, 2021 Three Months Ended September 30, (In thousands, except percentages) 2022 2021 $ Change % Change Revenue: Dealer$ 145,395 $ 139,321 $ 6,074 4 % OEM and National 14,909 15,273 (364 ) (2 )% Other 4,291 1,959 2,332 119 % Total revenue 164,595 156,553 8,042 5 % Operating expenses: Cost of revenue and operations 28,828 28,928 (100 ) 0 % Product and technology 21,425 20,132 1,293 6 % Marketing and sales 53,615 51,948 1,667 3 % General and administrative 17,694 17,919 (225 ) (1 )% Depreciation and amortization 23,134 25,552 (2,418 ) (9 )% Total operating expenses 144,696 144,479 217 0 % Operating income 19,899 12,074 7,825 65 % Nonoperating expense: Interest expense, net (8,501 ) (9,522 ) 1,021 (11 )%
Other (expense) income, net (13,387 ) 19 (13,406 ) ***%
Total nonoperating
expense, net (21,888 ) (9,503 ) (12,385 ) ***%
(Loss) income before
income taxes (1,989 ) 2,571 (4,560 ) ***%
Income tax expense 952 140 812 ***%
Net (loss) income $ (2,941 ) $ 2,431 $ (5,372 ) ***%
*** Not meaningful
Dealer revenue. Dealer revenue consists of marketplace and digital solutions sold to dealer customers, which includes Accu-Trade revenue except for the Accu-Trade license included in Other revenue. Dealer revenue is our largest revenue stream, representing 88%
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and 89% of total revenue for the three months ended September 30, 2022 and 2021,
respectively. Dealer revenue increased $6.1 million or 4% compared to the three
months ended September 30, 2021 , driven primarily by a 3% increase in Dealer
Customers from September 30, 2021 .
OEM and National revenue. OEM and National revenue consists of display
advertising and other solutions sold to OEMs, advertising agencies, automotive
dealer associations and auto adjacent businesses. OEM and National revenue
represents 9% and 10% of total revenue for the three months ended September 30,
2022 and 2021, respectively. OEM and National revenue decreased 2%, primarily
due to pullbacks in certain OEM spending associated with production delays and
shortages, both driven by supply-chain disruptions.
Other revenue. Other revenue consists of revenue related to the Accu-Trade
license agreement and vehicle listing data sold to third parties and pay-per
lead and peer-to-peer vehicle advertising. Other revenue represents 3% and 1% of
total revenue for the three months ended September 30, 2022 and 2021,
respectively. Other revenue increased $2.3 million or 119%, primarily due to the
Accu-Trade license agreement. For more information, see Note 3 (Goodwill ,
Indefinite-Lived Intangible Asset, and Business Combinations).
Cost of revenue and operations. Cost of revenue and operations expense primarily
consists of costs related to processing dealer vehicle inventory, pay-per-lead
products, product fulfillment and compensation costs for the product fulfillment
and customer service teams. Cost of revenue and operations expense represents
18% of total revenue for the three months ended September 30, 2022 and 2021.
Cost of revenue and operations expense was essentially flat.
Product and technology. The product team creates and manages consumer and
dealer-facing innovation and user experience. The technology team develops and
supports our products, websites and mobile apps. Product and technology expense
includes compensation costs, consulting costs, hardware and software
maintenance, software licenses, data center and other infrastructure costs.
Product and technology expense represents 13% of total revenue for the three
months ended September 30, 2022 and 2021. Product and technology expense
increased, primarily due to incremental costs related to Accu-Trade and CreditIQ
and higher compensation, including stock-based compensation.
Marketing and sales. Marketing and sales expense primarily consists of traffic
and lead acquisition costs (including search engine and other online marketing),
TV and digital display and video advertising and creative production, market
research, trade events, compensation costs and travel for the marketing, sales
and sales support teams, as well as bad debt expense related to the allowance
for doubtful accounts. Marketing and sales expense represents 33% of total
revenue for the three months ended September 30, 2022 and 2021. Marketing and
sales expense increased, primarily due to higher compensation, partially offset
by reduced spend related to traffic generation.
