Thanks for your reponses. From the DB, there are no carriage returns. By happenstance, I opened an old version of the report and I noticed it was not wrapping. When I looked at the difference between the two reports, the text field was set to text interpreation HTML on the report where it did not wrap, and it was set to "none" on the one where it did wrap. Once i changed it to HTML, it no longer wraps. So, I thought it was probably something in the formula that was being interpreted, but I do not see anything odd:
"Timesheet Comments: " + {AXProjectPostedTransaction_query.TS Internal Comment}
go figure...