Essential Utilities(WTRG) - 2022 Q2 - Quarterly Report

Part I – Financial Information Item 1. Financial Statements Presents unaudited consolidated financial statements and detailed notes for Essential Utilities, Inc Consolidated Balance Sheets Metric (in thousands of dollars) | Metric (in thousands of dollars) | June 30, 2022 | December 31, 2021 | Change (%) | | :------------------------------- | :------------ | :---------------- | :--------- | | Total Assets | $15,046,164 | $14,658,278 | 2.65% | | Net property, plant and equipment | $10,592,365 | $10,251,866 | 3.32% | | Goodwill | $2,340,792 | $2,340,815 | -0.00% | | Total Liabilities and Equity | $15,046,164 | $14,658,278 | 2.65% | | Total stockholders' equity | $5,342,032 | $5,184,450 | 3.04% | | Long-term debt (net) | $6,087,736 | $5,779,504 | 5.33% | | Total current liabilities | $544,125 | $675,063 | -19.39% | - The company's total assets increased by 2.65% from December 31, 2021, to June 30, 2022, primarily due to an increase in net property, plant, and equipment[7] - Total current liabilities decreased significantly by 19.39%, mainly due to a reduction in loans payable and book overdrafts[9] Consolidated Statements of Operations and Comprehensive Income Three Months Ended June 30 (in thousands of dollars, except per share amounts) | Metric | 2022 | 2021 | Change ($) | Change (%) | | :----- | :---------- | :---------- | :--------- | :--------- | | Operating revenues | $448,756 | $397,032 | $51,724 | 13.03% | | Total operating expenses | $311,020 | $267,704 | $43,316 | 16.18% | | Operating income | $137,736 | $129,328 | $8,408 | 6.50% | | Net income | $82,291 | $80,914 | $1,377 | 1.70% | | Basic EPS | $0.31 | $0.32 | -$0.01 | -3.13% | | Diluted EPS | $0.31 | $0.32 | -$0.01 | -3.13% | Six Months Ended June 30 (in thousands of dollars, except per share amounts) | Metric | 2022 | 2021 | Change ($) | Change (%) | | :----- | :---------- | :---------- | :--------- | :--------- | | Operating revenues | $1,148,031 | $980,597 | $167,434 | 17.07% | | Total operating expenses | $782,666 | $618,917 | $163,749 | 26.46% | | Operating income | $365,365 | $361,680 | $3,685 | 1.02% | | Net income | $281,667 | $264,603 | $17,064 | 6.45% | | Basic EPS | $1.08 | $1.04 | $0.04 | 3.85% | | Diluted EPS | $1.07 | $1.04 | $0.03 | 2.88% | - For the three months ended June 30, 2022, operating revenues increased by 13.03% year-over-year, but net income per common share (basic and diluted) slightly decreased by $0.01[11] - For the six months ended June 30, 2022, operating revenues grew by 17.07%, and net income increased by 6.45%, leading to a rise in both basic and diluted EPS[12] Consolidated Statements of Capitalization Metric (in thousands of dollars) | Metric (in thousands of dollars) | June 30, 2022 | December 31, 2021 | Change ($) | Change (%) | | :------------------------------- | :------------ | :---------------- | :--------- | :--------- |\n| Total stockholders' equity | $5,342,032 | $5,184,450 | $157,582 | 3.04% |\n| Long-term debt (net) | $6,087,736 | $5,779,504 | $308,232 | 5.33% |\n| Total capitalization | $11,429,768 | $10,963,954 | $465,814 | 4.25% | - Total capitalization increased by 4.25% from December 31, 2021, to June 30, 2022, driven by increases in both stockholders' equity and long-term debt[14] - Long-term debt, excluding the current portion and net of debt issuance costs, increased by $308,232 thousand, or 5.33%[14] Consolidated Statements of Equity Six Months Ended June 30, 2022 (in thousands of dollars) | Metric | Balance at Dec 31, 2021 | Net Income | Dividends Paid | Stock Issuances/Repurchases | Other Equity Changes | Balance at Jun 30, 2022 | | :----- | :---------------------- | :--------- | :------------- | :-------------------------- | :------------------- | :---------------------- | | Total Stockholders' Equity | $5,184,450 | $281,667 | $(138,108) | $9,407 | $4,616 | $5,342,032 | Six Months Ended June 30, 2021 (in thousands of dollars) | Metric | Balance at Dec 31, 2020 | Net Income | Dividends Paid | Stock Issuances/Repurchases | Other Equity Changes | Balance at Jun 30, 2021 | | :----- | :---------------------- | :--------- | :------------- | :-------------------------- | :------------------- | :---------------------- | | Total