What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-06 compared with 2025-02-04 · 144 added, 60 removed, 141 unchanged (59% of the section changed)

5 unchanged sentences

Incremental Market Uncertainties

Recent events, including central bank interest rate increases, inflation, and conflicts in Ukraine and the Middle East are creating additional uncertainty in the global economy, generally, and in the markets we operate in.

Recent events, including the imposition of tariffs and other changes in international trade policy, central bank interest rate adjustments, inflation, and conflicts in Ukraine and the Middle East are creating additional uncertainty in the global economy, generally, and in the markets we operate in.

The aforementioned conflicts and other factors have had and will continue to have adverse effects on global supply chains, which may impact some aspects of our business.

Furthermore, we are mindful of the effects that adverse weather can have on our domestic supply chain.

Our Harvey, Illinois collective bargaining agreement with the United Steelworkers Union, which represents approximately 370 employees expired in April 2024.

As of February 3, 2025, the United Steelworkers Unions employees have continued to work while negotiations for a new contract are ongoing.

While both sides continue to negotiate, no assurance can be given that a mutual agreement will be reached without the United Steelworks Union approving and implementing a strike.

RESULTS OF OPERATIONS

The consolidated results of operations for the three months ended December 27, 2024 and December 29, 2023 were as follows:

The consolidated results of operations for the three months ended March 28, 2025 and March 29, 2024 were as follows:

Three months ended

(in thousands) December 27, 2024 December 29, 2023 Change % Change

(in thousands) March 28, 2025 March 29, 2024 Change % Change

Net sales $ 701,725 $ 792,911 $ (91,186) (11.5) %

3 unchanged sentences

Intangible asset amortization 10,166 14,221 (4,055) (28.5) %

Operating income 67,938 175,458 (107,520) (61.3) %

Asset impairment charges 127,733 — 127,733 100.0 %

Operating (loss) income (51,822) 178,810 (230,632) (129.0) %

Interest expense, net 8,261 8,321 (60) (0.7) %

Other expense, net 6,426 730 5,696 780.3 %

Income before income taxes 58,596 167,653 (109,057) (65.0) %

Income tax expense 12,260 29,272 (17,012) (58.1) %

Net income $ 46,336 $ 138,381 $ (92,045) (66.5) %

Volume (5.5) %

(Loss) income before income taxes (66,509) 169,759 (236,268) (139.2) %

Income tax (benefit) expense (16,452) 31,804 (48,256) (151.7) %

Net (loss) income $ (50,057) $ 137,955 $ (188,012) (136.3) %

Average selling prices (16.6) %

Net sales (11.5) %

Net sales decreased by $136.9 million or 17.1% to $661.6 million for the three months ended December 27, 2024, compared to $798.5 million for the three months ended December 29, 2023.

The decrease in net sales is primarily attributed to decreased average selling prices across the Company’s products of $96.2 million and decreased sales volume of $43.8 million.

Net sales decreased by $91.2 million, or 11.5%, to $701.7 million for the three months ended March 28, 2025, compared to $792.9 million for the three months ended March 29, 2024.

The decrease in net sales is primarily attributed to decreased average selling prices across the Company’s products of $131.4 million and partially offset by increased sales volume of $38.9 million.

Cost of sales

Volume (6.0) %

Average input costs (5.3) %

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Cost of sales 3.0 %

Cost of sales decreased by $17.4 million, or 3.4%, to $490.5 million for the three months ended December 27, 2024 compared to $507.9 million for the three months ended December 29, 2023.

The decrease was primarily due to decreased sales volume of $30.9 million partially offset by increased input costs of $7.0 million and increased freight costs of $4.9 million.

Cost of sales increased by $15.3 million, or 3.0%, to $516.6 million for the three months ended March 28, 2025 compared to $501.3 million for the three months ended March 29, 2024.

The increase was primarily due to increased sales volume of $22.5 million, increased freight costs of $8.8 million, and a decrease in solar tax credits of $8.2 million partially offset by decreased input costs of $26.8 million.

