What changed in this filing

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Item 1. Financial Statements

2023-10-27 compared with 2023-07-28 · 110 added, 84 removed, 556 unchanged (26% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

5 unchanged sentences

Interest expense 2.4 2.4 10.9 6.0

Other (income) expense, net ( 9.0 ) 0.3 ( 13.0 ) 4.0

Other expense (income), net 2.5 2.4 ( 10.5 ) 6.4

Earnings before provision for income taxes 176.4 144.7 556.6 466.6

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

11 unchanged sentences

(dollars in millions)

September 30,

Current Assets

26 unchanged sentences

Stockholders’ Equity

Class A Common Stock (shares issued, 26,034,044 and 26,035,656 as of June 30, 2023 and December 31, 2022, respectively)

Common Stock (shares issued 164,673,550 and 164,671,938 as of June 30, 2023 and December 31, 2022, respectively)

Class A Common Stock (shares issued, 26,028,448 and 26,035,656 as of September 30, 2023 and December 31, 2022, respectively)

Common Stock (shares issued 164,679,146 and 164,671,938 as of September 30, 2023 and December 31, 2022, respectively)

Capital in excess of par value 570.8 555.9

8 unchanged sentences

(dollars in millions)

Six Months Ended

Nine Months Ended

September 30,

Operating Activities

15 unchanged sentences

Net proceeds from sale of marketable securities 91.1 152.5

Cash Provided by Investing Activities 33.8 40.9

Cash (Used in) Provided by Investing Activities ( 30.8 ) 58.3

Financing Activities

13 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

8 unchanged sentences

Balance at the beginning of period $ 568.3 $ 553.1 $ 555.9 $ 545.2

Conversion of Class A Common Stock — 0.2 — 0.2

Issuance of share units — — ( 10.3 ) ( 6.0 )

22 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023

September 30, 2023

Basis of Presentation

2 unchanged sentences

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for the three and six months ended June 30, 2023 are not necessarily indicative of the results expected for the full year.

Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results expected for the full year.

It is suggested the accompanying condensed consolidated financial statements be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 14, 2023.

12 unchanged sentences

The Company’s payment terms for the majority of its customers are 30 to 90 days from shipment.

Additionally, certain customers in China pay the Company prior to the shipment of products resulting in a customer deposits liability of $ 55.0 million and $ 85.7 million at June 30, 2023 and December 31, 2022, respectively.

Additionally, certain customers in China pay the Company prior to the shipment of products resulting in a customer deposits liability of $ 155.9 million and $ 85.7 million at September 30, 2023 and December 31, 2022, respectively.

Customer deposit liabilities are short term in nature, recognized into revenue within one year of receipt.

2 unchanged sentences

In addition, the Company monitors other risk factors including forward-looking information when establishing adequate allowances for credit losses, which reflects the current estimate of credit losses expected to be incurred over the life of the receivables.

The Company’s allowance for credit losses was $ 9.5 million at both June 30, 2023 and December 31, 2022.

The Company’s allowance for credit losses was $ 9.3 million and $ 9.5 million at September 30, 2023 and December 31, 2022, respectively.

Rebates and incentives are based on pricing agreements and are tied to sales volume.

33 unchanged sentences

(dollars in millions) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

10 unchanged sentences

Total Net Sales $ 937.5 $ 874.2 $ 2,864.7 $ 2,817.8

Acquisition and Disposition

During the third quarter of 2023, the Company acquired a privately-held water treatment company.

The Company paid an aggregate cash purchase price of $ 16.1 million, net of cash acquired.

The addition of the acquired company expands the Company's water treatment platform.

The acquired company is included in the North America segment.

As required under ASC 805 Business Combinations, results of operations have been included in the Company’s consolidated financial statements from the date of their acquisition.

On April 26, 2023, the Company sold its business in Turkey (disposal group), which was included in the Company's Rest of World segment, for an amount that approximated the carrying value of the net assets.

16 unchanged sentences

Cash flows associated with leases are materially consistent with the expense recorded in the condensed consolidated statement of earnings.

