6 unchanged sentences
Our business, results of operations, financial condition, cash flows, and stock price can be adversely affected by pandemics, epidemics, or other public health emergencies, such as COVID-19.
−Removed: Our business, results of operations, financial condition, cash flows, and stock price can be adversely affected by pandemics, epidemics, or other public health emergencies, such as COVID-19.
In March 2020, the World Health Organization characterized COVID-19 as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency.
−Removed: The outbreak has resulted in governments around the world implementing increasingly stringent measures to help control the spread of the virus, including quarantines, “shelter in place” and “stay at home” orders, travel restrictions, business curtailments, school closures, vaccination or testing mandates and other measures.
−Removed: In addition, governments and central banks in several parts of the world have enacted fiscal and monetary stimulus measures to counteract the impacts of COVID-19.
+Added: The outbreak resulted in governments around the world implementing increasingly stringent measures to help control the spread of the virus, including quarantines, “shelter in place” and “stay at home” orders, travel restrictions, business curtailments, school closures, vaccination or testing mandates and other measures.
+Added: In addition, governments and central banks in several parts of the world enacted fiscal and monetary stimulus measures to counteract the impacts of COVID-19.
We are considered a critical infrastructure industry, as defined by the U.S.
1 unchanged sentence
Although we have continued to operate our facilities to date consistent with federal guidelines and state and local orders, the outbreak of COVID-19 and any preventive or protective actions taken by governmental authorities may have a material adverse effect on our operations, supply chain, customers, and transportation networks, including business shutdowns or disruptions.
−Removed: While we do continue to operate, during 2021 we experienced price increases in our raw materials, especially copper and steel, which appear to be a result of COVID-19, as well supply chain challenges related to certain manufacturing parts.
−Removed: The extent to which COVID-19 may adversely impact our business depends on future developments, which are highly uncertain and unpredictable, depending upon the severity and duration of the outbreak and the effectiveness of actions taken globally to contain or mitigate its effects.
−Removed: Any resulting financial impact cannot be estimated reasonably at this time, but may materially adversely affect our business, results of operations, financial condition, and cash flows.
−Removed: Even after the COVID-19 pandemic has subsided, we may experience materially adverse impacts to our business due to any resulting economic recession or depression.
−Removed: Additionally, concerns over the economic
−Removed: impact of COVID-19 have caused extreme volatility in financial and other capital markets which may adversely impact our stock price and our ability to access capital markets.
+Added: During 2022 and 2021 we experienced price increases in our components and raw materials, especially copper and steel, which appear to be a result of COVID-19, as well supply chain challenges related to certain manufacturing parts.
+Added: Even though the COVID-19 pandemic has subsided, we may experience materially adverse impacts to our business due to any resulting economic recession or depression.
+Added: Additionally, concerns over the economic impact of COVID-19 have caused extreme volatility in financial and other capital markets which may adversely impact our stock price and our ability to access capital markets.
To the extent the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this Annual Report, such as those relating to our products and financial performance.
6 unchanged sentences
From time to time in the past we derived a significant portion of our sales from a limited number of customers, and such concentration may continue in the future.
−Removed: In 2021, 2020, and 2019, one customer, Texas AirSystems, accounted for more than 10% of our sales.
+Added: In 2022, 2021, and 2020, one customer, Texas AirSystems LLC accounted for more than 10% of our sales.
The loss of, or significant reduction in sales to, a major customer could have a material adverse effect on our results of operations, financial condition and cash flow.
10 unchanged sentences
Our product liability insurance policies have limits that, if exceeded, may result in material costs that would have an adverse effect on our future profitability.
+Added: An excess of or significant claim(s) could lead to the cancellation of our polices and the loss of and inability to find additional insurance carriers.
In addition, warranty claims are not covered by our product liability insurance and there may be types of product liability claims that are also not covered by our product liability insurance.
1 unchanged sentence
Our success depends largely upon the continued services of our officers and senior leadership team.
−Removed: In particular, our chief executive officer, Gary D.
+Added: In particular, our Chief Executive Officer ("CEO"), Gary D.
Fields, is critical to our vision, strategic direction, culture, and overall business success.
3 unchanged sentences
From time to time, there may be changes in our senior leadership team resulting from the hiring or departure of senior leadership team members, which could disrupt our business.
−Removed: While we have have a robust succession plan in place for each one of our officers and senior leadership team members, the loss of one or more could have a serious adverse effect on our business.
+Added: While we have a robust succession plan in place for each one of our officers and senior leadership team members, the loss of one or more could have a serious adverse effect on our business.
We do not maintain key-man insurance for Gary D.
5 unchanged sentences
Natural disasters such as tornadoes, ice storms and fires, as well as accidents, acts of terror, infection, and other factors beyond our control could adversely affect our operations.
−Removed: Our facilities are in areas where tornadoes are likely to occur, and the majority of our operations are at our Tulsa facilities.
+Added: Our facilities are in areas where tornadoes are likely to occur, and the majority of our operations are at our Tulsa, Oklahoma facilities.
With the acquisition of BASX in 2021, we now have operations in an area that is, historically, effected by wild fires.