Selling, general and administrative

Selling, general and administrative expenses decreased by $9.2 million, or 9.1%, to $91.5 million for the three months ended December 27, 2024 compared to $100.6 million for the three months ended December 29, 2023.

The decrease was primarily due to lower medical and insurance expense of $6.6 million, lower commissions of $2.9 million, lower costs across other expense categories of $2.3 million and impacts of foreign exchange rates of $1.7 million, partially offset by increased investments in people and software of $3.2 million and increased stock compensation expense of $1.1 million.

Selling, general and administrative expenses increased by $0.5 million, or 0.5%, to $99.0 million for the three months ended March 28, 2025 compared to $98.5 million for the three months ended March 29, 2024.

The increase was primarily due to increased investments in people and software of $4.4 million partially offset by decreases in productivity of $3.2 million and other expense categories of $0.7 million.

Intangible asset amortization

Intangible asset amortization expense decreased to $11.7 million for the three months ended December 27, 2024 compared to $14.5 million for the three months ended December 29, 2023.

Intangible asset amortization expense decreased to $10.2 million for the three months ended March 28, 2025 compared to $14.2 million for the three months ended March 29, 2024.

The decrease in amortization expense resulted from certain intangibles becoming fully amortized.

Asset impairment charges

Asset impairment charges increased to $127.7 million for the three months ended March 28, 2025 compared to no asset impairment charges for the three months ended March 29, 2024.

The asset impairment charge were related to the impairment of HDPE assets as described in Note 14, “Fair Value Measurements”.

Interest expense, net

Interest expense, net increased by $0.4 million, or 5.3% to $8.2 million for the three months ended December 27, 2024 compared to $7.8 million for the three months ended December 29, 2023.

The increase is primarily due to increased interest rates on the Company’s Senior Secured Term Loan Facility.

Interest expense, net decreased by $0.1 million, or 0.7% to $8.3 million for the three months ended March 28, 2025 compared to $8.3 million for the three months ended March 29, 2024.

The decrease is primarily due to decreased interest rates on the Company’s Senior Secured Term Loan Facility.

Other expense, net

Other expense, net increased to $1.1 million for the three months ended December 27, 2024 compared to $12.2 thousand other expense for the three months ended December 29, 2023.

This increase is primarily due to increased foreign exchange losses of $1.0 million on intercompany loans.

Income tax expense

The Company ’ s income tax rate increased to 20.9% for the three months ended December 27, 2024 compared to 17.5% for the three months ended December 29, 2023.

The increase in the current period effective tax rate was driven by a decrease in the excess tax benefit associated with stock compensation.

Other expense, net increased to $6.4 million for the three months ended March 28, 2025 compared to $0.7 million other expense for the three months ended March 29, 2024.

This increase is primarily due to the loss on the sale of Northwest Polymers of $6.1 million.

Income tax (benefit) expense

The Company ’ s income tax rate increased to 24.7% for the three months ended March 28, 2025 compared to 18.7% for the three months ended March 29, 2024.

The increase in the current period effective tax rate was driven by the discrete tax impact of the deductible impairment of the HDPE long-lived assets.

SEGMENT RESULTS

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Both segments use Adjusted EBITDA as the primary measure of profit and loss.

Segment Adjusted EBITDA is income (loss) before income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, stock-based compensation, loss on extinguishment of debt, certain legal matters, and other items, such as inventory reserves and adjustments, (gain) loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, gain on purchase of business, loss on assets held for sale, restructuring costs and transaction costs.

Segment Adjusted EBITDA is income (loss) before income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, stock-based compensation, loss on extinguishment of debt, gains and losses on the divestiture of a business, asset impairment charges, certain legal matters, and other items, such as inventory reserves and adjustments, (gain) loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, gain on purchase of business, loss on assets held for sale, restructuring costs and transaction costs.

We define segment Adjusted EBITDA margin as segment Adjusted EBITDA as a percentage of segment Net sales.