Leases (continued)

Supplemental balance sheet information related to leases is as follows:

(dollars in millions) June 30,

(dollars in millions) September 30,

2023 December 31, 2022

4 unchanged sentences

Operating lease assets $ 33.3 $ 29.8

Lease Term and Discount Rate June 30, 2023

Lease Term and Discount Rate September 30, 2023

Weighted-average remaining lease term 7.1 years

Weighted-average discount rate 4.10 %

Leases (continued)

The components of lease expense were as follows:

(dollars in millions) Three months ended

September 30,

Lease Expense Classification 2023 (1)

3 unchanged sentences

(2) 2022 includes short-term and variable lease expenses of $ 0.5 million and $ 0.8 million, respectively.

(dollars in millions) Six Months Ended

(dollars in millions) Nine Months Ended

September 30,

Lease Expense Classification 2023 (1)

4 unchanged sentences

Maturities of lease liabilities were as follows:

(dollars in millions) June 30,

(dollars in millions) September 30,

After 2027 13.2

3 unchanged sentences

The following table presents the components of the Company’s inventory balances:

(dollars in millions) June 30,

(dollars in millions) September 30,

2023 December 31, 2022

9 unchanged sentences

(dollars in millions) Three Months Ended

Balance at April 1, $ 181.2 $ 182.9

September 30,

Balance at July 1, $ 180.7 $ 180.0

Expense 18.6 14.0

Claims settled ( 17.6 ) ( 16.8 )

Balance at June 30, $ 180.7 $ 180.0

(dollars in millions) Six Months Ended

Balance at September 30, $ 181.7 $ 177.2

(dollars in millions) Nine Months Ended

September 30,

Balance at January 1, $ 182.5 $ 184.4

1 unchanged sentence

Claims settled ( 56.1 ) ( 49.8 )

Balance at June 30, $ 180.7 $ 180.0

Balance at September 30, $ 181.7 $ 177.2

In 2021, the Company renewed and amended its $ 500 million multi-year multi-currency revolving credit agreement with a new expiration date of April 1, 2026.

1 unchanged sentence

Borrowings under the Company's bank credit lines and commercial paper borrowings are supported by a $ 500 million revolving credit agreement.

As a result of the long-term nature of this facility, the Company’s commercial paper and credit line borrowings are classified as long-term debt at June 30, 2023.

As a result of the long-term nature of this facility, the Company’s commercial paper and credit line borrowings are classified as long-term debt at September 30, 2023.

At its option, the Company either maintains cash balances or pays fees for bank credit and services.

The facility requires the Company to maintain two financial covenants, a leverage ratio test and an interest coverage test.

The Company was in compliance with the covenants as of June 30, 2023.

The Company was in compliance with the covenants as of September 30, 2023.

Earnings per Share of Common Stock

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

7 unchanged sentences

Smith Combined Executive Incentive Compensation Plan which was originally approved by stockholders in 2002.

The number of shares available for granting of share units at June 30, 2023 was 2,470,397 .

The number of shares available for granting of share units at September 30, 2023 was 2,475,242 .

Upon stock option exercise or share unit vesting, shares are issued from treasury stock.

Total stock based compensation expense recognized in the three months ended June 30, 2023 and 2022 was $ 1.6 million and $ 1.4 million, respectively.

Total stock based compensation expense recognized in the six months ended June 30, 2023 and 2022 was $ 8.6 million and $ 9.0 million, respectively.

Stock Based Compensation (continued)

Total stock based compensation expense recognized in the three months ended September 30, 2023 and 2022 was $ 1.5 million and $ 1.4 million, respectively.

Total stock based compensation expense recognized in the nine months ended September 30, 2023 and 2022 was $ 10.1 million and $ 10.4 million, respectively.

Stock Options

4 unchanged sentences

The Company’s stock options are expensed ratably over the three year vesting period;

however, included in the stock option expense for the six months ended June 30, 2022 was expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period.

Stock based compensation expense attributable to stock options in the three months ended June 30, 2023 and 2022 was $ 0.3 million and $ 0.6 million, respectively.

