3 unchanged sentences
These risk factors should be considered in addition to our cautionary comments concerning forward-looking statements in this Report, including statements related to markets for our products and trends in our business that involve a number of risks and uncertainties.
−Removed: RISKS RELATED TO THE COVID-19 PANDEMIC
−Removed: Our financial condition and results of operations have been and may continue to be adversely affected by public health issues, including epidemics or pandemics such as COVID-19 .
−Removed: The COVID-19 pandemic subjected our business, operations, financial performance, cash flows and financial condition to a number of risks.
−Removed: We have faced increased operational challenges and costs from the need to protect employee health and safety, workplace disruptions and restrictions on the movement of people, raw materials and goods, both at our own facilities and at our customers and suppliers.
−Removed: The COVID-19 pandemic continues to create challenges for the global economy, and the ultimate impacts and significance of these challenges to our business, financial condition, results of operations, and cash flows will depend greatly on the future course of the COVID-19 pandemic.
−Removed: The COVID-19 pandemic drove changes in our customers’ priorities and practices, as our customers in both the United States and globally confront competing budget priorities and more limited resources.
−Removed: To the extent that COVID-19 continues to impact demand for our products and solutions or impairs the viability of some of our customers, our financial condition, results of operations, and cash flows could be adversely affected, and those impacts could be material.
−Removed: The magnitude and duration of the impact of the COVID-19 pandemic on the global economy and the world’s response continue to be uncertain.
−Removed: To the extent the pandemic continues to adversely affect portions of our business and our overall operating and financial results, it may also adversely affect our operating and financial results in a manner that is not presently known to us or that we currently do not expect to present significant risks to our operations or financial results.
−Removed: The extent of the pandemic’s effect on our business will depend on future developments, including the duration, spread and intensity of the pandemic and the successful distribution, acceptance, and efficacy of vaccines for COVID-19, all of which are uncertain and difficult to predict.
OPERATIONAL RISKS
19 unchanged sentences
We leverage our internal information technology infrastructures, and those of our business partners, to enable, sustain, and support our global business activities.
−Removed: In addition, we rely on networks and services, including internet sites, data hosting and processing facilities and tools and other hardware, software and technical applications and platforms, some of which are managed, hosted, provided and/or used by third-parties or their vendors, to assist in conducting our business.
+Added: In addition, we rely on networks and services, including internet sites, data hosting and processing facilities and tools and other hardware, software and technical applications and platforms, some of which are managed,
+Added: hosted, provided and/or used by third-parties or their vendors, to assist in conducting our business.
+Added: All third parties contracted by the Company have been vetted and have significant reputations in the industry.
+Added: As such, controls from the third party vendors have been deemed to be adequate prior to any goods or services having been provided.
The data we store, and process may include customer payment information, personal information concerning our employees, confidential financial information, and other types of sensitive business-related information.
Numerous and evolving cybersecurity threats pose potential risks to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our technology systems and data.
−Removed: In addition, the laws and regulations governing security of data on IT systems is evolving and adding another layer of complexity in the form of new requirements.
+Added: In addition, the laws and regulations governing security of data on IT systems are evolving and adding another layer of complexity in the form of new requirements.
In the past, we have had cybersecurity incidents and we have made, and continue to make investments, seeking to address these threats, including monitoring of networks and systems, hiring of experts to evaluate and test our systems, employee training and security policies for employees and third-party providers.
−Removed: The frequency and the techniques used in these attacks has increased significantly and may be difficult to detect for periods of time and we may face difficulties in anticipating and implementing adequate preventative measures.
+Added: The frequency and the techniques used in these attacks have increased significantly and may be difficult to detect for periods of time and we may face difficulties in anticipating and implementing adequate preventative measures.
While the breaches of our IT systems to date have not been material to our business or results of operations, the costs of attempting to protect our IT systems and data will increase, and there can be no assurance that these added security efforts will prevent all breaches of our IT systems or thefts of our data.
