ENVIRI CORPORATION The following discussion should be read in conjunction with the accompanying unaudited condensed consolidated financial statements as well as the audited consolidated financial statements of the Company, including the notes thereto, included in the Company's Annual Report on Form 10-K for the year endedDecember 31, 2021 which includes additional information about the Company's critical accounting policies, contractual obligations, practices and the transactions that support the financial results, and provides a more comprehensive summary of the Company's outlook, trends and strategies for 2022 and beyond. Certain amounts included in Item 2 of this Quarterly Report on Form 10-Q are rounded in millions and all percentages are calculated based on actual amounts. As a result, minor differences may exist due to rounding. Forward-Looking Statements The nature of the Company's business, together with the number of countries in which it operates, subject it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. In accordance with the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, the Company provides the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the results contemplated by forward-looking statements, including the expectations and assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things, statements about management's confidence in and strategies for performance; expectations for new and existing products, technologies and opportunities and expectations regarding growth, sales, cash flows, and earnings. Forward-looking statements can be identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," "likely," "estimate," "outlook," "plan" or other comparable terms. Factors that could cause actual results to differ, perhaps materially, from those implied by forward-looking statements include, but are not limited to: (1) changes in the worldwide business environment in which the Company operates, including changes in general economic conditions or changes due to COVID-19 and governmental and market reactions to COVID-19; (2) changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (3) changes in the performance of equity and bond markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; (4) changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; (5) market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; (6) the Company's inability or failure to protect its intellectual property rights from infringement in one or more of the many countries in which the Company operates; (7) failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (8) unforeseen business disruptions in one or more of the many countries in which the Company operates due to political instability, civil disobedience, armed hostilities, public health issues or other calamities; (9) disruptions associated with labor disputes and increased operating costs associated with union organization; (10) the seasonal nature of the Company's business; (11) the Company's ability to successfully enter into new contracts and complete new acquisitions or strategic ventures in the time-frame contemplated, or at all; (12) the Company's ability to negotiate, complete, and integrate strategic transactions; (13) failure to complete a process for the divestiture of the Rail division, as announced onNovember 2, 2021 on satisfactory terms, or at all; (14) potential severe volatility in the capital or commodity markets; (15) failure to retain key management and employees; (16) the outcome of any disputes with customers, contractors and subcontractors; (17) the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged, have inadequate liquidity or whose business is significantly impacted by COVID-19) to maintain their credit availability; (18) implementation of environmental remediation matters; (19) risk and uncertainty associated with intangible assets; (20) the risk that the Company may be unable to implement fully and successfully the expected incremental actions at the Harsco Clean Earth Segment due to market conditions or otherwise and may fail to deliver the expected resulting benefits; and (21) other risk factors listed from time to time in the Company'sSEC reports. A further discussion of these, along with other potential risk factors, can be found in Part II, Item 1A, "Risk Factors," below, as well as Part I, Item 1A, "Risk Factors," of the Company's Annual Report on Form 10-K for the year endedDecember 31, 2021 . The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty to update forward-looking statements except as may be required by law. 33 -------------------------------------------------------------------------------- Table of Contents Executive Overview The Company is a market-leading, global provider of environmental solutions for industrial, retail and medical waste streams. The Company's operations consist of two reportable segments: Harsco Environmental and Harsco Clean Earth. The Harsco Environmental Segment operates primarily under long-term contracts, providing critical environmental services and material processing to the