Gross Profit-We recognized gross profit of $117.5 million (11.6% of revenue) during the current year quarter compared with gross profit of $100.7 million (6.4% of revenue) during the third quarter 2008. During the third quarter 2008, CB&I Lummus recognized an $86.0 million charge associated with the South Hook and Isle of Grain II projects in the United Kingdom ("the U.K. Projects"). Our results for the third quarter 2009 included a charge of $17.9 million for the South Hook project. The net impact of other project charges and claim settlements in the period was not significant. Gross profit for the first nine months of 2009 was $394.6 million (11.2% of revenue), compared with $68.8 million (1.6% of revenue) during the comparable prior year period. The prior year nine-month period reflects a $424.0 million charge for the U.K. projects. Although the comparable current year period reflects a $65.0 million charge for the South Hook project, the period benefited from a favorable second quarter claim settlement and a favorable project mix.
Selling and Administrative Expenses-Selling and administrative expenses for the three months ended September 30, 2009 were $48.3 million (4.8% of revenue), compared with $54.9 million (3.5% of revenue), for the comparable 2008 period. Selling and administrative expenses for the nine months ended September 30, 2009 were $158.8 million (4.5% of revenue), compared with $171.0 million (3.9% of revenue), for the comparable 2008 period. The absolute dollar decrease as compared to 2008 for both the quarter and year-to-date periods is primarily attributable to a significant reduction in our global and business sector administrative support costs, partly offset by higher estimated incentive program costs.
Equity Earnings-Equity earnings totaled $9.9 million and $28.8 million for the three and nine months ended September 30, 2009 compared to $12.0 million and $34.2 million for the comparable periods of 2008. The decrease for the three and nine month periods is due primarily to higher technology licensing and catalyst sales for various proprietary technologies in joint venture investments within Lummus Technology during 2008 as compared to the current periods. Other Operating (Income) Expense-Other operating income for the three months ended September 30, 2009 was ($1.5) million versus expense of $0.1 million in the comparable 2008 period. Other operating expense for the nine months ended September 30, 2009 was $9.9 million, versus $0.1 million in the comparable 2008 period. The current quarter and year-to-date period included a gain associated with the sale of a non-controlling equity investment held by CB&I Lummus. The current quarter gain was partially offset primarily by ongoing severance costs. The year-to-date period gain was offset by severance costs, costs associated with the reorganization of our business sectors in early 2009, and costs associated with the closure of certain fabrication facilities in the United States, which we expect to be completed by the fourth quarter of 2009. Income (Loss) from Operations-Income from operations for the three and nine months ended September 30, 2009 was $74.5 million and $237.1 million, respectively, versus income from operations of $51.8 million and a loss from operations of ($85.7) million, respectively, during the comparable prior year periods. The increase during both the three and nine months ended September 30, 2009, as compared to the comparable prior year periods, was due to the reasons noted above.
Interest Expense and Interest Income-Interest expense was $4.9 million and $16.0 million, respectively, during the three and nine-month periods ended September 30, 2009, compared with $5.4 million and $14.5 million for the corresponding 2008 periods. The $0.5 million decrease during the current year quarter, as compared to the comparable prior year period, was primarily due to a lower outstanding balance on our Term Loan. The $1.5 million increase for the year-to-date period was attributable to higher periodic borrowings on our revolving credit facility during the first half of 2009, partly offset by a lower outstanding balance on our Term Loan. Interest income was $0.4 million and $1.2 million, respectively, during the three and nine-month periods ended September 30, 2009, compared with $1.7 million and $7.2 million for the same period in 2008. The decrease for both the quarter and year-to-date periods was due to lower short-term investment levels and lower rates of return.