−Removed: If our IT systems are damaged or cease to function properly, the networks or service providers we rely upon fail to function properly, or we or one of our third-party providers suffer a loss or disclosure of our business or stakeholder information due to any number of causes ranging from catastrophic events or power outages to improper data handling or security breaches (including ransomware, denial-of-service attacks, a malicious website, the use of social engineering and other means to affect the confidentiality, integrity and
−Removed: availability of our technology systems and data) and our business continuity plans do not effectively address these failures on a timely basis, we may be exposed to potential disruption in operations, loss of customers, reputational, competitive and business harm as well as significant costs from remediation, ransom payments, litigation and regulatory actions.
+Added: If our IT systems are damaged or cease to function properly, the networks or service providers we rely upon fail to function properly, or we or one of our third-party providers suffer a loss or disclosure of our business or stakeholder information due to any number of causes ranging from catastrophic events or power outages to improper data handling or security breaches (including ransomware, denial-of-service attacks, a malicious website, the use of social engineering and other means to affect the confidentiality, integrity and availability of our technology systems and data) and our business continuity plans do not effectively address these failures on a timely basis, we may be exposed to potential disruption in operations, loss of customers, reputational, competitive and business harm as well as significant costs from remediation, ransom payments, litigation and regulatory actions.
We are also subject to an increasing number of evolving data privacy and security laws and regulations.
54 unchanged sentences
There is currently aggressive competition for employees who have experience in technology and engineering.
−Removed: We may not be able to continue to attract and retain engineers or other qualified technical personnel
−Removed: necessary for the development and growth of our business or to replace personnel who may leave our employ in the future.
+Added: We may not be able to continue to attract and retain engineers or other qualified technical personnel necessary for the development and growth of our business or to replace personnel who may leave our employ in the future.
The failure to retain and recruit key engineering and technical personnel could cause additional expense, potentially reduce the efficiency of our operations and could harm our business.
13 unchanged sentences
Accurately forecasting our expected volumes and appropriately adjusting our capacity have been, and will continue to be, important factors in determining our results of operations.
−Removed: We cannot guarantee that we will be able to increase manufacturing capacity to a level that meets demand for our products and solutions, which could prevent us from meeting increased customer demand and could harm our business.
+Added: We cannot guarantee that we will be able to increase manufacturing capacity, and with the support of sufficiently skilled and cost-effective labor, to a level that meets demand for our products and solutions, which could prevent us from meeting increased customer demand and could harm our business.
However, if we overestimate our demand and overbuild our capacity, we may have significantly underutilized assets and we may experience reduced margins.
11 unchanged sentences
Volatility in the supply and cost for energy exists in the locations where we operate, particularly Europe and China.
−Removed: As Europe continues to face impacts from the conflict in Ukraine and sanctions between the European Union and Russia, there are concerns about the availability and costs related to providing resources to meet the energy needs of Europe.
+Added: As Europe continues to face impacts from the conflicts in the middle east and in Ukraine and sanctions between the European Union and Russia, there are concerns about the availability and costs related to providing resources to meet the energy needs of Europe.
Should these energy needs not be met, there are risks that the European operations of the Company may experience uncertainties related to the availability and cost of such resources.
At times, China has experienced energy shortages, and has, in the past, resorted to rolling blackouts.
−Removed: Although these blackouts have not materially impacted our operations, it remains a risk we may face in the future.
+Added: Although these blackouts have not materially impacted on our operations, it remains a risk we may face in the future.
STRATEGIC RISKS
9 unchanged sentences
The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities.
−Removed: Certain of the acquisition agreements by which we have acquired companies require the former owners to indemnify us against certain liabilities related to the operation of the company before we acquired it.
+Added: Certain of the acquisition agreements by which we have acquired companies require the former owners to indemnify us against certain liabilities related to the operation of the company before we acquire it.
In most of these agreements, however, the liability of the former owners is limited, and certain former owners may be unable to meet their indemnification responsibilities.
1 unchanged sentence
We intend to develop new products and solutions and expand into new markets, which may not be successful and could harm our operating results.
−Removed: We intend to expand into new markets and develop new and modified products and solutions based on our existing technologies and engineering capabilities, including the continued expansion of our controlled motion systems and
−Removed: integrated electronics.
