QUANTA SERVICES INC

Previous wording

Our first quarter 2024 results reflect increased demand for our services, as consolidated revenue and operating income increased as compared to the first quarter of 2023, primarily due to increased revenues and operating income for our Renewable Energy Infrastructure Solutions (Renewable Energy) segment.

Current wording

Our second quarter 2024 results reflect increased demand for our services, as consolidated revenue and operating income increased as compared to the second quarter of 2023, primarily due to increased revenues and operating income for our Renewable Energy Infrastructure Solutions (Renewable Energy) segment.

Previous wording

With respect to our Underground Utility and Infrastructure Solutions (Underground and Infrastructure) segment, during the first quarter of 2024 we continued to experience strong demand for our services focused on utility spending, in particular our gas distribution services to natural gas utilities that are implementing modernization programs, and our downstream industrial services, as customers continued to move forward with certain maintenance and capital spending that was previously deferred. Additionally, although revenues associated with large pipeline projects in Canada increased in 2022 and 2023, as compared to prior years, we anticipate that revenues associated with these projects will continue to fluctuate.

Current wording

With respect to our Underground Utility and Infrastructure Solutions (Underground and Infrastructure) segment, during the second quarter of 2024 we continued to experience strong demand for our services focused on utility spending, in particular our gas distribution services to natural gas utilities that are implementing modernization programs, and our downstream industrial services, as customers continued to move forward with certain maintenance and capital spending that was previously deferred. Additionally, although revenues associated with large pipeline projects in Canada increased in 2022 and 2023, as compared to prior years, we anticipate that revenues associated with these projects will continue to fluctuate.

Previous wording

During the three months ended March 31, 2024, increased revenues and operating income contributed to $238.0 million of net cash provided by operating activities, a 520% increase compared to the three months ended March 31, 2023, which allowed us to execute our business plan, including the strategic acquisition of certain businesses, for which we utilized $384.1 million of cash, net of cash acquired, and the payment of $13.7 million in dividends associated with our common stock. Additionally, as of March 31, 2024, available commitments under our senior credit facility, combined with our cash and cash equivalents, totaled $2.58 billion.

Current wording

During the six months ended June 30, 2024, increased revenues and operating income contributed to $629.3 million of net cash provided by operating activities, a 279% increase compared to the six months ended June 30, 2023, which allowed us to execute our business plan, including the strategic acquisition of certain businesses, for which we utilized $450.8 million of cash, net of cash acquired, and the payment of $27.0 million in dividends associated with our common stock. Additionally, as of June 30, 2024, available commitments under our senior credit facility, combined with our cash and cash equivalents, totaled $2.77 billion.

Previous wording

We expect the strong demand for our services will continue. Our remaining performance obligations and backlog were $14.88 billion and $29.90 billion as of March 31, 2024, representing an increase of 7.1%, and a decrease of 0.7% relative to December 31, 2023. For a reconciliation of backlog to remaining performance obligations, the most comparable financial measure prepared in conformity with generally accepted accounting principles in the United States (GAAP), see Non-GAAP Financial Measures below.

Current wording

We expect the strong demand for our services will continue. Our remaining performance obligations and backlog were $14.37 billion and $31.31 billion as of June 30, 2024, representing increases of 3.4% and 4.0% relative to December 31, 2023. For a reconciliation of backlog to remaining performance obligations, the most comparable financial measure prepared in conformity with generally accepted accounting principles in the United States (GAAP), see Non-GAAP Financial Measures below.

Previous wording

The percentage change is not meaningful.

Current wording

The change is not meaningful.

Previous wording

Revenues. Revenues increased due to a $575.9 million increase in revenues from our Renewable Energy segment and a $36.2 million increase in revenues from our Underground and Infrastructure segment, offset by a $9.1 million decrease in revenues from our Electric Power segment. See Segment Results below for additional information and discussion related to segment revenues.

Current wording

Revenues. Revenues increased due to a $645.0 million increase in revenues from our Renewable Energy segment and a $37.2 million increase in revenues from our Electric Power segment, partially offset by a $136.5 million decrease in revenues from our Underground and Infrastructure segment. See Segment Results below for additional information and discussion related to segment revenues.

Previous wording

Amortization of intangible assets. The increase was primarily related to incremental amortization expense associated with recent acquisitions.