Stock based compensation expense attributable to stock options in the six months ended June 30, 2023 and 2022 was $ 0.6 million and $ 4.5 million, respectively.

Changes in options, all of which relate to the Company’s Common Stock, were as follows for the six months ended June 30, 2023:

however, included in the stock option expense for the nine months ended September 30, 2022 was expense associated with the accelerated vesting of stock option awards for certain employees who either are retirement eligible or become retirement eligible during the vesting period.

Stock based compensation expense attributable to stock options in the three months ended September 30, 2023 and 2022 was $ 0.3 million and $ 0.5 million, respectively.

Stock based compensation expense attributable to stock options in the nine months ended September 30, 2023 and 2022 was $ 0.9 million and $ 5.0 million, respectively.

Changes in options, all of which relate to the Company’s Common Stock, were as follows for the nine months ended September 30, 2023:

Price Number of

4 unchanged sentences

Forfeited 65.03 ( 6,471 )

Outstanding at June 30, 2023 51.92 2,207,941 6 years $ 46.5

Exercisable at June 30, 2023 48.89 1,875,866 6 years $ 45.0

The weighted-average fair value per option at the date of grant during the six months ended June 30, 2022 using the Black-Scholes option-pricing model was $ 17.58 .

Outstanding at September 30, 2023 52.54 2,119,128 7 years $ 31.3

Exercisable at September 30, 2023 49.52 1,795,586 6 years $ 30.7

The weighted-average fair value per option at the date of grant during the nine months ended September 30, 2022 using the Black-Scholes option-pricing model was $ 17.57 .

Assumptions were as follows:

Six Months Ended

Stock Based Compensation (continued)

Nine Months Ended September 30,

Expected life (years) 5.7

6 unchanged sentences

The expected dividend yields for purposes of these models are based on the dividends paid in the preceding four quarters divided by the grant date market value of the Common Stock.

The expected volatility for purposes of these models are based on the historical volatility of the Common Stock.

The expected volatility for purposes of these models is based on the historical volatility of the Common Stock.

Participants in the Incentive Plan may also be awarded share units.

Share units vest three years after the date of grant.

The Company granted 168,044 and 93,211 share units under the Incentive Plan in the six months ended June 30, 2023 and 2022, respectively.

The Company granted 168,688 and 94,604 share units under the Incentive Plan in the nine months ended September 30, 2023 and 2022, respectively.

The share units were valued at $ 11.3 million and $ 6.9 million at the date of issuance in 2023 and 2022, respectively, based on the price of the Company’s Common Stock at the date of grant.

The share units are recognized as compensation expense ratably over the three-year vesting period;

however, included in share unit expense in the three and six months ended June 30, 2023 and 2022 was expense associated with accelerated vesting of share unit awards for certain employees who are retirement eligible or will become retirement eligible during the vesting period.

Stock based compensation expense attributable to share units of $ 1.0 million and $ 0.8 million was recognized in the three months ended June 30, 2023 and 2022, respectively.

Stock based compensation expense attributable to share units of $ 7.6 million and $ 4.5 million was recognized in the six months ended June 30, 2023 and 2022, respectively.

however, included in share unit expense in the three and nine months ended September 30, 2023 and 2022 was expense associated with accelerated vesting of share unit awards for certain employees who are retirement eligible or will become retirement eligible during the vesting period.

Stock based compensation expense attributable to share units of $ 1.1 million and $ 1.0 million was recognized in the three months ended September 30, 2023 and 2022, respectively.

Stock based compensation expense attributable to share units of $ 8.7 million and $ 5.5 million was recognized in the nine months ended September 30, 2023 and 2022, respectively.

Certain non-U.S.-based employees receive the cash value of the share price at the vesting date in lieu of shares.

Unvested cash-settled awards are remeasured at each reporting period.

Stock Based Compensation (continued)

A summary of share unit activity under the Incentive Plan is as follows for the six months ended June 30, 2023:

A summary of share unit activity under the Incentive Plan is as follows for the nine months ended September 30, 2023:

Number of Units Weighted-Average

4 unchanged sentences

Forfeited ( 5,684 ) 66.26

Issued and unvested at June 30, 2023 388,796 63.19

Issued and unvested at September 30, 2023 383,895 63.29

Performance Stock Units

3 unchanged sentences

Potential payouts range from zero to 150 % of the target awards and changes from target amounts are reflected as performance adjustments.