Stockholders' Equity | $4,683,877 | $264,603 | $(123,104) | $9,062 | $3,377 | $4,836,815 | - Total stockholders' equity increased by $157,582 thousand from December 31, 2021, to June 30, 2022, primarily due to net income of $281,667 thousand, partially offset by dividends paid of $138,108 thousand[16] Consolidated Statements of Cash Flow Six Months Ended June 30 (in thousands of dollars) | Cash Flow Activity | 2022 | 2021 | Change ($) | | :----------------- | :---------- | :---------- | :--------- | | Operating activities | $416,302 | $412,868 | $3,434 | | Investing activities | $(474,013) | $(403,781) | $(70,232) | | Financing activities | $60,120 | $(5,510) | $65,630 | | Net change in cash and cash equivalents | $2,409 | $3,577 | $(1,168) | - Net cash flows from operating activities remained stable, increasing slightly by $3,434 thousand year-over-year[20] - Cash flows used in investing activities increased significantly by $70,232 thousand, primarily due to higher property, plant, and equipment additions and utility system acquisitions[20] - Net cash flows from financing activities swung from a net outflow of $5,510 thousand in 2021 to a net inflow of $60,120 thousand in 2022, driven by proceeds from long-term debt and reduced short-term debt repayments[20] Notes to Consolidated Financial Statements Note 1 – Basis of Presentation - The unaudited consolidated financial statements are prepared in accordance with GAAP for interim reporting and SEC rules, and should be read with the Company's 2021 Annual Report on Form 10-K[22] - Management believes major events like the COVID-19 pandemic and global geopolitical uncertainties did not materially impact financial estimates due to the essential nature of the business, but continues to monitor them[24] Note 2 – Revenue Recognition Three Months Ended June 30, 2022 (in thousands of dollars) | Customer Class | Water Revenues | Wastewater Revenues | Natural Gas Revenues | Other Revenues | | :------------- | :------------- | :------------------ | :------------------- | :------------- | | Residential | $149,542 | $30,653 | $95,942 | - | | Commercial | $41,025 | $6,973 | $18,853 | - | | Gas transportation & storage | - | - | $40,573 | - | | Consolidated Total | $224,181 | $41,404 | $168,341 | $14,830 | Six Months Ended June 30, 2022 (in thousands of dollars) | Customer Class | Water Revenues | Wastewater Revenues | Natural Gas Revenues | Other Revenues | | :------------- | :------------- | :------------------ | :------------------- | :------------- | | Residential | $280,830 | $57,148 | $381,048 | - | | Commercial | $76,145 | $13,038 | $75,893 | - | | Gas transportation & storage | - | - | $119,747 | - | | Consolidated Total | $424,929 | $76,779 | $614,553 | $31,770 | - Natural Gas revenues showed significant growth, with residential natural gas revenues increasing from $83,760 thousand in Q2 2021 to $95,942 thousand in Q2 2022, and from $297,953 thousand in H1 2021 to $381,048 thousand in H1 2022[26] Note 3 – Acquisitions - In March 2022, the Company acquired the Lower Makefield Township wastewater system for $53,000 thousand, serving approximately 11,000 customer connections[27] - The Company has several pending acquisitions, including the Bucks County Water and Sewer Authority's wastewater assets for an offer of $885,000 thousand, and other water/wastewater systems totaling over 25,000 customers[30][31] - The acquisition of DELCORA's wastewater system for $276,500 thousand is still pending, subject to regulatory approval and ongoing litigation with Delaware County, with closing expected in late 2022 or early 2023[34][37] Note 4 – Goodwill Goodwill by Business Segment (in thousands of dollars) | Segment | December 31, 2021 | June 30, 2022 | Change ($) | | :-------------- | :---------------- | :------------ | :--------- | | Regulated Water | $58,527 | $58,504 | $(23) | | Regulated Natural Gas | $2,277,447 | $2,277,447 | $0 | | Other | $4,841 | $4,841 | $0 | | Consolidated | $2,340,815 | $2,340,792 | $(23) | - Consolidated goodwill remained largely stable, with a minor reclassification of $23 thousand from Regulated Water goodwill to utility plant acquisition adjustment[39] Note 5 – Capitalization - The Company