Current wording

Amortization of intangible assets. The increase was related to incremental amortization expense associated with recent acquisitions.

Previous wording

Interest and other financing expenses. The decrease primarily resulted from an approximate 20% reduction in average variable rate debt outstanding as compared to the three months ended March 31, 2023, partially offset by an approximate 80 basis point increase in interest rates for our outstanding variable rate debt as compared to the three months ended March 31, 2023.

Current wording

Interest and other financing expenses. The decrease primarily resulted from a reduction in average variable rate debt outstanding as compared to the three months ended June 30, 2023.

Previous wording

Comprehensive income. See Statements of Comprehensive Income in Item 1. Financial Statementsof Part I of this Quarterly Report. Comprehensive income decreased by $2.7 million in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023, primarily due to a $31.0 million decrease related to foreign currency translation adjustments, which was partially offset by a $29.1 million increase in net income. The predominant functional currencies for our operations outside the U.S. are Canadian and Australian dollars. Foreign currency translation loss for the three months ended March 31, 2024 primarily resulted from the strengthening of the U.S. dollar against the Canadian and Australian dollars.

Current wording

Comprehensive income. See Statements of Comprehensive Income in Item 1. Financial Statementsof Part I of this Quarterly Report. Comprehensive income decreased by $7.7 million in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 due to a $33.0 million decrease related to foreign currency translation adjustments, which was partially offset by a $25.3 million increase in net income. The predominant functional currencies for our operations outside the U.S. are Canadian and Australian dollars. Foreign currency translation losses for the three months ended June 30, 2024 primarily resulted from the strengthening of the U.S. dollar against the Canadian dollar.

Previous wording

Selling, general and administrative expenses. The increase was primarily attributable to a $19.0 million increase related to recently acquired businesses and a loss of $10.7 million on the disposal of a non-core business. Partially offsetting these increases was a $10.3 million decrease in acquisition and integration costs.

Current wording

Selling, general and administrative expenses. The increase was primarily attributable to a $37.9 million increase related to recently acquired businesses; a $12.6 million increase in travel and related expenses to support business growth; and an $11.2 million loss on the disposal of a non-core business.

Previous wording

Operating income. Operating income was positively impacted by a $39.2 million increase in operating income for our Renewable Energy segment and a $12.9 million increase in operating income for our Electric Power segment, partially offset by a $14.7 million decrease in operating income for our Underground and Infrastructure segment and a $7.9 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and our corporate and non-allocated costs are discussed in Segment Results below.

Current wording

Operating income. Operating income was positively impacted by a $91.4 million increase in operating income for our Renewable Energy segment and a $32.7 million increase in operating income for our Electric Power segment, partially offset by a $40.3 million decrease in operating income for our Underground and Infrastructure segment and a $26.4 million increase in corporate and non-allocated costs, which includes amortization expense. Results for each of our business segments and corporate and non-allocated costs are discussed in Segment Results below.

Previous wording

Other income, net. The increase primarily resulted from a $12.2 million gain on the sale of an investment in a non-integral unconsolidated affiliate, of which $4.9 million was attributable to a non-controlling interest (as described below).

Current wording

Other income (expense), net. The increase was primarily attributable to a gain of $12.6 million resulting from the sale of an investment in a non-integral unconsolidated affiliate, $5.0 million of which was attributable to a non-controlling interest, as further described in Note 6 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Previous wording

Provision for (benefit from) income taxes. The effective tax rates for the three months ended March 31, 2024 and 2023 were a provision of 14.3% and a benefit of 3.7%. The effective tax rate for the three months ended March 31, 2024 was impacted by the recognition of a $21.6 million tax benefit resulting from non-cash stock-based compensation awards vesting at higher fair market value than their grant date fair value, as compared to the recognition of a $32.0 million tax benefit for the three months ended March 31, 2023.

Current wording

Provision for income taxes. The effective tax rates for the six months ended June 30, 2024 and 2023 were 23.2% and 20.0%. The tax rate for the six months ended June 30, 2024 was favorably impacted by the recognition of a $22.4 million benefit that resulted from equity incentive awards vesting at a higher fair market value than their grant date fair market value, as compared to the recognition of $32.4 million associated with this tax benefit for the six months ended June 30, 2023.