global steel and metals industries, including zero waste solutions for manufacturing byproducts within the metals industry. The Harsco Clean Earth Segment provides waste management services including transportation, specialty waste processing, recycling and beneficial reuse solutions for hazardous waste and soil and dredged materials. The Company has locations in approximately 30 countries, including theU.S. The Company was incorporated in 1956. The Company maintains a positive long-term outlook across all businesses supported by favorable underlying growth characteristics in its businesses and investments by the Company to further supplement growth. The Company's view for the remainder of 2022 and beyond is supported by the below factors, which should be considered in the context of other risks, trends and strategies in the Company's Annual Report on Form 10-K for the year endedDecember 31, 2021 . •Harsco Environmental's 2022 results are expected to be below prior-year performance primarily due to the impacts of inflation, foreign exchange translation, exited contracts, lower service and ecoproducts volumes largely attributable to the energy-crisis inEurope and certain items recognized in the prior year such as the recovery ofBrazil non-income tax expense and asset sale gains not repeating, partially offset by higher environmental services demand at certain sites. The global steel market is currently experiencing a period of volatility due to the Russian-Ukraine conflict and the resulting energy crisis inEurope , as well as a change to the economic conditions due to rising interest rates which is expected to impact Harsco Environmental's performance in the coming quarters. To mitigate the impact of the pressures, the Company is taking action through lowering overall spending and capital expenditures to support its financial results and cash flows. Over the longer-term, the Company expects that the Harsco Environmental Segment's growth will be driven by economic growth that supports higher global steel consumption as well as investments and innovation that support the environmental solutions needs of customers. •Harsco Clean Earth results in 2022 are anticipated to be below prior-year levels due to unprecedented inflation in certain operating costs, including transportation, containers and disposal, and challenges related to labor availability. These impacts will be partially offset by commercial initiatives and cost-reduction actions. Clean Earth has implemented a number of actions that have improved profitability in the third quarter of 2022 and are expected to support financial results for the remainder of the year. These actions include price increases and additional cost and efficiency initiatives focused on mitigating the impact of these inflationary costs. Long-term, the Company expects this segment to benefit from positive underlying market trends, supported by increased environmental regulation, further growth opportunities and its attractive asset position, as well as from the less cyclical and recurring nature of this business. Results of Operations Segment Results Three Months Ended Nine Months Ended September 30 September 30 (In millions, except percentages) 2022 2021 2022 2021 Revenues: Harsco Environmental$ 264.7 $ 269.9 $ 804.4 $ 800.4 Harsco Clean Earth 222.2 200.5 616.4 585.9 Total Revenues$ 486.9 $ 470.4 $ 1,420.8 $ 1,386.3 Operating Income (Loss): Harsco Environmental$ 22.1 $ 27.6 $ 63.9 $ 83.8 Harsco Clean Earth 17.3 9.9 (95.7) 20.5 Corporate (9.3) (10.6) (27.4) (31.9) Total Operating Income$ 30.1 $ 26.9 $ (59.2) $ 72.4 Operating Margins: Harsco Environmental 8.4 % 10.2 % 7.9 % 10.5 % Harsco Clean Earth 7.8 % 4.9 % (15.5) % 3.5 % Consolidated Operating Margin 6.2 % 5.7 % (4.2) % 5.2 % 34
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Harsco Environmental Segment:
September 30, 2022
Nine Months
Significant Effects on Revenues (In millions) Three Months Ended Ended
Revenues - 2021 $ 269.9 $ 800.4 Net effects of price/volume changes, primarily attributable to volume changes
19.3 65.1
Impact of foreign currency translation (24.1) (50.9)
Net impact of new and lost contracts 0.1 (8.7)
Other (0.5) (1.5)
Revenues - 2022 $ 264.7 $ 804.4 The following factors contributed to the changes in operating income during the
three and nine months ended
Factors Positively Affecting Operating Income: •Operating income was positively affected by increased revenue under environmental services contracts due, in part, to higher overall service levels at certain sites for the three and nine months endedSeptember 30, 2022 . Factors Negatively Impacting Operating Income: •Impact of cost increases relating to raw materials, labor, maintenance, and freight due to inflation, including the impact of increased fuel costs on existing contracts of$5.3 million and$14.3 million for the three and nine months endedSeptember 30, 2022 , respectively. •Lower asset sale gains of$1.2 million and$7.0 million during the three and nine months endedSeptember 30, 2022 , respectively, as compared to the three and nine months endedSeptember 30, 2021 . •Foreign currency translation reduced operating income by$2.8 million and$5.7 million during the three and nine months endedSeptember 30, 2022 , respectively. •Lower recovery ofBrazil non-income tax expense of$2.4 million during the nine months endedSeptember 30, 2022 , as compared to the nine months endedSeptember 30, 2021 . Harsco Clean Earth Segment: September 30, 2022 Nine Months Significant Effects on Revenues (In millions) Three Months Ended Ended Revenues-2021$ 200.5 $ 585.9 Net effects of price/volume changes 21.8 30.8 Other (0.1) (0.3) Revenues - 2022$ 222.2 $ 616.4