+Added: We intend to expand into new markets and develop new and modified products and solutions based on our existing technologies and engineering capabilities, including the continued expansion of our controlled motion systems and integrated electronics.
These efforts have required and will continue to require us to make substantial investments, including significant research, development and engineering expenditures and capital expenditures for new, expanded or improved manufacturing facilities.
31 unchanged sentences
Our indebtedness may limit our operations and our use of our cash flow, and any failure to comply with the covenants that apply to our indebtedness could adversely affect our liquidity and financial results.
−Removed: Our ability to service our indebtedness depends on our financial performance, which is affected by prevailing economic
−Removed: conditions and financial, business, regulatory and other factors.
+Added: Our ability to service our indebtedness depends on our financial performance, which is affected by prevailing economic conditions and financial, business, regulatory and other factors.
Some of these factors are beyond our control.
9 unchanged sentences
Any such actions could have a material adverse effect on our business, financial condition, results of operations and liquidity.
−Removed: In addition, certain of our variable rate debt uses Term Standard Overnight Financing Rate ("SOFR") as a benchmark for establishing the interest rate, a portion of which is hedged with London Interbank Offering Rate (“LIBOR”) based interest rate derivatives.
−Removed: LIBOR has been the subject of proposals for reform, and is currently scheduled to be discontinued on June 30, 2023.
−Removed: The Company expects to amend LIBOR-based interest rate derivative agreements by negotiating new SOFR-based agreements.
−Removed: The discontinuation of LIBOR is not expected to materially impact our interest rate exposure.
Unforeseen exposure to additional income tax liabilities may negatively affect our operating results.
14 unchanged sentences
Increased healthcare, pension and other costs under the Company’s benefit plans could adversely affect the Company’s financial condition and results of operations.
−Removed: We provide health benefits to many of our employees and the costs to provide such benefits continue to increase annually.
+Added: We provide health benefits to many of our employees and the costs of providing such benefits continue to increase annually.
The amount of any increase or decrease in the cost of Company-sponsored health plans will depend on a number of different factors including new governmental regulations mandating types of coverage and reporting and other requirements.
10 unchanged sentences
Our efforts to maintain and improve profitability depend in part on our ability to maintain or reduce the costs of materials, components, supplies and labor, including establishing production capabilities at our low cost regional subcontractors.
−Removed: While the failure of any single cost containment effort by itself would most likely not significantly impact our results, we cannot give any assurances that we will be successful in controlling material and labor costs to maintain a competitive cost structure.
+Added: While the failure of any single cost containment effort by itself would most likely not significantly
+Added: impact our results, we cannot give any assurances that we will be successful in controlling material and labor costs to maintain a competitive cost structure.
There is substantial price competition in our industry, and our success and profitability will depend on our ability to maintain a competitive cost and price structure.
25 unchanged sentences
This litigation could result in significant costs and divert our management’s focus away from operations.
−Removed: We are subject to a variety of litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our financial results.
−Removed: We are subject to a variety of litigation and other legal and regulatory proceedings incidental to our business, including claims for damages arising out of the use of products or services and claims relating to intellectual property, employment, tax, commercial disputes, competition, sales and trading practices, environmental, personal injury, insurance coverage, acquisition, as well as regulatory investigations or enforcement.
+Added: We are subject to a variety of litigation and other legal and regulatory proceedings in the normal course of our business that could adversely affect our financial results.
+Added: We are subject to a variety of litigation and other legal and regulatory proceedings incidental to our business, including claims for damages arising out of the use of products or services and claims relating to intellectual property,
+Added: employment, tax, commercial disputes, competition, sales and trading practices, environmental, personal injury, insurance coverage, acquisition, as well as regulatory investigations or enforcement.
We may also become subject to lawsuits as a result of past or future acquisitions including liabilities retained from, or representations, warranties or indemnities provided in connection with these acquisitions.
10 unchanged sentences
In addition, we cannot predict the affect that additional or modified environmental regulations may have on us or our customers.
−Removed: Unresolved Staff Comments.
−Removed: Not applicable.
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.