Previous wording

Net income attributable to non-controlling interests. The increase in net income attributable to non-controlling interests is primarily related to the $4.9 million gain on the sale of the investment in a non-integral equity unconsolidated affiliate recorded during the three months ended March 31, 2024, as further described in Note 6 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Current wording

Net income attributable to non-controlling interests. The increase in net income attributable to non-controlling interests is primarily related to the $5.0 million gain on the sale of the investment in a non-integral equity unconsolidated affiliate recorded during the six months ended June 30, 2024, as described above.

Previous wording

Revenues. The decrease in revenues for the three months ended March 31, 2024 was primarily due to softness in the distribution market, partially offset by approximately $55 million in revenues attributable to acquired businesses.

Current wording

Revenues. The increase in revenues for the three months ended June 30, 2024 was primarily due to approximately $65 million in revenues attributable to acquired businesses, partially offset by the timing of work and a shift in resources to meet demand in the Renewable Energy segment.

Previous wording

Operating Income. The increase in operating income and operating margin for the three months ended March 31, 2024 was primarily due to the favorable impact of margins related to telecommunication projects and the overall mix of revenues, partially offset by decreased utilization of resources in Canada.

Current wording

Operating Income. The increase in operating income and operating margin for the three months ended June 30, 2024 was primarily due to the increase in revenues and a change in the overall mix of revenues.

Previous wording

Revenues. The increase in revenues for the three months ended March 31, 2024 was primarily due to approximately $60 million in revenues attributable to an acquired business, as well as increased revenues associated with large pipeline projects in the United States, which were partially offset by lower revenues from large pipeline projects in Canada.

Current wording

Revenues. The decrease in revenues for the three months ended June 30, 2024 was primarily due to lower revenues from large pipeline projects in Canada, which was partially offset by increased revenues associated with large pipeline projects in the United States and approximately $55 million in revenues attributable to an acquired business.

Previous wording

Operating Income. The increase in operating income and operating margin was partly due to the increase in revenues during the three months ended March 31, 2024. Additionally, operating income and operating margin during the three months ended March 31, 2023 were negatively impacted by access delays, logistical challenges and other issues outside of our control that increased costs associated with a large renewable energy project in Canada. Operating margin for the three months ended March 31, 2024 was negatively impacted by decreased operating income margins on various solar projects in the United States that were the result of decreased productivity.

Current wording

Operating Income. The increase in operating income and operating margin was primarily due to the increase in revenues during the six months ended June 30, 2024. Additionally, operating income and operating margin during the six months ended June 30, 2023 were negatively impacted by delays, logistical challenges and other issues outside of our control that increased costs associated with a large renewable energy project in Canada. Operating margin for the six months ended June 30, 2024 was negatively impacted by decreased operating income margins on various solar projects in the United States that were the result of decreased productivity.

Previous wording

Operating Income. The decrease in operating income and operating margin for the three months ended March 31, 2024 was primarily due to a loss of $10.7 million related to the disposition of a non-core business and decreased revenues in Canada, which contributed to lower levels of fixed cost absorption.

Current wording

Operating Income. The decrease in operating income and operating margin for the six months ended June 30, 2024 was primarily due to decreased revenues in Canada, which contributed to lower levels of fixed cost absorption, and an $11.2 million loss recorded during the six months ended June 30, 2024 related to the disposition of a non-core business.

Previous wording

The increase in corporate and non-allocated costs during the three months ended March 31, 2024 was primarily due to an aggregate increase of $13.1 million in costs primarily related to compensation expense, which was primarily attributable to non-cash stock compensation expense and salaries in support of business growth. Also contributing to the increase in expense was a $5.1 million increase in amortization of intangible assets. These increases were partially offset by a $10.3 million decrease in acquisition and integration costs.

Current wording

The increase in corporate and non-allocated costs during the six months ended June 30, 2024 was primarily due to a $14.3 million increase in intangible asset amortization, as well as an aggregate increase of $12.1 million primarily related to compensation expense, which was attributable to non-cash stock compensation expense and salaries in support of business growth.

Previous wording

(a) The amount for the three months ended March 31, 2024 is a loss of $10.7 million on the disposition of a non-core business, partially offset by a gain of $7.3 million as a result of the sale of a non-integral equity method investment.

Current wording

(1) The amount for the six months ended June 30, 2024 is a loss of $11.2 million on the disposition of a non-core business, partially offset by a gain of $7.5 million as a result of the sale of a non-integral equity method investment.