fully settled a forward equity sale agreement on August 9, 2021, issuing 6,700,000 shares and receiving $299,739 thousand in cash proceeds[41] - In April and May 2022, the remaining tangible equity units were settled, resulting in the issuance of 9,029,461 shares of common stock and the complete pay-off of amortizing notes[44] - On May 20, 2022, the Company issued $500,000 thousand in Senior Notes due 2052 with a 5.30% interest rate, using proceeds to repay existing credit facilities and for general corporate purposes[45] - On June 30, 2022, revolving credit agreements for Peoples Natural Gas Companies and Aqua Pennsylvania were amended to increase the facility amount (Peoples) and update termination dates to June 29, 2023[46] Note 6 – Financial Instruments - The fair value of loans payable and cash and cash equivalents approximates their carrying amounts, determined using Level 1 methods[50] Long-term Debt (in thousands of dollars) | Metric | June 30, 2022 | December 31, 2021 | | :----- | :------------ | :---------------- | | Carrying amount | $6,256,321 | $5,947,357 | | Estimated fair value | $5,545,498 | $6,482,499 | - The estimated fair value of long-term debt decreased by approximately $937 million from December 31, 2021, to June 30, 2022, while its carrying amount increased[51] Note 7 – Net Income per Common Share Average Common Shares Outstanding (in thousands) | Period | Basic (2022) | Basic (2021) | Diluted (2022) | Diluted (2021) | | :----- | :----------- | :----------- | :------------- | :------------- | | Three Months Ended June 30 | 262,099 | 254,769 | 262,558 | 255,441 | | Six Months Ended June 30 | 262,026 | 254,667 | 262,545 | 255,268 | - Average common shares outstanding for both basic and diluted computations increased year-over-year for both the three and six-month periods ended June 30, 2022, reflecting new share issuances[53] - The dilutive effect of the forward equity sale agreement was zero for 2022 periods, as it was settled in August 2021, but contributed to diluted shares in 2021[53] Note 8 – Stock-based Compensation - The Company's Amended and Restated Equity Compensation Plan authorizes 6,250,000 shares for issuance, with 1,804,222 shares still available at June 30, 2022[55] Stock-based Compensation Expense (in thousands of dollars) | Type | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Performance Share Units (PSUs) | $1,692 | $1,290 | $3,342 | $2,931 | | Restricted Stock Units (RSUs) | $727 | $761 | $1,504 | $1,365 | | Stock Options | $141 | $90 | $241 | $301 | | Restricted Stock | $13 | $12 | $25 | $106 | | Stock Awards | $165 | $175 | $357 | $350 | - PSU compensation expense increased by 31.16% for the three months and 14.02% for the six months ended June 30, 2022, compared to the prior year[56] - The weighted-average fair value of PSUs granted in H1 2022 was $42.31, and for RSUs was $45.10[57][59] Note 9 – Pension Plans and Other Postretirement Benefits Net Periodic Benefit Cost (Credit) (in thousands of dollars) | Benefit Type | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Pension Benefits | $(1,415) | $(793) | $(2,833) | $(1,352) | | Other Postretirement Benefits | $(140) | $446 | $(279) | $892 | - Net periodic pension benefit cost shifted from a credit of $(793) thousand in Q2 2021 to a larger credit of $(1,415) thousand in Q2 2022, primarily due to higher expected return on plan assets[66] - Other postretirement benefits also shifted from a cost of $446 thousand in Q2 2021 to a credit of $(140) thousand in Q2 2022[66] - Cash contributions to the Pension Plan totaled $14,564 thousand during the first six months of 2022[67] Note 10 – Rate Activity - Aqua Pennsylvania received an order in May 2022 allowing base rate increases of $69,251 thousand in annual operating revenues, with new rates effective May 19, 2022[68] - Kentucky's natural gas division received an order in January 2022 for a $5,238 thousand annual revenue increase, with an additional $260 thousand approved in June 2022[69] - Aqua North Carolina filed an application in June 2022 to increase rates by $18,064 thousand in the first year, with further increases in subsequent years[70] - Ohio's water and wastewater utility divisions are undergoing a base rate case expected