The following factors contributed to the changes in operating income (loss)
during the three and nine months ended
Factors Positively Affecting Operating Income: •Favorable changes in pricing and cost reductions, offset by the impact of cost inflation on transportation, disposal, container and fuel costs, in the hazardous waste business of$8.7 million during the three months endedSeptember 30, 2022 . •Lower selling, general and administrative expense ("SG&A") of$2.2 million and$4.3 million during the three and nine months endedSeptember 30, 2022 , respectively, due principally to lower incentive compensation expense and professional fees, when compared to the same periods in 2021. 35 -------------------------------------------------------------------------------- Table of Contents Factors Negatively Impacting Operating Income: •Goodwill impairment charge of$104.6 million recorded during the nine months endedSeptember 30, 2022 . •The impact of cost inflation on transportation, disposal, container and fuel costs, in addition to lower volume, net of favorable changes due to price increases and cost reductions, decreased operating income by$7.3 million in the hazardous waste business for the nine months endedSeptember 30, 2022 . •The impact of cost inflation on transportation, disposal and labor costs in the soil and dredged material business decreased operating income by$2.4 million and$3.7 million during the three and nine months endedSeptember 30, 2022 , respectively. Consolidated Results September 30 Three Months Ended Nine Months Ended (In millions, except per share amounts and percentages) 2022 2021 2022 2021 Total revenues
392.8 375.3 1,173.0 1,108.2
Selling, general and administrative expenses 64.1 70.6 201.2 213.0
Research and development expenses 0.2 0.3 0.5 0.8
Goodwill impairment charge - - 104.6 -
Other (income) expenses, net (0.4) (2.8) 0.5 (8.0)
Operating income (loss) from continuing operations 30.1 26.9 (59.1) 72.3
Interest income 1.0 0.5 2.3 1.7
Interest expense (19.8) (15.7) (51.5) (47.6)
Facility fees and debt-related income (expense) (2.5) (0.2) (0.9) (5.5)
Defined benefit pension income 2.1 3.9 6.8 11.8
Income (loss) from continuing operations before income taxes and equity income
10.9 15.4 (102.5) 32.6
Income tax benefit (expense) from continuing operations (9.4) (7.8) (7.5) (14.7) Equity income (loss) of unconsolidated entities, net (0.1) (0.3) (0.4) (0.5) Income (loss) from continuing operations 1.4 7.3 (110.4) 17.4 Income (loss) from discontinued businesses 2.0 1.3 (35.2) 12.9 Income tax benefit (expense) related to discontinued operations (0.5) 1.2 5.3 (3.8) Income (loss) from discontinued operations, net of tax 1.5 2.5 (29.9) 9.1 Net income (loss) 2.9 9.8 (140.3) 26.5 Total other comprehensive income (loss) (25.6) (9.0) (42.7) 10.1 Total comprehensive income (loss) (22.7) 0.8 (183.0) 36.6
Diluted earnings (loss) per common share from continuing operations
attributable to
85.8 % 50.7 % (7.3) % 45.1 %
Comparative Analysis of Consolidated Results
Revenues
Revenues for the third quarter of 2022 increased$16.5 million , or 3.5%, from the third quarter of 2021. Revenues for the nine months endedSeptember 30, 2022 increased$34.4 million , or 2.5%, from the six months endedSeptember 30, 2021 . Foreign currency translation decreased revenues by$24.1 million and$50.9 million for the third quarter and nine months endedSeptember 30, 2022 , respectively, compared with the same period in the prior year. Refer to the discussion of segment results above for information pertaining to factors positively affecting and negatively impacting revenues. 36 -------------------------------------------------------------------------------- Table of Contents Cost of Services and Products Sold Cost of services and products sold for the third quarter of 2022 increased$17.5 million , or 4.7%, from the third quarter of 2021. Costs of services and products sold for the nine months endedSeptember 30, 2022 increased$64.8 million , or 5.9%, from the nine months endedSeptember 30, 2021 . The changes in cost of services and products sold were attributable to the following significant items: September 30, 2022 Nine Months (In millions) Three Months Ended Ended Change in costs due to changes in revenues volume$ 13.3 $ 45.7
Changes in costs due to change in prices, including materials, labor, fuel, transportation and maintenance
23.1 54.7
Impact of foreign currency translation (20.2) (43.2)
Other 1.3 7.6
Total change in cost of services and products sold - 2022 vs.