Income Tax Expense-Income tax expense for the three and nine months ended September 30, 2009 was $28.1 million (40.1% of pre-tax income), and $85.3 million (38.4% of pre-tax income), respectively, versus income tax expense of $37.8 million (78.5% of pre-tax income), and an income tax benefit of $8.6 million (9.2% of pre-tax loss), respectively, in the comparable periods of 2008. The prior-year periods were impacted by the aforementioned charges on the U.K. Projects, for which we did not provide an income tax benefit for their net losses in the third quarter of 2008. Our 2009 third quarter and year-to-date rates also reflect the impact of project losses in the U.K., where we have not provided an associated income tax benefit, partially offset by the income tax benefit of net operating losses utilized in other jurisdictions.
Net Income Attributable to Noncontrolling Interests-Net income attributable to noncontrolling interests for the three and nine months ended September 30, 2009 was $1.1 million and $3.9 million compared with $1.8 million and $5.3 million for the comparable periods in 2008. The changes compared with 2008 are commensurate with the levels of operating income for the contracting entities. Segment Results -
CB&I Steel Plate Structures
New Awards/Backlog-During the three months ended September 30, 2009, new awards were $1.4 billion compared with $338.4 million in the comparable prior-year period. Significant new awards during the current quarter included low temperature/cryogenic and ambient storage tanks in the Middle East (approximately $530.0 million), LNG and condensate storage tank in Australia, (approximately $550.0 million) and a crude oil terminal expansion project in Panama (approximately $100.0 million). New awards for the nine months ended September 30, 2009 totaled $2.0 billion versus $1.8 billion in the comparable prior-year period.
Revenue-Revenue of $383.5 million during the three months ended September 30, 2009 decreased $117.0 million, or 23%, as compared with the corresponding 2008 period. The decrease in the current year period relative to the comparable prior year period was primarily due to reduced oil sands related work in Canada. Revenue during the nine months ended September 30, 2009 of $1.3 billion, decreased $199.0 million, or 14%, as compared to the prior year period, also as a result of a lower volume of work in Canada and the wind down of two large projects in Australia.
Income from Operations-Income from operations for the three and nine months ended September 30, 2009 was $34.3 million (8.9% of revenue) and $105.0 million (8.3% of revenue), respectively, versus $54.1 million (10.8% of revenue) and $157.8 million (10.8% of revenue), respectively, during the comparable prior year periods. Both the three and nine months ended September 30, 2009, were impacted by lower overhead recoveries on lower revenue volume and higher pre-contract, severance and facility closure costs. Additionally, the prior year periods benefited from a more favorable project mix, principally in the Middle East and Canada.
CB&I Lummus
New Awards/Backlog-During the three months ended September 30, 2009, new awards were $109.7 million compared with $220.3 million in the comparable prior-year period. New awards included scope increases on existing work in South America and various other awards throughout the world. New awards for the nine months ended September 30, 2009 totaled $491.6 million versus $936.3 million in the comparable prior-year period.
Revenue-Revenue of $528.3 million during the three months ended September 30, 2009 decreased $424.3 million, or 45%, as compared with the corresponding 2008 period. Revenue during the nine months ended September 30, 2009 of $2.0 billion, decreased $640.0 million, or 24%, as compared to the prior-year period. The 2009 quarter and year-to-date periods were impacted by a lower volume of LNG terminal work in the U.S., Europe and South America, partially offset by higher revenue for refinery work in Europe, as compared to the comparable prior year periods.

Income (Loss) from Operations-Income from operations for the three and nine months ended September 30, 2009 was $18.6 million (3.5% of revenue) and $75.1 million (3.8% of revenue), respectively, versus a loss from operations of ($29.6) million (3.1% of revenue) and ($326.3) million (12.4% of revenue), respectively, during the comparable prior-year periods. Included in the 2008 quarter was an $86.0 million charge for the U.K. Projects. Our results for the 2009 third quarter included a $17.9 million charge for the South Hook project. The net impact of other project charges and claim settlements was not significant; however, the period was impacted by lower overhead recoveries on lower revenue volume. Included in our 2008 nine-month results was a $424.0 million charge for the U.K. Projects. Although our comparable 2009 nine-month results included a $65.0 million charge for the South Hook project, the period benefited from a favorable second quarter claim settlement and a favorable project mix.
The additional 2009 charges for the South Hook project reflect continued cost increases from poor labor productivity and subcontractor performance. If weather factors, labor productivity and subcontractor performance on the project were to decline from amounts utilized in our current estimates, our schedule for project completion, and our future results of operations would be negatively impacted. Lummus Technology
New Awards/Backlog-During the three months ended September 30, 2009, new awards for Lummus Technology were $97.3 million compared with $144.9 million in the comparable prior year period. Significant new awards for Lummus Technology included an ethylene cracking heaters award (approximately $40.0 million). New awards for the nine months ended September 30, 2009 totaled $224.8 million versus $476.8 million in the comparable prior-year period. The decrease for both the three and nine month 2009 periods as compared to the comparable prior-year period was due to fewer licensing and heater supply awards.
Revenue-Revenue of $98.6 million during the three months ended September 30, 2009 decreased $12.0 million, or 11%, as compared with the corresponding 2008 period. Revenue during the nine months ended September 30, 2009 of $262.0 million, decreased $74.1 million, or 22%, as compared to the prior-year period. Both the current quarter and year-to-date periods were impacted by fewer licensing and heater supply contracts.
Income from Operations-Income from operations for the three and nine months ended September 30, 2009 was $21.6 million (21.9% of revenue) and $57.0 million (21.7% of revenue), respectively, versus $27.3 million (24.7% of revenue) and $82.9 million (24.7% of revenue), respectively, during the comparable prior year periods. Both the three and nine months ended September 30, 2009 were impacted by lower revenue volume and lower equity earnings on fewer licensing awards, offset partially by lower selling and administrative costs, as compared to the prior year periods.
Goodwill-Based upon our current strategic planning and associated goodwill impairment assessments, we do not believe there is a reasonable possibility that our reporting units are at risk of recognizing a goodwill impairment charge. Liquidity and Capital Resources
At September 30, 2009, cash and cash equivalents totaled $212.0 million. Operating-During the first nine months of 2009, cash provided by operating activities totaled $107.8 million, as cash flow from earnings was partially offset by year-to-date payments on our major CB&I Lummus LNG projects. Investing-In the first nine months of 2009, we invested $36.1 million for capital expenditures, primarily in support of projects and facilities. These expenditures were partially offset by $19.2 million of proceeds from the sales of property, plant and equipment and a non-controlling equity investment in the third quarter.
We continue to evaluate and selectively pursue opportunities for additional expansion of our business through the acquisition of complementary businesses. These acquisitions, if they arise, may involve the use of cash or may require further debt or equity financing.