to increase operating revenues by $5,483 thousand annually, with new rates anticipated in Q3 or Q4 2022[71] Note 11 – Taxes Other than Income Taxes Taxes Other than Income Taxes (in thousands of dollars) | Component | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Property | $8,239 | $9,570 | $16,253 | $17,284 | | Gross receipts, excise and franchise | $4,017 | $3,949 | $8,117 | $7,633 | | Payroll | $4,778 | $4,718 | $11,439 | $11,474 | | Regulatory assessments | $1,812 | $847 | $3,577 | $1,685 | | Pumping fees | $1,947 | $1,464 | $3,323 | $2,590 | | Other | $927 | $572 | $2,018 | $1,495 | | Total | $21,720 | $21,120 | $44,727 | $42,161 | - Total taxes other than income taxes increased by $600 thousand (2.84%) for the three months and $2,566 thousand (6.09%) for the six months ended June 30, 2022, compared to the prior year[74] - Regulatory assessments saw a significant increase, more than doubling for both the three and six-month periods[74] Note 12 – Segment Information - The Company operates in two reportable segments: Regulated Water (eight operating segments) and Regulated Natural Gas (one operating segment), plus an 'Other' category for non-regulated and corporate activities[75][76] Operating Revenues by Segment (in thousands of dollars) | Segment | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Regulated Water | $269,355 | $248,177 | $508,553 | $476,530 | | Regulated Natural Gas | $167,729 | $141,562 | $612,912 | $484,677 | | Other | $11,672 | $7,293 | $26,566 | $19,390 | | Consolidated | $448,756 | $397,032 | $1,148,031 | $980,597 | Total Assets by Segment (in thousands of dollars) | Segment | June 30, 2022 | December 31, 2021 | | :------ | :------------ | :---------------- | | Regulated Water | $8,645,314 | $8,403,586 | | Regulated Natural Gas | $6,121,964 | $5,960,602 | | Other | $278,886 | $294,090 | | Consolidated | $15,046,164 | $14,658,278 | - Regulated Natural Gas segment showed strong revenue growth, increasing by 18.5% for the three months and 26.5% for the six months ended June 30, 2022, primarily due to higher gas costs passed through to customers[77] Note 13 – Commitments and Contingencies - The Company has accrued $16,941 thousand for loss contingencies as of June 30, 2022, with an estimated $2,255 thousand probable of recovery through insurance[79] - A class action lawsuit related to a 'do not consume' advisory in Illinois is in the discovery phase; management believes the final resolution is not expected to have a material adverse effect on the Company's financial position[80][81] - The Company self-insures its employee medical benefit program, with a reserve of $2,470 thousand for unpaid claims at June 30, 2022[82] Note 14 – Income Taxes Effective Tax Rate | Period | 2022 | 2021 | | :----- | :---- | :---- | | Three Months Ended June 30 | 9.0% | 4.5% | | Six Months Ended June 30 | -3.4% | 3.1% | - The effective tax rate increased for the second quarter of 2022 (9.0% vs. 4.5%) due to decreased amortization of regulatory liabilities associated with deferred taxes[83] - The effective tax rate decreased for the first half of 2022 (-3.4% vs. 3.1%) due to increased income tax benefits from qualifying infrastructure deductions and amortization of a customer surcredit tax repair catch-up adjustment in the Regulated Natural Gas segment[83][84] Note 15 – Recent Accounting Pronouncements - The FASB issued new guidance in October 2021 on accounting for acquired revenue contracts in business combinations, effective for fiscal years beginning after December 15, 2022, which the Company is currently evaluating[86] - The Company adopted updated FASB guidance on convertible instruments and contracts in an entity's own equity on January 1, 2022, which did not have a material impact on its consolidated financial statements[87] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management's analysis of financial performance, condition, forward-looking statements, and segment results Forward-looking Statements - The report contains forward-looking statements regarding acquisitions, legal proceedings, accounting pronouncements, and management's plans, which are subject to risks and uncertainties including the COVID-19 pandemic, regulation, weather, and capital