Item 3. Legal Proceedings

The nature of our business ordinarily results in periodic regulatory proceedings before various state and federal authorities. In addition, we are party, as both plaintiff and defendant, to a number of lawsuits related to our business on an ongoing basis. Management believes that the outcome of all regulatory proceedings and litigation in which we are currently involved will not have amaterial adverse effect on our consolidated financial condition or results of operations. For more information regarding some of these proceedings, see Note 7 to our consolidated financial statements under the caption “Litigation.”