Previous wording

As of March 31, 2024 and December 31, 2023, MSAs accounted for 42% and 45% of our estimated 12-month backlog and 52% and 55% of our total backlog. Generally, our customers are not contractually committed to specific volumes of services under our MSAs, and most of our contracts can be terminated on short notice even if we are not in default. We determine the estimated backlog for these MSAs using recurring historical trends, factoring in seasonal demand and projected customer needs based upon ongoing communications. In addition, many of our MSAs are subject to renewal, and these potential renewals are considered in determining estimated backlog. As a result, estimates for remaining performance obligations and backlog are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, regulatory requirements, natural disasters, emergencies and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected.

Current wording

As of June 30, 2024 and December 31, 2023, MSAs accounted for 41% and 45% of our estimated 12-month backlog and 54% and 55% of our total backlog. Generally, our customers are not contractually committed to specific volumes of services under our MSAs, and most of our contracts can be terminated on short notice even if we are not in default. We determine the estimated backlog for these MSAs using recurring historical trends, factoring in seasonal demand and projected customer needs based upon ongoing communications. In addition, many of our MSAs are subject to renewal, and these potential renewals are considered in determining estimated backlog. As a result, estimates for remaining performance obligations and backlog are subject to change based on, among other things, project accelerations; project cancellations or delays, including but not limited to those caused by commercial issues, regulatory requirements, natural disasters, emergencies and adverse weather conditions; and final acceptance of change orders by customers. These factors can cause revenues to be realized in periods and at levels that are different than originally projected.

Previous wording

The increase in remaining performance obligations from December 31, 2023 to March 31, 2024 was primarily attributable to multiple new project awards, while the decrease in backlog from December 31, 2023 to March 31, 2024 was primarily attributable to completed work on existing MSAs across the Electric Power and Underground and Infrastructure segments.

Current wording

The increase in remaining performance obligations from December 31, 2023 to June 30, 2024 was primarily attributable to multiple new project awards, while the increase in backlog from December 31, 2023 to June 30, 2024 was primarily attributable to new project awards included in the Electric Power segment.

Previous wording

During the three months ended March 31, 2024, there were no material changes outside the ordinary course of business in the specified contractual obligations or changes to our capital allocation priorities as set forth in Item 7. Management’s Discussion and Analysis of Financial Conditionand Results of Operations in Part II of the 2023 Annual Report. We anticipate that our future cash flows from operating activities, cash and cash equivalents on hand, existing borrowing capacity under our senior credit facility and commercial paper program and ability to access capital markets for additional capital will provide sufficient funds to enable us to meet our cash requirements for the next twelve months and over the longer term.

Current wording

During the six months ended June 30, 2024, there were no material changes outside the ordinary course of business in the specified contractual obligations or changes to our capital allocation priorities as set forth in Item 7. Management’s Discussion and Analysis of Financial Conditionand Results of Operations in Part II of the 2023 Annual Report. Subsequent to June 30, 2024, and as described below, we entered into, and borrowed the full amount available under, a new $400 million 90-day term loan facility, borrowed approximately $1.2 million under our commercial paper program and amended our credit facility. We anticipate that our future cash flows from operating activities, cash and cash equivalents on hand, existing borrowing capacity under our senior credit facility and commercial paper program and ability to access capital markets for additional capital will provide sufficient funds to enable us to meet our cash requirements for the next twelve months and over the longer term.

Previous wording

Cash flow from operating activities is primarily influenced by demand for our services and operating margins but is also influenced by the timing of working capital needs associated with the various types of services that we provide. Our working capital needs may increase when we commence large volumes of work under circumstances where project costs are required to be paid before the associated receivables are billed and collected. Additionally, operating cash flows may be negatively impacted as a result of unpaid and delayed change orders and claims. Changes in project timing due to delays or accelerations and other economic, regulatory, market and political factors that may affect customer spending could also impact cash flow from operating activities. Further information with respect to our cash flow from operating activities is set forth below and in Note 16 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Current wording

Cash flow from operating activities is primarily influenced by demand for our services and operating margins but is also influenced by the timing of working capital needs associated with the various types of services that we provide. Our working capital needs may increase when we commence large volumes of work under circumstances where project costs are required to be paid before the associated receivables are billed and collected. Additionally, operating cash flows can be negatively impacted as a result of unpaid and delayed change orders and claims. Changes in project timing due to delays or accelerations and other economic, regulatory, market and political factors that may affect customer spending could also impact cash flow from operating activities. Further information with respect to our cash flow from operating activities is set forth below and in Note 16 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Previous wording

(2)Further information with respect to our cash and cash equivalents is set forth below and in Note 15 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report. This amount includes $216.6 million in jurisdictions outside of the U.S., principally in Canada and Australia. There are currently no legal or economic restrictions that would materially impede our ability to repatriate such cash.