markets[91] General Information - Essential Utilities, Inc is a holding company for regulated utilities providing water, wastewater, and natural gas services to approximately five million people across ten states under the Aqua and Peoples brands[92] - The Company's strategy focuses on acquiring businesses in the U.S regulated water and wastewater utility industry, with opportunistic growth in market-based activities like utility service line protection[94] COVID-19 Pandemic - The Company continues to monitor the COVID-19 pandemic, implementing protective measures for employees and customers, and has returned office employees to a hybrid flex schedule[96] - Management is monitoring customer utility account collections, supply chain risks, and increased expenses related to workforce supplies, security, and cleaning due to the pandemic[96] Inflationary Cost Environment - During the first six months of 2022, the Company experienced inflationary cost increases in materials, labor, and other operating costs, exacerbated by supply chain pressures and global geopolitical uncertainties[97] - The price of natural gas substantially increased, leading to significant revenue and expense increases in the Regulated Natural Gas business, with these pressures expected to continue through 2022[97] - The Company is reviewing the adequacy of its approved rates in response to increasing service costs and is working with suppliers to mitigate supply chain risks[97][98] Financial Condition - The Company historically maintains a negative working capital position but expects internally generated funds, existing credit facilities, and proceeds from debt/equity issuances to provide sufficient working capital for at least the next twelve months[99] - In the first six months of 2022, the Company incurred $424,645 thousand in capital expenditures and $50,010 thousand for acquisitions, financed by $770,376 thousand in long-term debt and internally generated funds[100][103] - As of June 30, 2022, the Company had $840,117 thousand available under its $1,000,000 thousand unsecured revolving credit facility and $430,797 thousand available from short-term lines of credit totaling $435,500 thousand[104] Results of Operations Consolidated Results of Operations Consolidated Financial Highlights (in thousands of dollars) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating revenues | $448,756 | $397,032 | $1,148,031 | $980,597 | | Operations and maintenance expense | $134,981 | $127,515 | $277,562 | $252,590 | | Purchased gas | $75,143 | $44,897 | $302,855 | $177,050 | | Net income | $82,291 | $80,914 | $281,667 | $264,603 | - Consolidated operating revenues increased by 13.0% for Q2 2022 and 17.1% for H1 2022, driven by growth in all segments, especially Regulated Natural Gas[108][114] - Purchased gas expense surged by 67.4% in Q2 2022 and 71.1% in H1 2022, primarily due to a 190.7% and 103.7% increase in average gas commodity prices, respectively[109][117] - Net income increased by 1.7% in Q2 2022 and 6.45% in H1 2022, despite higher operating expenses and interest costs[107] Segment Results of Operations Regulated Water Segment Regulated Water Segment Financial Highlights (in thousands of dollars) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating revenues | $269,355 | $248,177 | $508,553 | $476,530 | | Operations and maintenance expense | $92,815 | $77,801 | $178,903 | $156,148 | | Net income | $76,342 | $78,849 | $136,885 | $142,879 | - Regulated Water segment revenues increased by 8.5% in Q2 2022 and 6.7% in H1 2022, driven by rate increases ($10,044 thousand in Q2, $15,904 thousand in H1), higher volume consumption, and customer base growth from acquisitions[125][130] - Operations and maintenance expense for the Regulated Water segment increased by 19.3% in Q2 2022 and 14.6% in H1 2022, due to acquired utility system costs, higher production costs, legal expenses, and outside services[125][129] - Net income for the Regulated Water segment decreased by 3.18% in Q2 2022 and 4.20% in H1 2022, despite revenue growth, primarily due to increased operating expenses and a higher effective tax rate[124][128][132] Regulated Natural Gas Segment Regulated Natural Gas Segment Financial Highlights (in