2021 $ 17.5 $ 64.8
Selling, General and Administrative Expenses
SG&A for the third quarter of 2022 decreased $6.5 million , or 9.2%, from the
third quarter of 2021. SG&A for the nine months ended September 30, 2022
decreased $11.8 million , or 5.5%, from the nine months ended September 30, 2021 .
The decreases include a $6.1 million reduction in compensation expense for the
both three and nine months ended September 30, 2022 , principally for incentive
compensation. In addition, the nine months ended September 30, 2022 included a
$5.1 million decrease in professional fees, principally in the Company's Clean
Earth and Corporate segments.
Goodwill Impairment Charge
The Company recorded a goodwill impairment charge of $104.6 million in the
Harsco Clean Earth Segment during the nine months ended September 30, 2022 . See
Note 8, Goodwill and Other Intangible Assets, in Part I, Item 1, Financial
Statements for further discussion regarding the goodwill impairment charge.
Other (Income) Expenses, Net
The major components of this Condensed Consolidated Statements of Operations
caption are as follows:
Three Months Ended Nine Months Ended
September 30 September 30
(In thousands) 2022 2021 2022 2021
Employee termination benefit costs
Other costs to exit activities 239 (27) 1,299 611 Impaired asset write-downs 4 41 359 203 Net gains (1,077) (1,575) (2,981) (8,622) Other (929) (1,209) 131 (1,287) Other (income) expenses, net$ (351) $ (2,835) $ 515 $ (7,993) Interest Expense Interest expense during the third quarter of 2022 increased by$4.0 million , compared to the third quarter of 2021. Interest expense during the nine months endedSeptember 30, 2022 increased by$3.9 million , compared with the nine months endedSeptember 30, 2021 . The increase during the three and nine months endedSeptember 30, 2022 primarily relates to higher weighted average interest rates, in addition to higher borrowings, related to the amended Senior Secured Credit Facilities. Facility Fees and Debt-Related Income (Expense) During the three and nine months endedSeptember 30, 2022 , the Company recognized expense of$2.5 million and$0.9 million , respectively, which included fees related to amending its Senior Secured Credit Facilities and fees related to the Company's Account Receivable Securitization Facility. A$2.3 million gain on the repurchase of$25.0 million of Senior Notes recognized during the nine months endedSeptember 30, 2022 partially offset these expenses. See Note 9, Debt and Credit Agreements, in Part I, Item 1, Financial Statements.
During the three and nine months ended
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Defined Benefit Pension Income
Defined benefit pension income for the third quarter of 2022 was $2.1 million ,
compared with defined benefit pension income of $3.9 million during the third
quarter of 2021. Defined benefit pension income for the nine months ended
September 30, 2022 was $6.8 million , compared with defined benefit pension
income of $11.8 million for the nine months ended September 30, 2021 . The
decrease is primarily the result of a lower assumed rate of return on plan
assets at December 31, 2021 .
Income Tax Benefit (Expense)
Income tax expense from continuing operations for the three and nine months
ended September 30, 2022 was $9.4 million and $7.5 million , respectively,
compared with $7.8 million and $14.7 million for the three and nine months ended
September 30, 2021 , respectively. Income tax expense from continuing operations
for the three months ended September 30, 2022 compared with the three months
ended September 30, 2021 increased primarily due to disallowed interest expense
in U.S. due to lower taxable income, offset by lower operating income as a
result of cost increases due to inflation. Income tax expense from continuing
operations for the nine months ended September 30, 2022 compared with the nine
months ended September 30, 2021 decreased primarily from lower operating income
as a result of cost increases due to inflation and labor shortages, and the tax
benefit on a portion of the Harsco Clean Earth Segment goodwill impairment.
Income (Loss) from Continuing Operations
Income (loss) from continuing operations was $1.4 million and $(110.4) million
for the three and nine months ended September 30, 2022 , respectively, compared
to income from continuing operations of $7.3 million and $17.4 million for the
three and nine months ended September 30, 2021 , respectively. The primary
drivers for these increases are noted above.