Three months ended

(in thousands) December 27, 2024 December 29, 2023 Change % Change

(in thousands) March 28, 2025 March 29, 2024 Change % Change

Net sales $ 492,677 $ 590,820 $ (98,143) (16.6) %

1 unchanged sentence

Adjusted EBITDA margin 18.5 % 33.1 %

Volume (5.6) %

Average selling prices (19.5) %

Other (0.7) %

Net sales (16.6) %

Net sales decreased by $128.3 million, or 21.6%, to $465.4 million for the three months ended December 27, 2024 compared to $593.7 million for the three months ended December 29, 2023.

The decrease in net sales is primarily attributed to decreased average selling prices of $95.7 million and decreased sales volume of $33.3 million.

Net sales decreased by $98.1 million, or 16.6%, to $492.7 million for the three months ended March 28, 2025 compared to $590.8 million for the three months ended March 29, 2024.

The decrease in net sales is primarily attributed to decreased average selling prices of $115.5 million and partially offset by increased sales volume of $21.5 million.

Adjusted EBITDA

Adjusted EBITDA for the three months ended December 27, 2024 decreased by $112.0 million, or 54.8%, to $92.4 million from $204.4 million for the three months ended December 29, 2023.

Adjusted EBITDA margin decreased to 19.9% for the three months ended December 27, 2024 compared to 34.4% for the three months ended December 29, 2023.

The decreases in Adjusted EBITDA and Adjusted EBITDA margin were largely due to the decreases in average selling prices and sales volume.

Adjusted EBITDA for the three months ended March 28, 2025 decreased by $104.8 million, or 53.5%, to $90.9 million from $195.8 million for the three months ended March 29, 2024.

Adjusted EBITDA margin decreased to 18.5% for the three months ended March 28, 2025 compared to 33.1% for the three months ended March 29, 2024.

The decrease in Adjusted EBITDA and Adjusted EBITDA margin were largely due to lower average selling prices.

Safety & Infrastructure

Three months ended

(in thousands) December 27, 2024 December 29, 2023 Change % Change

(in thousands) March 28, 2025 March 29, 2024 Change % Change

Net sales $ 209,272 $ 202,419 $ 6,853 3.4 %

1 unchanged sentence

Adjusted EBITDA margin 17.2 % 12.6 %

Average selling prices (7.9) %

Solar energy tax credits 2.9 %

Other (0.2) %

Net sales 3.4 %

Net sales increased by $6.9 million, or 3.4%, for the three months ended March 28, 2025 to $209.3 million compared to $202.4 million for the three months ended March 29, 2024.

The increase is primarily attributed to higher sales volume of $17.4 million and lower solar credit rebates of $5.8 million partially offset by lower selling prices of $15.9 million.

Adjusted EBITDA

Adjusted EBITDA increased by $10.5 million, or 41.3%, to $36.1 million for the three months ended March 28, 2025 compared to $25.5 million for the three months ended March 29, 2024.

Adjusted EBITDA margin increased to 17.2% for the three months ended March 28, 2025 compared to 12.6% for the three months ended March 29, 2024.

The increase in Adjusted EBITDA and Adjusted EBITDA margin was largely due to higher than expected margins in the construction business.

The consolidated results of operations for the six months ended March 28, 2025 and March 29, 2024 were as follows:

Six months ended

(in thousands) March 28, 2025 March 29, 2024 Change % Change

Net sales $ 1,363,322 $ 1,591,392 $ (228,070) (14.3) %

Cost of sales 1,007,117 1,009,277 (2,160) (0.2) %

Gross profit 356,205 582,115 (225,910) (38.8) %

Selling, general and administrative 190,492 199,160 (8,668) (4.4) %

Intangible asset amortization 21,864 28,688 (6,824) (23.8) %

Asset impairment charges 127,733 — 127,733 100.0 %

Operating (loss) income 16,116 354,267 (338,151) (95.5) %

Interest expense, net 16,470 16,114 356 2.2 %

Other expense, net 7,559 742 6,817 918.7 %

(Loss) income before income taxes (7,913) 337,411 (345,324) (102.3) %

Income tax (benefit) expense (4,193) 61,076 (65,269) (106.9) %

Net income $ (3,720) $ 276,335 $ (280,055) (101.3) %

Volume (0.3) %

Average selling prices (14.3) %

Solar energy tax credits to be transferred 0.5 %

Other (0.2) %

Net sales (14.3) %

Net sales decreased by $8.4 million, or 4.1%, for the three months ended December 27, 2024 to $196.7 million compared to $205.1 million for the three months ended December 29, 2023.