General and administrative. General and administrative expense primarily
consists of compensation costs for certain of the executive, finance, legal,
human resources, facilities and other administrative employees. In addition,
general and administrative expense includes office space rent, legal, accounting
and other professional services, transaction-related costs, severance,
transformation and other exit costs and costs related to the write-off and loss
on assets. General and administrative expense represents 11% of total revenue
for the three months ended September 30, 2022 and 2021. General and
administrative expense was essentially flat, down 1% from the prior year.
Depreciation and amortization. Depreciation and amortization expense decreased, primarily due to certain assets being fully depreciated and amortized as compared to the prior-year period, partially offset by depreciation and amortization on additional assets acquired.
Interest expense, net. Interest expense, net decreased by$1.0 million compared to the prior year period due to the maturity of the interest rate swap and a reduction in total indebtedness, partially offset by slightly higher interest rates in 2022. For information related to our debt, see Note 5 (Debt) and Note 6 (Interest Rate Swap) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements (unaudited)" of this Quarterly Report on Form 10-Q. Other (expense) income, net. Other (expense) income, net changed primarily due to the change in the fair value of contingent consideration associated with the CreditIQ and Accu-Trade acquisitions. For more information related to contingent consideration, see Note 3 (Goodwill , Indefinite-lived Intangible Asset and Business Combinations) and Note 4 (Fair Value Measurements). Income tax expense. The effective income tax rate, expressed by calculating the Income tax expense as a percentage of (Loss) income before income taxes, was (47.9)% for the three months endedSeptember 30, 2022 , and the Income tax expense was$1.0 million . The effective income tax rate was different from the statutory federal income tax rate of 21%, primarily due to the change in the valuation allowance and an aggregate of other individually insignificant items. 21 --------------------------------------------------------------------------------
Nine Months Ended
Nine Months Ended September 30,
(In thousands, except percentages) 2022 2021 $ Change % Change
Revenue:
Dealer $ 429,798 $ 409,145 $ 20,653 5 %
OEM and National 44,227 49,671 (5,444 ) (11 )%
Other 11,650 6,562 5,088 78 %
Total revenue 485,675 465,378 20,297 4 %
Operating expenses:
Cost of revenue and operations 86,084 84,978 1,106 1 %
Product and technology 65,849 56,326 9,523 17 %
Marketing and sales 165,364 156,468 8,896 6 %
General and administrative 51,465 46,800 4,665 10 %
Depreciation and amortization 70,688 76,530 (5,842 ) (8 )%
Total operating expenses 439,450 421,102 18,348 4 %
Operating income 46,225 44,276 1,949 4 %
Nonoperating expense:
Interest expense, net (26,878 ) (29,362 ) 2,484 (8 )%
Other (expense) income, net (13,233 ) 18 (13,251 ) ***
Total nonoperating expense, net (40,111 ) (29,344 ) (10,767 ) 37 %
Income before income taxes 6,114 14,932 (8,818 ) (59 )%
Income tax (benefit) expense (830 ) 1,257 (2,087 ) ***
Net income $ 6,944 $ 13,675 $ (6,731 ) (49 )%
*** Not meaningful
Dealer revenue. Dealer revenue is our largest revenue stream, representing 88%
of total revenue for the nine months ended September 30, 2022 and 2021. Dealer
revenue increased $20.7 million or 5% compared to the nine months ended
September 30, 2021 , driven by a 3% increase in Dealer Customers from September
30, 2021 .