Current wording

(1)Further information with respect to our cash and cash equivalents is set forth below and in Note 15 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report. This amount includes $258.8 million in jurisdictions outside of the U.S., principally in Canada and Australia. There are currently no legal or economic restrictions that would materially impede our ability to repatriate such cash.

Previous wording

We may also seek to access the capital markets from time to time to raise additional capital, increase liquidity as necessary, refinance or extend the term of our existing indebtedness, fund acquisitions or otherwise fund our capital needs. While our financial strategy and consistent performance have allowed us to maintain investment grade ratings, our ability to access capital markets in the future depends on a number of factors, including our financial performance and financial position, our credit ratings, industry conditions, general economic conditions, our backlog, capital expenditure commitments, market conditions and market perceptions of us and our industry.

Current wording

We are evaluating our longer-term debt financing options, and we may seek to access the capital markets from time to time to raise additional capital, increase liquidity as we deem necessary, refinance or extend the term of our existing indebtedness, fund acquisitions or otherwise fund our capital needs. While our financial strategy and consistent performance have allowed us to maintain investment grade ratings, our ability to access capital markets in the future depends on a number of factors, including our financial performance and financial position, our credit ratings, industry conditions, general economic conditions, our backlog, capital expenditure commitments, market conditions and market perceptions of us and our industry.

Previous wording

Sources and Uses of Cash, Cash Equivalents and Restricted Cash During the Three Months Ended March 31, 2024 and 2023

Current wording

Sources and Uses of Cash, Cash Equivalents and Restricted Cash During the Six Months Ended June 30, 2024 and 2023

Previous wording

Net cash provided by operating activities of $238.0 million and $38.4 million in the three months ended March 31, 2024 and 2023 primarily reflected earnings adjusted for non-cash items and cash provided and used by the main components of working capital: “Accounts and notes receivable,” “Contract assets,” “Accounts payable and accrued expenses,” and “Contract liabilities.” Net cash provided by operating activities during March 31, 2023 was negatively impacted by incremental working capital requirements and the timing of billings related to the large renewable transmission project in Canada as discussed further in Note 3 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Current wording

Net cash provided by operating activities of $629.3 million and $165.8 million in the six months ended June 30, 2024 and 2023 primarily reflected earnings adjusted for non-cash items and cash provided and used by the main components of working capital: “Accounts and notes receivable,” “Contract assets,” “Accounts payable and accrued expenses,” and “Contract liabilities.” Net cash provided by operating activities during the six months ended June 30, 2023 was negatively impacted by incremental working capital requirements and the timing of billings related to the large renewable transmission project in Canada as discussed further in Note 3 of the Notes to Condensed Consolidated Financial Statements in Item 1. Financial Statements of Part I of this Quarterly Report.

Previous wording

Days sales outstanding (DSO) represents the average number of days it takes revenues to be converted into cash, which management believes is an important metric for assessing liquidity. A decrease in DSO has a favorable impact on cash flow from operating activities, while an increase in DSO has a negative impact on cash flow from operating activities. DSO is calculated by using the sum of current accounts receivable, net of allowance (which includes retainage and unbilled balances), plus contract assets, less contract liabilities, and divided by average revenues per day during the quarter. DSO as of March 31, 2024 was 71 days, which was lower than DSO of 77 days as of March 31, 2023 and lower than our five-year historical average DSO of 83 days. This decrease in DSO as compared to March 31, 2023 was partially due to an increase in contract liabilities related to favorable billing terms on certain large projects and increased revenues in the three months ended March 31, 2024. Although the decrease in DSO had a positive impact on cash flow from operating activities, unapproved change orders included in contract assets from the aforementioned large renewable transmission project in Canada continued to negatively impact DSO and cash flow from operating activities as of and for the three months ended March 31, 2024. Also negatively impacting cash flow from operating activities was our prepayment of amounts to suppliers for certain project materials that require a long lead time during the three months ended March 31, 2024 and 2023 and payments of a significant amount of accounts payable balances on certain large renewable projects during the three months ended March 31, 2024 that were outstanding as of December 31, 2023.