Financing-During the first nine months of 2009, net cash flows generated from financing activities totaled $32.8 million, primarily as a result of our issuance of shares associated with our Share Issuance Program (see below) and our stock-based compensation plans of $24.2 million and $7.4 million, respectively. Dividends were suspended beginning in the first quarter of 2009. To raise additional capital, effective August 18, 2009, we entered into a Sales Agency Agreement pursuant to which we may issue and sell from time to time through our sales agent, up to 10 million shares of our common stock. We anticipate that we may issue and sell up to 5 million shares through the end of 2009. We expect to use net proceeds from sales of our common stock for general corporate purposes. During the three-months ended September 30, 2009, we sold 1,449,507 shares.
Our primary internal source of liquidity is cash flow generated from operations. Capacity under a revolving credit facility is also available, if necessary, to fund operating or investing activities. We have a five-year, $1.1 billion, committed and unsecured revolving credit facility, which terminates in October 2011. As of September 30, 2009, no direct borrowings were outstanding under the revolving credit facility, but we had issued $389.4 million of letters of credit under the five-year facility. Such letters of credit are generally issued to customers in the ordinary course of business to support advance payments and performance guarantees or in lieu of retention on our contracts. As of September 30, 2009, we had $710.6 million of available capacity under this facility. The facility contains a borrowing sublimit of $550.0 million and certain restrictive covenants, the most restrictive of which include a maximum leverage ratio, a minimum fixed charge coverage ratio and a minimum net worth level. The facility also places restrictions on us with regard to subsidiary indebtedness, sales of assets, liens, investments, type of business conducted and mergers and acquisitions, among other restrictions.
In addition to the revolving credit facility, we have three committed and unsecured letter of credit and term loan agreements (the "LC Agreements") with Bank of America, N.A., as administrative agent, JPMorgan Chase Bank, N.A., and various private placement note investors. Under the terms of the LC Agreements, either banking institution (the "LC Issuers") can issue letters of credit. In the aggregate, the LC Agreements provide up to $275.0 million of capacity. As of September 30, 2009, no direct borrowings were outstanding under the LC Agreements, but all three tranches of LC Agreements were fully utilized. Tranche A, a $50.0 million facility, and Tranche B, a $100.0 million facility, are both five-year facilities which terminate in November 2011, and Tranche C is an eight-year, $125.0 million facility expiring in November 2014. The LC Agreements contain certain restrictive covenants, the most restrictive of which include a minimum net worth level, a minimum fixed charge coverage ratio and a maximum leverage ratio. The LC Agreements also include restrictions with regard to subsidiary indebtedness, sales of assets, liens, investments, type of business conducted, affiliate transactions, sales and leasebacks, and mergers and acquisitions, among other restrictions. In the event of default under the LC Agreements, including our failure to reimburse a draw against an issued letter of credit, the LC Issuer could transfer its claim against us, to the extent such amount is due and payable by us, no later than the stated maturity of the respective LC Agreement. In addition to quarterly letter of credit fees that we pay under the LC Agreements, to the extent that a term loan is in effect, we would also be assessed a floating rate of interest over LIBOR.
We also have various short-term, uncommitted revolving credit facilities across several geographic regions of approximately $1.5 billion. These facilities are generally used to provide letters of credit or bank guarantees to customers in the ordinary course of business to support advance payments, performance guarantees or in lieu of retention on our contracts. At September 30, 2009, we had available capacity of $685.0 million under these uncommitted facilities. In addition to providing letters of credit or bank guarantees, we also issue surety bonds in the ordinary course of business to support our contract performance. Additionally, we have a $160.0 million unsecured Term Loan facility with JPMorgan Chase Bank, N.A., as administrative agent, and Bank of America, N.A., as syndication agent. Interest under the Term Loan is based upon LIBOR plus an applicable floating spread and is paid quarterly in arrears. We also have an interest rate swap that provides for an interest rate of approximately 5.6%, inclusive of the applicable floating spread. The Term Loan will continue to be repaid in equal installments of $40.0 million per year, with the last principal payment due in November 2012. The Term Loan contains similar restrictive covenants to the ones noted above for the revolving credit facility.

