12 unchanged sentences
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: 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: During 2023, 2022, and 2021 we experienced some price increases in our components and raw materials, which appear to be a result of COVID-19 and subsequent inflation, as well as supply chain challenges related to certain manufacturing parts.
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.
6 unchanged sentences
In the HVAC business, a decline in economic activity as a result of these cyclical or other factors typically results in a decline in new construction and replacement purchases which could impact our sales volume and profitability.
−Removed: Our results of operations and financial condition could be negatively impacted by the loss of a major customer.
+Added: Our results of operations and financial condition could be negatively impacted by the loss of one or more major customers.
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 2022, 2021, and 2020, one customer, Texas AirSystems LLC accounted for more than 10% of our sales.
−Removed: 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.
+Added: The loss of, or significant reduction in sales to significant customers (or a related portfolio group of customers) could have a material adverse effect on our results of operations, financial condition and cash flow.
Further, the addition of new major customers in the future could increase our customer concentration risks as described above.
1 unchanged sentence
We are dependent on our third-party representatives to market and sell our products.
−Removed: If such relationships were terminated for any reason, it could materially and adversely affect our ability to generate revenues and profits.
+Added: If such relationships were terminated or impaired for any reason, it could materially and adversely affect our ability to generate revenues and profits.
Certain of our competitors with greater financial resources than us could target our third-party representatives for exclusive sales channels.
We may not be able to secure additional third-party representatives who will effectively market our products in certain geographical areas.
−Removed: In addition, adding new representatives requires additional administrative efforts and costs.
−Removed: If we are unable to establish new representative relationships or continue current relationships, our business, financial condition, and results of operations could be materially and adversely affected.
+Added: In addition, adding new representatives requires
+Added: additional administrative efforts and costs.
+Added: If we are unable to establish new representative relationships or continue current relationships, or terminate and replace our third-party representatives, our business, financial condition, and results of operations could be materially and adversely affected.
We may incur material costs as a result of warranty and product liability claims that would negatively affect our profitability .
20 unchanged sentences
Our facilities are in areas where tornadoes are likely to occur, and the majority of our operations are at our Tulsa, Oklahoma facilities.
−Removed: With the acquisition of BASX in 2021, we now have operations in an area that is, historically, effected by wild fires.
+Added: With the acquisition of BASX in 2021, we now have operations in an area that is, historically, impacted 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.
1 unchanged sentence
however, this is not guaranteed to cover all the losses and damages incurred.
−Removed: Furthermore, we may experience increases in our insurance premium costs in relation to these matters that may have a material adverse effect upon our business, liquidity, financial condition, or results of operations.
+Added: Furthermore, we may experience significant increases in our insurance premium costs in relation to these matters that may have a material adverse effect upon our business, liquidity, financial condition, or results of operations.
If we are unable to hire, develop or retain employees, it could have an adverse effect on our business.
6 unchanged sentences
We estimate our self-insurance liabilities using an analysis provided by our claims administrator and our historical claims experience.
−Removed: Our accruals for insurance reserves reflect these estimates and other management judgments, which are subject to a high degree of variability.
+Added: Our accruals for insurance reserves reflect these estimates and other management judgments, which are subject to a
+Added: high degree of variability.
If the number or severity of claims for which we self-insure increases, it could cause a material and adverse change to our reserves for self-insurance liabilities, as well as to our earnings.
22 unchanged sentences
These contracts are not accounted for using hedge accounting since they meet the normal purchases and sales exemption.
+Added: The use of such contracts could cause us to forego the economic benefits we would otherwise realize if prices were to change in our favor.
+Added: Additionally, should there be a downturn in the market, we could be committed to purchase more materials than necessary for our production and carry excess inventory which could result in additional costs to the business.
Risks Related to Electronic Data Processing and Digital Information
34 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
−Removed: 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 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.
2 unchanged sentences
Violations of these laws, which are complex, may result in criminal penalties or sanctions that could have a material adverse effect on our business, financial condition and results of operations.
−Removed: Changes in legislation or government regulations or policies could adversely effect on our results of operations.
+Added: Changes in legislation or government regulations or policies could adversely affect our results of operations.
Our sales, gross margins and profitability could be directly impacted by changes in legislation or government regulations or policies.
7 unchanged sentences
Furthermore, due to the expected increased demand of the newer refrigerants as well as the older hydrofluorocarbon refrigerants (as they are phased out), we expect to see increased manufacturing costs related to purchases of refrigerants and could see higher costs for future warranty claims.
+Added: As with any significant regulatory change, delays or other changes to implementation timing could also have a negative impact on our operations and profitability.
+Added: Additionally, regulations that reduce or eliminate the use of fossil fuels such as natural gas and propane may reduce or eliminate sales of gas fired equipment for which AAON holds a strong market position.
+Added: This will result in a shift to more air- and water-cooled heat pump type units to provide space heating.
+Added: This shift in product line could affect production productivity material costs and aftermarket warranty costs.
Future legislation or regulations relating to environmental policies, product certification, product liability, taxes, amount and availability of tax incentives and other matters, may impact the results of each of our operating segments and our consolidated results.
−Removed: Unresolved Staff Comments.
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.