Income (Loss) from Discontinued Operations
The operating results of the former Harsco Rail Segment and costs directly
attributable to the sale of the business, have been reflected as discontinued
operations in the Company's Condensed Consolidated Statement of Operations for
all periods presented. In addition, this caption includes costs directly
attributable to retained contingent liabilities of other previously disposed
businesses. The decrease in income during the nine months ended September 30,
2022 was related primarily to the recognition of additional forward estimated
loss provisions of $35.9 million for certain contracts in the Rail business, as
well lower business performance due to reduced revenue for railway track
maintenance equipment, when compared to the nine months ended September 30,
2021 . It is possible that the Company's overall estimate of liquidated damages,
penalties and costs to complete these contracts may increase, which would result
in an additional estimated forward loss provision at such time. See Note 3,
Dispositions, in Part I, Item 1, Financial Statements.
Total Other Comprehensive Income (Loss)
Total other comprehensive loss was $25.6 million and $42.7 million in the three
and nine months ended September 30, 2022 , respectively, compared with total
other comprehensive income of $9.0 million and $10.1 million in the three and
nine months ended of September 30, 2021 , respectively. The primary driver of
these decreases is the strengthening of the U.S. dollar against certain
currencies inclusive of the impact of foreign currency translation of cumulative
unrecognized actuarial losses on the Company's pension obligations, reflective
of the strengthening of the U.S dollar during the nine months ended September
30, 2022 .
Liquidity and Capital Resources
Cash Flow Summary
The Company currently expects to have sufficient financial liquidity and
borrowing capacity to support the strategies within each of its businesses and
its current operating and debt service needs. The Company currently expects
operational and business needs to be met by cash provided by operations
supplemented with borrowings from time to time, principally under the Senior
Secured Credit Facilities. The Company supplements the cash provided by
operations with borrowings from time to time due to historical patterns of
seasonal cash flow and the funding of various projects. The Company regularly
assesses capital needs in the context of operational trends and strategic
initiatives.
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The Company's cash flows from operating, investing and financing activities, as
reflected on the Condensed Consolidated Statements of Cash Flows, are summarized
in the following table:
Nine Months Ended
September 30
(In millions) 2022 2021
Net cash provided (used) by:
Operating activities $ 131.2 $ 46.8
Investing activities (73.7) (88.8)
Financing activities (50.8) 44.2Effect of exchange rate changes on cash and cash equivalents, including restricted cash
(8.8) (1.8)
Net change in cash and cash equivalents, including restricted cash
$ 0.4 Net cash provided by operating activities - Net cash provided by operating activities in the first nine months of 2022 was$131.2 million , an increase in cash flows of$84.4 million from the first nine months of 2021. The primary drivers of this increase is due to the sale of$145.0 million of its accounts receivable through its AR Facility with PNC, partially offset by lower cash net income. Net cash used by investing activities - Net cash used by investing activities in the first nine months of 2022 was$73.7 million , an increase in cash flows of$15.1 million from the cash used in the first nine months of 2021. The increase is primarily due to decreased capital expenditure purchases and higher net proceeds received from the settlement of foreign currency forward exchange contracts, partially offset by a decrease in the proceeds from sales of assets in the Harsco Environmental Segment and payments made for settlements of interest rate swaps. Net cash (used) provided by financing activities - Net cash used by financing activities in the first nine months of 2022 was$50.8 million , a decrease of$95.0 million from the first nine months of 2021. The decrease was primarily due to lower net cash borrowings of$98.9 million in the first nine months of 2022, resulting from the use of the AR Facility proceeds to reduce long-term debt. Effect of exchange rate changes on cash and cash equivalents, including restricted cash - The decrease is due to the impact of the significant strengthening of theU.S. dollar against certain currencies during the first nine months of 2022 on the global cash balances held by the Company in these currencies, including balances held in the Company's multicurrency cash pool.