Current wording

Days sales outstanding (DSO) represents the average number of days it takes revenues to be converted into cash, which management believes is an important metric for assessing liquidity. A decrease in DSO has a favorable impact on cash flow from operating activities, while an increase in DSO has a negative impact on cash flow from operating activities. DSO is calculated by using the sum of current accounts receivable, net of allowance (which includes retainage and unbilled balances), plus contract assets, less contract liabilities, and divided by average revenues per day during the quarter. DSO as of June 30, 2024 was 68 days, which was lower than DSO of 78 days as of June 30, 2023 and lower than our five-year historical average DSO of 82 days. This decrease in DSO as compared to June 30, 2023 was partially due to an increase in contract liabilities related to favorable billing terms on certain large projects and increased revenues in the six months ended June 30, 2024. Although the decrease in DSO had a positive impact on cash flow from operating activities, unapproved change orders included in contract assets from the aforementioned large renewable transmission project in Canada continued to negatively impact DSO and cash flow from operating activities as of and for the six months ended June 30, 2024.

Previous wording

Net cash used in investing activities in the three months ended March 31, 2024 included $384.1 million related to acquisitions and $83.1 million of capital expenditures. Partially offsetting these items were $28.7 million of proceeds from the disposition of a non-core business, $26.6 million of proceeds from the sale of a non-integral equity investment and $26.4 million of proceeds from the sale of, and insurance settlements related to, property and equipment.

Current wording

Net cash used in investing activities in the six months ended June 30, 2024 included $450.8 million related to acquisitions and $244.6 million of capital expenditures. Partially offsetting these items were $55.2 million of proceeds from the sale of, and insurance settlements related to, property and equipment; $29.2 million of proceeds from the sale of a non-integral equity investment and $28.7 million of proceeds from the disposition of a non-core business.

Previous wording

Net cash used in investing activities in the three months ended March 31, 2023 included $452.3 million related to acquisitions and $80.3 million of capital expenditures. Partially offsetting these items were $39.1 million of cash received from the sale of investments and $10.8 million of proceeds from the sale of, and insurance settlements related to, property and equipment.

Current wording

Net cash used in investing activities in the six months ended June 30, 2023 included $452.3 million related to acquisitions and $185.6 million of capital expenditures. Partially offsetting these items were $42.3 million of proceeds from the sale of non- integral equity investments and $35.0 million of proceeds from the sale of, and insurance settlements related to, property and equipment.

Previous wording

Net cash used in financing activities in the three months ended March 31, 2024 included $504.5 million of net repayments under our senior credit facility and commercial paper program, $75.7 million of payments to satisfy tax withholding obligations associated with stock-based compensation and the payment of $13.7 million of dividends.

Current wording

Net cash used in financing activities in the six months ended June 30, 2024 included $707.0 million of net repayments under our senior credit facility and commercial paper program, $77.8 million of payments to satisfy tax withholding obligations associated with stock-based compensation and the payment of $27.0 million of dividends.

Previous wording

Net cash provided by financing activities in the three months ended March 31, 2023 included $380.6 million of net borrowings under our senior credit facility and commercial paper program, partially offset by $108.7 million of payments to satisfy tax withholding obligations associated with stock-based compensation; the payment of $12.8 million of dividends; and $8.7 million of net distributions to non-controlling interests.

Current wording

Net cash provided by financing activities in the six months ended June 30, 2023 included $491.7 million of net borrowings under our senior credit facility and commercial paper program, partially offset by $110.8 million of payments to satisfy tax withholding obligations associated with stock-based compensation and the payment of $24.5 million of dividends.

Previous wording

We expect to continue to utilize cash for similar financing activities in the future, including repayments of our outstanding debt, payment of cash dividends and repurchases of our common stock and/or debt securities.

Current wording

We expect to continue to utilize cash for similar financing activities in the future, including repayments of our outstanding debt, payment of cash dividends and repurchases of our common stock and/or debt securities. See Significant Sources of Cash above for information about additional financing activities subsequent to June 30, 2024.