We could be impacted as a result of the current global financial, credit, and economic crisis if our customers delay or cancel projects, if our customers experience a material change in their ability to pay us, if we are unable to meet our restrictive covenants, or if the banks associated with our current, committed and unsecured revolving credit facility, committed and unsecured letter of credit and term loan agreements, and uncommitted revolving credit facilities, were to cease or reduce operations.
We were in compliance with all restrictive lending covenants as of September 30, 2009; however, our ability to remain in compliance and the availability of such lending facilities could be impacted by circumstances or conditions beyond our control caused by the global financial, credit, and economic crisis, including but not limited to, cancellation of contracts, changes in currency exchange or interest rates, performance of pension plan assets, or changes in actuarial assumptions.
As of September 30, 2009, the following commitments were in place to support our ordinary course obligations:

                                                  Amounts of Commitments by Expiration Period
(In thousands)                 Total         Less than 1 Year       1-3 Years        4-5 Years        After 5 Years

Letters of Credit/Bank
Guarantees                  $ 1,462,510      $         794,587      $  612,640      $    49,005      $         6,278
Surety Bonds                    259,378                132,118         127,225               35                    -

Total Commitments           $ 1,721,888      $         926,705      $  739,865      $    49,040      $         6,278

Note: Letters of credit include $31.5 million of letters of credit issued in support of our insurance program.
The equity and credit markets continue to be volatile. A continuation of this level of volatility in the credit markets may increase costs associated with issuing letters of credit under our short-term, uncommitted credit facilities. Notwithstanding these adverse conditions, we believe that our cash on hand, funds generated by operations, amounts available under existing, committed credit facilities and external sources of liquidity, such as the issuance of debt and equity instruments, will be sufficient to finance our capital expenditures, the settlement of commitments and contingencies (as more fully described in Note 8 to our Condensed Consolidated Financial Statements) and our working capital needs for the foreseeable future. However, there can be no assurance that such funding will be available, as our ability to generate cash flows from operations and our ability to access funding under the revolving credit facility and LC Agreements may be impacted by a variety of business, economic, legislative, financial and other factors, which may be outside of our control. Additionally, while we currently have significant, uncommitted bonding facilities, primarily to support various commercial provisions in our contracts, a termination or reduction of these bonding facilities could result in the utilization of letters of credit in lieu of performance bonds, thereby reducing our available capacity under the revolving credit facility. Although we do not anticipate a reduction or termination of the bonding facilities, there can be no assurance that such facilities will be available at reasonable terms to service our ordinary course obligations.
We are a defendant in a number of lawsuits arising in the normal course of business and we have in place appropriate insurance coverage for the type of work that we have performed. As a matter of standard policy, we review our litigation accrual quarterly and as further information is known on pending cases, increases or decreases, as appropriate, may be recorded in accordance with the FASB ASC's Commitments and Contingencies Topics.
For a discussion of pending litigation, including lawsuits wherein plaintiffs allege exposure to asbestos due to work we may have performed, see Note 8 to our Condensed Consolidated Financial Statements. Off-Balance Sheet Arrangements
We use operating leases for facilities and equipment when they make economic sense, including sale-leaseback arrangements. We have no other significant off-balance sheet arrangements.

New Accounting Standards
For a discussion of new accounting standards, see the applicable section included within Note 1 to our Condensed Consolidated Financial Statements. Critical Accounting Estimates
The discussion and analysis of financial condition and results of operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent assets and liabilities. We evaluate our estimates on an on-going basis, based on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Our management has discussed the development and selection of our critical accounting estimates with the Audit Committee of our Supervisory Board of Directors. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our Condensed Consolidated Financial Statements:
Revenue Recognition-Revenue is primarily recognized using the percentage-of-completion method. Our contracts are awarded on a competitive bid and negotiated basis. We offer our customers a range of contracting options, including fixed-price, cost reimbursable and hybrid approaches. Contract revenue . . .