The Company granted 24,580 performance stock units under the Incentive Plan in the six months ended June 30, 2023.

The Company granted 24,580 performance stock units under the Incentive Plan in the nine months ended September 30, 2023.

The performance stock units were valued at $ 1.7 million at the date of issuance in 2023, based on the price of the Company’s Common Stock at the date of grant of $ 67.14 .

The performance stock units are recognized as compensation expense ratably over the three-year vesting period.

Stock based compensation expense attributable to performance stock units of $ 0.2 million and $ 0.3 million was recognized in the three and six months ended June 30, 2023, respectively.

Stock based compensation expense attributable to performance stock units of $ 0.2 million and $ 0.5 million was recognized in the three and nine months ended September 30, 2023, respectively.

Certain non-U.S.-based executives receive the cash value of the share price at the vesting date in lieu of shares.

Unvested cash-settled awards are remeasured at each reporting period.

A summary of stock unit activity under the Incentive Plan is as follows for the six months ended June 30, 2023:

Stock Based Compensation (continued)

A summary of stock unit activity under the Incentive Plan is as follows for the nine months ended September 30, 2023:

Number of Units Weighted-Average

2 unchanged sentences

Granted 24,580 67.14

Forfeited ( 557 ) 67.14

Performance adjustments 12,285 67.14

Issued and unvested at June 30, 2023 36,526 67.14

Issued and unvested at September 30, 2023 36,308 67.14

The following table presents the components of the Company’s net pension expense:

(dollars in millions) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

11 unchanged sentences

The Company is no t required to make a contribution in 2023.

Pensions (continued)

In 2021, the Company's Board of Directors approved the termination of the Company's largest defined benefit pension plan (the Plan) with a termination date of December 31, 2021.

3 unchanged sentences

The pension settlement income related to refunds from MML to the Plan for the final reconciliation of participant data.

The remaining pension assets associated with the Plan at June 30, 2023 were $ 27.4 million.

The remaining pension assets associated with the Plan at September 30, 2023 were $ 27.4 million.

The Company intends to use the remaining assets to fund future non-elective contributions to the Company’s defined contribution plan.

8 unchanged sentences

(dollars in millions) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

23 unchanged sentences

$ — $ 2.6 $ — $ 7.8

includes legal judgment income of:

$ — $ ( 11.5 ) $ — $ ( 11.5 )

(2) Adjustments:

4 unchanged sentences

Corporate expense

includes terminated acquisition-related expenses of:

$ — $ 4.3 $ — $ 4.3

includes pension settlement income of:

14 unchanged sentences

Assets (liabilities) measured at fair value on a recurring basis are as follows (dollars in millions):

Fair Value Measurement Using Balance Sheet Location June 30,

Fair Value Measurement Using Balance Sheet Location September 30,

2023 December 31, 2022

2 unchanged sentences

Items measured at fair value were comprised of the Company’s marketable securities (Level 1) and derivative instruments (Level 2).

There were no changes in the Company's valuation techniques used to measure fair values on a recurring basis during the six months ended June 30, 2023.

There were no changes in the Company's valuation techniques used to measure fair values on a recurring basis during the nine months ended September 30, 2023.

Derivative Instruments

17 unchanged sentences

The following table summarizes, by currency, the contractual amounts of the Company’s foreign currency forward contracts that are designated as cash flow hedges:

(dollars in millions) June 30, 2023 December 31, 2022

(dollars in millions) September 30, 2023 December 31, 2022

Buy Sell Buy Sell

10 unchanged sentences

These hedges are determined to be effective.

The Company recognized $ 0.8 million and $ 1.7 million after-tax gains associated with hedges of net investments in non-U.S.

subsidiaries in currency translation adjustment in other comprehensive loss in the three months ended June 30, 2023 and June 30, 2022, respectively.