OEM and National revenue. OEM and National revenue represents 9% and 11% of
total revenue for the nine months ended
Other revenue. Other revenue represents 3% and 1% of total revenue for the nine months endedSeptember 30, 2022 and 2021, respectively. Other revenue increased$5.1 million or 78%, primarily due to the Accu-Trade license agreement. For more information, see Note 3 (Goodwill , Indefinite-Lived Intangible Asset, and Business Combinations). Cost of revenue and operations. Cost of revenue and operations expense represents 18% of total revenue for the nine months endedSeptember 30, 2022 and 2021. Cost of revenue and operations expense increased, primarily due to higher compensation costs, partially offset by lower third-party costs associated with certain products. Product and technology. Product and technology expense represents 14% and 12% of total revenue for the nine months endedSeptember 30, 2022 and 2021, respectively. Product and technology expense increased, primarily due to higher compensation and consulting costs, including costs associated with the Accu-Trade and CreditIQ Acquisitions, as well as higher licensing and other technology costs. Marketing and sales. Marketing and sales expense represents 34% of total revenue for the nine months endedSeptember 30, 2022 and 2021. Marketing and sales expense increased, primarily due to continued investment in marketing in 2022, including a return to in-person industry events that had been curtailed due to the pandemic, as well as higher compensation costs. General and administrative. General and administrative expense represents 11% and 10% of total revenue for the nine months endedSeptember 30, 2022 and 2021, respectively. General and administrative expense increased, primarily due to professional fees and transaction-related costs related to the Accu-Trade Acquisition, as well as higher compensation costs, including stock-based compensation.
Depreciation and amortization. Depreciation and amortization expense decreased, primarily due to certain assets being fully depreciated and amortized as compared to the prior year period, partially offset by depreciation and amortization on additional assets acquired.
22
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Interest expense, net. Interest expense, net decreased by $2.5 million compared
to the prior year period due to the maturity of the interest rate swap and a
reduction in total indebtedness, partially offset by slightly higher interest
rates in 2022. For information related to our debt, see Note 5 (Debt) and Note 6
(Interest Rate Swap) to the accompanying Consolidated Financial Statements
included in Part I, Item 1, "Financial Statements" of this Quarterly Report on
Form 10-Q.
Other (expense) income, net. Other (expense) income, net changed primarily due
to the change in the fair value of contingent consideration associated with the
CreditIQ and Accu-Trade acquisitions. For more information related to contingent
consideration, see Note 3 (Goodwill , Indefinite-lived Intangible Asset and
Business Combinations) and Note 4 (Fair Value Measurements).
Income tax (benefit) expense. The effective income tax rate, expressed by
calculating the Income tax (benefit) expense as a percentage of (Loss) Income
before income taxes, was (13.6)% for the nine months ended September 30, 2022 ,
and the Income tax benefit was $0.8 million . The effective income tax rate was
lower than the statutory federal income tax rate of 21%, primarily due to the
tax benefits realized on stock-based compensation and the impact of uncertain
tax positions.
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Liquidity and Capital Resources
Overview. Our primary sources of liquidity are cash flows from operations, available cash reserves and borrowing capacity available under our credit facilities. Our positive operating cash flow, along with our Revolving Loan described below, provide adequate liquidity to meet our business needs, including those for investments, debt service, share repurchases and strategic acquisitions. However, our ability to maintain adequate liquidity for our operations in the future is dependent upon a number of factors, including our revenue, macroeconomic conditions, our ability to contain costs, including capital expenditures, and to collect accounts receivable, and various other factors, many of which are beyond our direct control. As discussed below, we are subject to certain financial and other covenants contained in our debt agreements, as amended, including by the Third Amendment to the Credit Agreement. For information related to the Credit Amendment, as amended, see Note 7 (Debt) in Part II, Item 8., "Financial Statements and Supplementary Data", of our Annual Report on Form 10-K for the year endedDecember 31, 2021 as filed with theSEC onFebruary 25, 2022 . We may also seek to raise funds through debt or equity financing in the future to fund operations, significant investments or acquisitions that are consistent with our strategy. If we need to access the capital markets, there can be no assurance that financing may be available on attractive terms, if at all. As ofSeptember 30, 2022 , Cash and cash equivalents were$31.9 million and including our undrawn Revolving Loan, our total liquidity was$226.9 million . Indebtedness. As ofSeptember 30, 2022 , the outstanding aggregate