The effects of natural disasters and other events could damage our facilities and equipment and force a temporary halt to manufacturing and other operations, and such events could consequently cause severe damage to our business.
−Removed: We maintain insurance against these sorts of events at AAON Oklahoma and AAON Coil Products with $100 million of total coverage with a per occurrence deductible of $2.5 million and BasX with $20 million of total cover with a per occurrence deductible of $5 thousand;
+Added: We maintain insurance against these sorts of events;
however, this is not guaranteed to cover all the losses and damages incurred.
5 unchanged sentences
Variability in self-insurance liability estimates could impact our results of operations.
−Removed: We self-insure for employee health insurance and workers’ compensation insurance coverage up to a predetermined level, beyond which we maintain stop-loss insurance from a third-party insurer for claims over $225,000 and $750,000 for employee health insurance claims and workers’ compensation insurance claims, respectively.
+Added: We self-insure for certain employee health insurance and workers’ compensation insurance coverage up to a predetermined level, beyond which we maintain stop-loss insurance from a third-party insurer.
Our aggregate exposure varies from year to year based upon the number of participants in our insurance plans.
6 unchanged sentences
Substantially all of the markets in which we participate are highly competitive.
−Removed: The most significant competitive factors we face are product reliability, product performance, service, and price, with the relative importance of these factors varying among our product line.
+Added: The most significant competitive factors we face are product reliability, product performance, service, manufacturing lead-times, and price, with the relative importance of these factors varying among our product line.
Other factors that affect competition in the HVAC market include the development and application of new technologies and an increasing emphasis on the development of more efficient HVAC products.
10 unchanged sentences
We are dependent upon components purchased from third parties, as well as raw materials such as steel, copper and aluminum.
−Removed: Occasionally, we enter into cancellable and non-cancellable contracts on terms from six to 18 months for raw materials and components at fixed prices.
+Added: Occasionally, we enter into cancellable and non-cancellable contracts on terms from six to 18 months for raw materials and components.
However, if a key supplier is unable or unwilling to meet our supply requirements, we could experience supply interruptions or cost increases, either of which could have an adverse effect on our gross profit.
−Removed: We risk having losses resulting from the use of non-cancellable fixed price contracts.
−Removed: Historically, we have attempted to limit the impact of price fluctuations on commodities by entering into non-cancellable fixed price contracts with our major suppliers for periods of six to 18 months.
−Removed: We expect to receive delivery of raw materials from our fixed price contracts for use in our manufacturing operations.
−Removed: These fixed price contracts are not accounted for using hedge accounting since they meet the normal purchases and sales exemption.
+Added: We risk having losses resulting from the use of non-cancellable contracts.
+Added: Historically, we have attempted to limit the impact of price fluctuations on commodities by entering into non-cancellable contracts with our major suppliers for periods of six to 18 months.
+Added: We expect to receive delivery of raw materials from our contracts for use in our manufacturing operations.
+Added: These contracts are not accounted for using hedge accounting since they meet the normal purchases and sales exemption.
Risks Related to Electronic Data Processing and Digital Information
5 unchanged sentences
Any cyber-related attack or other improper disclosure of confidential information could have a material adverse effect on our business, as well as other negative consequences, including significant damage to our reputation, litigation, regulatory actions, and increased cost.
+Added: We are reliant on information technology.
+Added: We are reliant on information technology in all aspects of our business, operated and maintained by the Company as well as under control of third parties.
+Added: If we do not invest sufficient capital in a timely manner to acquire, develop, or implement new information technologies or maintain or upgrade current information technologies, we could suffer outages as well as be at a competitive disadvantage within our industry which could have a material adverse effect upon our financial condition and results of operations.
Risks Related to Governmental Regulation and Policies
24 unchanged sentences
We are subject to international regulations that could adversely affect our business and results of operations.
−Removed: Due to our use of representatives in foreign markets, we are subject to many laws governing international relations, including those that prohibit improper payments to government officials and commercial customers, and restrict where we can do business, what information or products we can supply to certain countries and what information we can provide to a non-U.S.
+Added: Due to our use of Representatives in foreign markets, we are subject to many laws governing international relations, including those that prohibit improper payments to government officials and commercial customers, and restrict
+Added: where we can do business, what information or products we can supply to certain countries and what information we can provide to a non-U.S.
government, including but not limited to the Foreign Corrupt Practices Act, U.K.
6 unchanged sentences
Our inability or delay in developing or marketing products that match customer demand while also meeting applicable efficiency and environmental standards may negatively impact our results.
−Removed: We expect to start transitioning to a new refrigerant with lower global warming potential for our HVAC systems in 2023 and must be fully compliant under current governmental regulations by 2025.
−Removed: We expect to incur costs associated with this transition related to the purchase of the new refrigerant as well as additional sensors and
−Removed: detectors on our HVAC systems.
+Added: We are transitioning to a new refrigerant with lower global warming potential for our HVAC systems and must be fully compliant under current governmental regulations by 2025.
+Added: We expect to incur costs associated with this transition related to the purchase of the new refrigerant as well as additional sensors and detectors on our HVAC systems.
In addition, we expect to incur cost to our facilities, specifically costs to store and use the new refrigerant in production;
5 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.