The Company recognized $ 1.3 million and $ 1.4 million of after-tax losses associated with hedges of a net investment in non-U.S.

subsidiaries in currency translation adjustment in other comprehensive loss in the six months ended June 30, 2023 and June 30, 2022, respectively.

The contractual amount of the Company's foreign currency forward contracts that are designated as net investment hedges was zero as of June 30, 2023.

The Company recognized $( 0.2 ) million and zero of after-tax losses associated with hedges of net investments in non-U.S.

subsidiaries in currency translation adjustment in other comprehensive loss in the three months ended September 30, 2023 and September 30, 2022, respectively.

The Company recognized $ 1.1 million and $ 1.4 million of after-tax gains associated with hedges of a net investment in non-U.S.

subsidiaries in currency translation adjustment in other comprehensive loss in the nine months ended September 30, 2023 and September 30, 2022, respectively.

The contractual amount of the Company's foreign currency forward contracts that are designated as net investment hedges was $ 204.0 million as of September 30, 2023.

The following tables present the impact of derivative contracts on the Company’s financial statements.

Fair value of derivatives designated as hedging instruments under ASC 815:

(dollars in millions) Balance Sheet Location June 30,

(dollars in millions) Balance Sheet Location September 30,

2023 December 31,

1 unchanged sentence

The effect of cash flow hedges on the condensed consolidated statement of earnings:

Three Months Ended June 30 (dollars in millions):

Three Months Ended September 30 (dollars in millions):

Derivatives in ASC 815 cash flow hedging relationships Amount of gain recognized in other

11 unchanged sentences

Foreign currency contracts $ 1.4 $ 5.7 Cost of products sold $ 2.5 $ 1.0

Six Months Ended June 30 (dollars in millions):

Nine Months Ended September 30 (dollars in millions):

Derivatives in ASC 815 cash flow hedging relationships Amount of gain recognized in other

16 unchanged sentences

These foreign exchange contracts did not qualify for hedge accounting in accordance with ASC 815 and as such were marked to market through earnings.

The fair value of the foreign exchange contracts was zero as of June 30, 2023.

The fair value of the foreign exchange contracts was an asset balance of $ 0.5 million as of September 30, 2023 which was recorded in Other current assets within the consolidated balance sheet.

The fair value of the foreign exchange contracts was an asset balance of $ 0.1 million as of December 31, 2022 and recorded in Other current assets within the consolidated balance sheet.

The following table summarizes the contractual amounts of the Company's foreign exchange contracts that are designated as balance sheet hedges:

(dollars in millions) June 30, 2023 December 31, 2022

(dollars in millions) September 30, 2023 December 31, 2022

Buy Sell Buy Sell

Canadian dollar $ — $ 45.5 $ — $ 81.5

Chinese yuan 200.6 — — —

The amounts recognized within the consolidated statements of earnings related to the Company's foreign exchange contracts are set forth below.

Three Months Ended June 30 (dollars in millions):

Three Months Ended September 30 (dollars in millions):

Derivatives not designated as hedging instruments:

Location within the consolidated statements of earnings

Foreign exchange contracts Other (income) expense - net $ 0.1 $ ( 0.2 )

Six Months Ended June 30 (dollars in millions):

Foreign exchange contracts Other expense (income) - net $ 1.1 $ 0.4

Nine Months Ended September 30 (dollars in millions):

Derivatives not designated as hedging instruments:

Location within the consolidated statements of earnings

Foreign exchange contracts Other (income) expense - net $ — $ 1.1

The Company’s effective income tax rate for the three and six months ended June 30, 2023 was 24.8 percent and 25.3 percent, respectively.

Foreign exchange contracts Other expense (income) - net $ 1.1 $ 1.5

The Company’s effective income tax rate for the three and nine months ended September 30, 2023 was 23.2 percent and 24.7 percent, respectively.

The Company estimates that its annual effective income tax rate for the full year 2023 will be approximately 24 percent.

The effective income tax rate for the three and six months ended June 30, 2022 was 23.7 percent and 23.6 percent, respectively.

The change in the effective income tax rate for the three and six months ended June 30, 2023 compared to the effective income tax rate for the three and six months ended June 30, 2022 was primarily due to a change in geographical earnings mix.