The decrease is primarily attributed to lower sales volume of $10.5 million.

Net sales decreased by $228.1 million, or 14.3%, to $1,363.3 million for the six months ended March 28, 2025, compared to $1,591.4 million for the six months ended March 29, 2024.

The decrease in net sales is primarily attributed to decreased average selling prices of $227.7 million and lower sales volume of $4.9 million, partially offset by fewer solar energy tax credits to be transferred to certain customers of $8.3 million.

Cost of sales

Volume (0.3) %

Average input costs (2.3) %

Solar energy tax credits generated 1.3 %

Freight 1.4 %

Other (0.3) %

Cost of sales (0.2) %

Cost of sale s decreased by $2.2 million, or 0.2% to $1,007.1 million for the six months ended March 28, 2025 compared to $1,009.3 million for the six months ended March 29, 2024.

The decrease in cost of sales was primarily due to lower input costs of $22.7 million and lower sales volume of $3.4 million, partially offset by decreased benefit of solar energy tax credits of $13.2 million and higher freight costs of $13.7 million.

Selling, general and administrative

Selling, general and administrative expenses decreased by $8.7 million, or 4.4%, to $190.5 million for the six months ended March 28, 2025, compared to $199.2 million for the six months ended March 29, 2024.

The decrease was primarily due to increased productivity of $8.0 million, decrease in administrative costs due to a divested business of $3.1 million and decreased costs of other general and administrative expenses of $5.8 million, partially offset by increased spending on business improvement initiatives of $7.6 million, higher stock compensation of $3.9 million and higher costs of $0.6 million spread across a variety of other spend categories.

Intangible asset amortization

Intangible asset amortization expense decreased to $21.9 million for the six months ended March 28, 2025, compared to $28.7 million for the six months ended March 29, 2024.

The decrease in amortization expense resulted from certain intangibles becoming fully amortized.

Asset impairment charges

Asset impairment charges increased to $127.7 million for the six months ended March 28, 2025 compared to no asset impairment charges for the six months ended March 29, 2024.

The asset impairment charge were related to the impairment of HDPE assets as described in Note 14, “Fair Value Measurements”.

Interest expense, net

Interest expense, net, increased by $0.4 million, or 2.2%, to $16.5 million for the six months ended March 28, 2025, compared to $16.1 million for the six months ended March 29, 2024.

The increase is primarily due to increased interest rates on the Company’s Senior Secured Term Loan Facility.

Other expense, net

Other expense, net increased to $7.6 million for the six months ended March 28, 2025, compared to $0.7 million for the six months ended March 29, 2024.

This increase is primarily due to the loss on the sale of Northwest Polymers of $6.1 million.

Income tax (benefit) expense

The Company ’ s income tax rate increased to 53.0% for the six months ended March 28, 2025, compared to 18.1% for the six months ended March 29, 2024.

The increase in the current period effective tax rate was driven by the discrete tax impact of the deductible impairment of the HDPE long-lived assets.

SEGMENT RESULTS

Six months ended

(in thousands) March 28, 2025 March 29, 2024 Change % Change

Net sales $ 958,032 $ 1,184,481 $ (226,449) (19.1) %

Adjusted EBITDA $ 183,330 $ 400,112 $ (216,782) (54.2) %

Adjusted EBITDA decreased by $3.9 million, or 20.2%, to $15.6 million for the three months ended December 27, 2024 compared to $19.5 million for the three months ended December 29, 2023.

Adjusted EBITDA margin decreased to 7.9% for the three months ended December 27, 2024 compared to 9.5% for the three months ended December 29, 2023.

The decrease in Adjusted EBITDA and Adjusted EBITDA margin were largely due to lower sales volume.