thousands of dollars) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating revenues | $167,729 | $141,562 | $612,912 | $484,677 | | Operations and maintenance expense | $44,907 | $52,334 | $104,359 | $103,660 | | Purchased gas | $63,392 | $39,788 | $280,698 | $162,676 | | Net income | $11,478 | $1,905 | $150,964 | $121,155 | - Regulated Natural Gas segment operating revenues increased by 18.5% in Q2 2022 and 26.5% in H1 2022, primarily due to higher gas costs passed through to customers (Q2: $23,604 thousand, H1: $118,023 thousand) and increased usage from colder weather in H1[137][140] - Operations and maintenance expense decreased by 14.2% in Q2 2022 but increased by 0.7% in H1 2022, influenced by higher capitalization of general and administrative costs and changes in bad debt expense[137][140] - Net income for the Regulated Natural Gas segment significantly increased by 502.5% in Q2 2022 and 24.6% in H1 2022, benefiting from a substantial income tax benefit related to qualifying infrastructure deductions and a customer surcredit tax repair catch-up adjustment[135][139][143] Impact of Recent Accounting Pronouncements - The Company refers to Note 15 for details on the impact of recent accounting pronouncements, including new guidance on acquired revenue contracts and adopted guidance on convertible instruments[145] Item 3. Quantitative and Qualitative Disclosures About Market Risk Details market risks from interest rate and equity price changes, referring to the 2021 Form 10-K - The Company is subject to market risks from changes in interest rates and equity prices[146] - Further details on market risks are available in Item 7A of the Company's 2021 Annual Report on Form 10-K[146] Item 4. Controls and Procedures Management confirms effective disclosure controls and procedures, noting ERP system updates - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of June 30, 2022[146] - A new ERP system was implemented for the Regulated Water business segment, leading to necessary updates in internal controls over financial reporting[147] - No other material changes in internal control over financial reporting occurred during the quarter ended June 30, 2022[148] Part II – Other Information Item 1. Legal Proceedings No material legal proceedings are expected to adversely affect the Company's financial position - The Company is routinely involved in legal proceedings, but none are expected to have a material adverse effect on its financial position, results of operations, or cash flows[150] Item 1A. Risk Factors Refers to the 2021 Annual Report on Form 10-K for a comprehensive review of risk factors - Readers should refer to the Annual Report on Form 10-K for the year ended December 31, 2021, for a review of the Company's risk factors[151] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Summarizes common stock repurchases, primarily for employee stock-based compensation tax withholding Issuer Purchases of Equity Securities (Quarter Ended June 30, 2022) | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :----- | :------------------------------- | :--------------------------- | | April 1 - 30, 2022 | 47 | $51.75 | | May 1 - 31, 2022 | 66 | $49.31 | | June 1 - 30, 2022 | 192 | $47.01 | | Total | 305 | $48.24 | - The Company repurchased 305 shares of common stock during the quarter ended June 30, 2022, at an average price of $48.24 per share[153] - These repurchases were primarily from employees to cover withholding taxes upon the vesting of stock-based compensation, a feature available under the equity compensation plan[153] Item 6. Exhibits Lists filed exhibits, including indentures, credit amendments, and CEO/CFO certifications - Exhibits include Fifth and Sixth Supplemental Indentures, Second and Sixth Amendments to Credit Agreements, and certifications from the CEO and CFO[154] - Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) are also part of the exhibits[154] Signatures Contains signatures of authorized officers, certifying the report's filing on August 9, 2022 - The report was duly executed on August 9, 2022, by Christopher H Franklin, Chairman, President and Chief Executive Officer, and Daniel J Schuller, Executive Vice President and Chief Financial Officer[156]