principal amount of our debt was$505.0 million , with an interest rate of 6.2%, including$70.0 million of outstanding principal under our Term Loan, with an interest rate of 5.7%,$35.0 million of outstanding borrowings on our Revolving Loan, with an interest rate of 5.1% and outstanding Senior Unsecured Notes of$400.0 million , with an interest rate of 6.375%. During the nine months endedSeptember 30, 2022 , we made$7.5 million in mandatory Term Loan payments. During the nine months endedSeptember 30, 2022 we borrowed$45.0 million on our Revolving Loan and repaid$10.0 million . As ofSeptember 30, 2022 , we had$195.0 million available to borrow under our Revolving Loan. Our borrowings are limited by our Senior Secured Leverage Ratio and Consolidated Interest Coverage Ratio, which are calculated in accordance with our Credit Agreement, and were 0.6x and 5.7x as ofSeptember 30, 2022 , respectively. Contingent Consideration. The fair value as ofSeptember 30, 2022 for the contingent consideration related to the CreditIQ and Accu-Trade acquisitions was$61.1 million . Within the next twelve months, we expect to pay$10.0 million of the potential contingent consideration amounts discussed below. As part of the Accu-Trade Acquisition, we may be required to pay additional consideration to the former owners based on achievement of certain financial targets. For the Accu-Trade contingent consideration we have the option to pay consideration in cash or stock, which may result in a variable number of shares being issued. The actual amount to be paid will be based on the acquired business' future performance to be attained over a three-year performance period. As part of the CreditIQ Acquisition, we may be required to pay up to an additional$50.0 million in cash consideration to the former owners based on two earn-out achievement objectives, including an earnings-related metric and lender market share. The actual amount to be paid will be based on the acquired business' future performance to be attained over a three-year performance period with a mutually agreed-upon option for a fourth year. For information related to the contingent consideration, see Note 3 (Goodwill , Indefinite-lived Intangible Asset and Business Combinations) and Note 4 (Fair Value Measurements).
Cash Flows. Details of our cash flows are as follows (in thousands):
Nine Months Ended September 30,
2022 2021 Change
Net cash provided by (used
in):
Operating activities $ 91,291 $ 116,226 $ (24,935 )
Investing activities (79,169 ) (17,879 ) (61,290 )
Financing activities (19,271 ) (114,559 ) 95,288
Net change in cash and cash
equivalents $ (7,149 ) $ (16,212 ) $ 9,063
Operating Activities. The decrease in cash provided by operating activities was
primarily related to changes in operating assets and liabilities, including
fluctuations in working capital during the nine months ended September 30, 2022
in addition to the receipt of a $9.1 million tax refund related to the carryback
of federal and state income tax net operating loss as a result of the CARES Act
during the nine months ended September 30, 2021 .
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--------------------------------------------------------------------------------Investing Activities. The increase in cash used in investing activities was primarily related to the Accu-Trade Acquisition in 2022, partially offset by lower capital expenditures in the current year period.
Financing Activities. During the nine months endedSeptember 30, 2022 , cash used in financing activities was primarily related to repurchases of common stock and payments on our Term Loan and Revolving Loan, partially offset by$45.0 million of proceeds from Revolving Loan borrowings related to the Accu-Trade Acquisition. During the nine months endedSeptember 30, 2021 , cash used in financing activities was primarily related to$107.5 million of debt repayments, of which$100.0 million were voluntary pre-payments. For information related to our debt and repurchases of common stock, see Note 5 (Debt) and Note 8 (Stockholders' Equity) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements (unaudited)" of this Quarterly Report on Form 10-Q.
Commitments and Contingencies. For information related to commitments and contingencies, see Note 7 (Commitments and Contingencies) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements (unaudited)" of this Quarterly Report on Form 10-Q.
Off-Balance Sheet Arrangements. We do not have any material off-balance sheet arrangements.
Critical Accounting Policies. For information related to critical accounting policies, see "Critical Accounting Policies and Estimates" in Part II, Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations", of our Annual Report on Form 10-K for the year endedDecember 31, 2021 as filed with theSEC onFebruary 25, 2022 and see Note 1 (Description of Business and Summary of Significant Accounting Policies) to the accompanying Consolidated Financial Statements included in Part I, Item 1., "Financial Statements (unaudited)" of this Quarterly Report on Form 10-Q. During the nine months endedSeptember 30, 2022 , there have been no changes to our critical accounting policies.
Recent Accounting Pronouncements. There were no significant new accounting pronouncements applicable to us in the period.
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