Adjusted EBITDA margin 19.1 % 33.8 %

Volume (1.0) %

Average selling prices (17.8) %

Other (0.3) %

Net sales (19.1) %

Net sales decreased by $226.4 million, or 19.1%, to $958.0 million for the six months ended March 28, 2025, compared to $1,184.5 million for the six months ended March 29, 2024.

The decrease in net sales is primarily attributed to decreased average selling prices of $211.2 million and decreased sales volume of $11.8 million.

Adjusted EBITDA

Adjusted EBITDA for the six months ended March 28, 2025 decreased by $216.8 million, or 54.2%, to $183.3 million from $400.1 million for the six months ended March 29, 2024.

Adjusted EBITDA margin decreased to 19.1% for the six months ended March 28, 2025, compared to 33.8% for the six months ended March 29, 2024 .

The decrease in Adjusted EBITDA and Adjusted EBITDA margin was largely due to the decrease in average selling prices.

Safety & Infrastructure

Six months ended

(in thousands) March 28, 2025 March 29, 2024 Change % Change

Net sales $ 405,997 $ 407,545 $ (1,548) (0.4) %

Adjusted EBITDA $ 51,643 $ 45,042 $ 6,601 14.7 %

Adjusted EBITDA margin 12.7 % 11.1 %

Average selling prices (4.0) %

Solar energy tax credits to be transferred 2.0 %

Other (0.1) %

Net sales (0.4) %

Net sales decreased by $1.5 million, or 0.4%, to $406.0 million for the six months ended March 28, 2025, compared to $407.5 million for the six months ended March 29, 2024.

The decrease is primarily due to decreased average selling prices of $16.5 million, partially offset by higher volumes of $6.9 million, and decreased economic value of solar energy tax credits to be transferred to certain customers of $8.3 million.

Adjusted EBITDA

Adjusted EBITDA increased $6.6 million, or 14.7%, to $51.6 million for the six months ended March 28, 2025, compared to $45.0 million for the six months ended March 29, 2024.

Adjusted EBITDA margin increased to 12.7% for the six months ended March 28, 2025, compared to 11.1% for the six months ended March 29, 2024.

The increase in Adjusted EBITDA and Adjusted EBITDA margin was largely due to decreases in costs outpacing decreases in average selling price and higher volume.

LIQUIDITY AND CAPITAL RESOURCES

We believe we have sufficient liquidity to support our ongoing operations and to invest in future growth and create value for stockholders.

Our cash and cash equivalents were $310.4 million as of December 27, 2024, of which $96.3 million was held at non-U.S.

Our cash and cash equivalents were $330.4 million as of March 28, 2025, of which $82.1 million was held at non-U.S.

subsidiaries.

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We have access to the ABL Credit Facility to fund operational needs.

As of December 27, 2024, there were no outstanding borrowings under the ABL Credit Facility and no letters of credit issued under the ABL Credit Facility.

The borrowing base was estimated to be $325.0 million and approximately $325.0 million was available under the ABL Credit Facility as of December 27, 2024.

As of March 28, 2025, there were no outstanding borrowings under the ABL Credit Facility and no letters of credit issued under the ABL Credit Facility.

The borrowing base was estimated to be $325.0 million and approximately $325.0 million was available under the ABL Credit Facility as of March 28, 2025.

Outstanding letters of credit count as utilization of the commitments under the ABL Credit Facility and reduce the amount available for borrowings.

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The table below summarizes cash flow information derived from our statements of cash flows for the periods indicated:

Three months ended

(in thousands) December 27, 2024 December 29, 2023

Six months ended

(in thousands) March 28, 2025 March 29, 2024

Cash flows provided by (used in):

3 unchanged sentences

Operating activities

During the three months ended December 27, 2024, the Company was provided $74.4 million by operating activities compared to $158.1 million during the three months ended December 29, 2023.

The $83.7 million decrease in cash provided was primarily due to decreased operating income of $109.1 million partially offset by less working capital used of $10.2 million and the impact of taxes of $12.8 million.