Sources and Uses of Cash
The Company's principal sources of liquidity are cash provided by operations on an annual basis and borrowings under the Senior Secured Credit Facilities, augmented by cash proceeds from asset sales. In addition, the Company has other bank credit facilities available throughout the world. The Company expects to continue to utilize all of these sources to meet future cash requirements for operations and growth initiatives. AR Facility The Company maintains a trade receivables securitization facility to accelerate cash flows from trade accounts receivable. Under the AR Facility, the Company and its designated subsidiaries continuously sell their trade receivables as they are originated to the wholly-owned bankruptcy-remote SPE. The SPE transfers ownership and control of qualifying receivables to PNC up to a maximum purchase commitment of$150.0 million . During the nine months endedSeptember 30, 2022 , the Company received proceeds of$145.0 million related to the facility.
Summary of Senior Secured Credit Facilities and Notes:
December 31 (In millions) 2022 2021 By type: New Term Loan$ 493.8 $ 497.5 Revolving Credit Facility 353.0 362.0 5.75% Senior Notes 475.0 500.0 Total$ 1,321.8 $ 1,359.5 By classification: Current $ 5.0$ 5.0 Long-term 1,316.8 1,354.5 Total$ 1,321.8 $ 1,359.5 39
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September 30, 2022
Outstanding Outstanding Available
(In millions) Facility Limit Balance Letters of Credit Credit
Revolving credit facility (a U.S.-based $ 700.0 $ 353.0 $ 32.2 $ 314.8
program)
Debt Covenants
The Senior Secured Credit Facilities contain a consolidated net debt to
Consolidated Adjusted EBITDA ratio covenant, which is not to exceed 5.50x for
the quarter ending September 30, 2022 and through and including the quarter
ended December 31, 2023 and then decreasing quarterly until reaching 4.00x on
December 31, 2024 . The Company's required coverage of consolidated interest
charges is set at a minimum of 2.75x. The total net leverage ratio covenant
applicable to the third quarter of 2024 and earlier is subject to a 0.50x
decrease upon divestiture of the former Harsco Rail segment. At September 30,
2022 the Company was in compliance with these covenants, as the total net debt
to Consolidated Adjusted EBITDA ratio (as defined in the Credit Agreement) was
5.03x and total interest coverage ratio was 3.67x. Based on balances and
covenants in effect at September 30, 2022 the Company could increase net debt by
$120.3 million and remain in compliance with these debt covenants.
Alternatively, Consolidated Adjusted EBITDA could decrease by $21.9 million , and
the Company would remain in compliance with these covenants. The Company
believes it will continue to maintain compliance with these covenants based on
its current outlook. However, the Company's estimates of compliance with these
covenants could change in the future with a continued deterioration in economic
conditions or an inability to successfully execute its plans to realize
increased pricing and to implement cost reduction initiatives that substantially
mitigate the impacts of inflation and other factors adversely impacting its
realized operating margins.
Cash Management
The Company has various cash management systems throughout the world that
centralize cash in various bank accounts where it is economically justifiable
and legally permissible to do so. These centralized cash balances are then
redeployed to other operations to reduce short-term borrowings and to finance
working capital needs or capital expenditures. Due to the transitory nature of
cash balances, they are normally invested in bank deposits that can be withdrawn
at will or in very liquid short-term bank time deposits and government
obligations. The Company's policy is to use the largest banks in the various
countries in which the Company operates. The Company monitors the
creditworthiness of banks and, when appropriate, will adjust banking operations
to reduce or eliminate exposure to less creditworthy banks.
At September 30, 2022 , the Company's consolidated cash and cash equivalents
included $78.5 million held by non-U.S. subsidiaries and approximately 17% of
the Company's consolidated cash and cash equivalents had regulatory restrictions
that would preclude the transfer of funds with and among subsidiaries. Non-U.S.
subsidiaries also held $16.4 million of cash and cash equivalents in
consolidated strategic ventures. The strategic venture agreements may require
strategic venture partner approval to transfer funds with and among
subsidiaries. While the Company's remaining non-U.S. cash and cash equivalents
can be transferred with and among subsidiaries, the majority of these non-U.S.
cash balances will be used to support the ongoing working capital needs and
continued growth of the Company's non-U.S. operations.
Recently Adopted and Recently Issued Accounting Standards
Information on recently adopted and recently issued accounting standards is included in Note 2, Recently Adopted and Recently Issued Accounting Standards, in Part I, Item 1, Financial Statements.
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