In addition, results in the six months ended June 30, 2023 included a $ 15.6 million impairment expense recorded with no associated tax benefit.

Refer to Note 3 - Disposition for additional information regarding the impairment expense.

As of June 30, 2023, the Company had $ 15.0 million of unrecognized tax benefits of which $ 2.9 million would affect its effective income tax rate if recognized.

The effective income tax rate for the three and nine months ended September 30, 2022 was 24.1 percent and 23.7 percent, respectively.

The change in the effective income tax rate for the three and nine months ended September 30, 2023 compared to the effective income tax rate for the three and nine months ended September 30, 2022 was primarily due to a change in geographical earnings mix.

In addition, results in the nine months ended September 30, 2023 included a $ 15.6 million impairment expense recorded with no associated tax benefit.

Refer to Note 3 - Acquisition and Disposition for additional information regarding the impairment expense.

As of September 30, 2023, the Company had $ 15.0 million of unrecognized tax benefits of which $ 2.9 million would affect its effective income tax rate if recognized.

The Company recognizes potential interest and penalties related to unrecognized tax benefits as a component of income tax expense.

8 unchanged sentences

To facilitate its financing support business, the Provider has collateralized lending facilities in place with multiple Chinese banks under which the Company has agreed to repurchase inventory if both requested by the banks and certain defined conditions are met, primarily related to the aging of the distributors’ notes.

Commitments and Contingencies (continued)

The Provider is required to indemnify the Company for any losses the Company would incur in the event of an inventory repurchase under these arrangements.

Potential losses under the repurchase arrangements represent the difference between the repurchase price and net proceeds from the resale of product plus costs incurred in the process, less related distributor rebates.

Before considering any reduction of distributor rebate accruals of $ 1.0 million and $ 1.1 million as of June 30, 2023 and December 31, 2022, respectively, and from the resale of the related inventory, the gross amount the Company would be obligated to repurchase, which would be contingent on the default of all of the outstanding loans, was approximately $ 2.1 million as of June 30, 2023 and $ 2.4 million as of December 31, 2022.

The Company’s reserves for estimated losses under repurchase arrangements were immaterial as of June 30, 2023 and December 31, 2022.

Before considering any reduction of distributor rebate accruals of $ 1.0 million and $ 1.1 million as of September 30, 2023 and December 31, 2022, respectively, and from the resale of the related inventory, the gross amount the Company would be obligated to repurchase, which would be contingent on the default of all of the outstanding loans, was approximately $ 1.7 million as of September 30, 2023 and $ 2.4 million as of December 31, 2022.

The Company’s reserves for estimated losses under repurchase arrangements were immaterial as of September 30, 2023 and December 31, 2022.

Changes in Accumulated Other Comprehensive Loss by Component

1 unchanged sentence

(dollars in millions) Three Months Ended

September 30,

Cumulative foreign currency translation

22 unchanged sentences

Changes to accumulated other comprehensive loss by component are as follows:

(dollars in millions) Six Months Ended

(dollars in millions) Nine Months Ended

September 30,

Cumulative foreign currency translation

Balance at beginning of period $ ( 84.1 ) $ ( 44.7 )

Other comprehensive gain (loss) before reclassifications 1.5 ( 24.0 )

Other comprehensive loss before reclassifications ( 5.4 ) ( 52.9 )

Balance at end of period ( 89.5 ) ( 97.6 )

17 unchanged sentences

See Note 10 - Pensions for additional details.

Included in the results for the three and six months ended June 30, 2023 is $ 11.0 million of foreign currency translation losses reclassified from accumulated other comprehensive loss to Net earnings related to the Company's sale of its business in Turkey.

See Note 3 - Disposition, for additional details.

Included in the results for the nine months ended September 30, 2023 is $ 11.0 million of foreign currency translation losses reclassified from accumulated other comprehensive loss to Net earnings related to the Company's sale of its business in Turkey.

See Note 3 - Acquisition and Disposition for additional details.

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.

What changed 10-Q

Item 1. Financial Statements