During the six months ended March 28, 2025, the Company was provided $160.9 million cash flow by operating activities compared to $245.3 million during the six months ended March 29, 2024 .

The $84.4 million decrease in cash provided was primarily due to decreased operating income of $345.3 million partially offset by less working capital used of $68.5 million, the non-cash asset impairment charge of $127.7 million in operating income and the impact of taxes of $56.8 million.

Investing activities

During the three months ended December 27, 2024, the Company used $41.1 million in investing activities compared to $50.3 million during the three months ended December 29, 2023.

The $9.2 million decrease in cash used in investing activities was primarily due to a decrease of $3.0 million in capital expenditures and proceeds from the sale of equipment of $0.1 million.

Additionally, in fiscal 2024, the Company paid $6.0 million of purchase price payable related to the fiscal 2022 acquisition of Cascade Pipe and Poly & Conduit and Northwest Polymers.

No additional activity related to acquisitions occurred during the three months ended December 27, 2024.

During the six months ended March 28, 2025, the Company used $48.0 million in investing activities compared to $79.0 million during the six months ended March 29, 2024.

The $30.9 million decrease in cash used in investing activities was primarily due to a decrease of $9.9 million in capital expenditures, proceeds from the sale of properties and equipment of $7.1 million and proceeds from the sale of Northwest Polymers of $6.7 million.

Additionally, in fiscal 2024, the Company paid $6.0 million of purchase price payable related to the fiscal 2022 acquisition of Cascade Poly Pipe & Conduit and Northwest Polymers.

No additional activity related to acquisitions occurred during the six months ended March 28, 2025.

Financing Activities

During the three months ended December 27, 2024, the Company used $67.7 million in financing activities compared to $118.2 million used during the three months ended December 29, 2023.

The decrease in cash used in financing activities is primarily due to $46.4 million less cash used to repurchase common stock during the three months ended December 27, 2024 and $15.4 million less in issuance of common stock, net of shares withheld for tax partially offset by an increase in dividends paid of $11.1 million.

During the six months ended March 28, 2025, the Company used $129.2 million in financing activities compared to $187.5 million used during the six months ended March 29, 2024.

The decrease in cash used in financing activities is primarily due to $56.0 million less cash used to repurchase common stock during the six months ended March 28, 2025 and $13.1 million less in issuance of common stock, net of shares withheld for tax, partially offset by an increase in dividends paid of $10.3 million.

CHANGES IN CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no material changes in our critical accounting policies and estimates since the filing of our Annual Report on Form 10-K.

As described in Note 14 “Fair Value Measurements,” the Company recorded an asset impairment charge of $ 127,733 .

Of this charge, $ 92,397 was recorded against intangible assets, predominantly customer relationship intangibles.

As a result of the conditions related to this asset impairment charge, the estimated remaining weighted average useful life for customer relationships intangibles has been reduced from 7 years to 3 years, as of March 28, 2025.

As a result of the asset impairment charge, the GAAP basis for the amortization of customer relationship intangibles has been adjusted.

The Company will record amortization expense in future periods based upon the new GAAP basis and estimated useful life.

RECENT ACCOUNTING STANDARDS

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Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control.

We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report.

market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report.

In addition, even if our results of operations, financial condition and cash flows, and the development of the market in which we operate, are consistent with the forward-looking statements contained in this Quarterly Report, those results or developments may not be indicative of results or developments in subsequent periods.

A number of important factors, including, without limitation, the risks and uncertainties disclosed in the Company’s

filings with the U.S.

Securities and Exchange Commission, including but not limited to the Company’s most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements.

A number of important factors, including, without limitation, the risks and uncertainties disclosed in the Company’s filings with the SEC, including but not limited to the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements.

Additional factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation:

5 unchanged sentences

• high levels of imports of products similar to those manufactured by us;

• changes in federal, state, local and international governmental regulations and trade policies;

• changes in federal, state, local and international governmental regulations and trade policies, including application of tariffs;

• adverse weather conditions;

13 unchanged sentences

• risks inherent in doing business internationally;

• changes in foreign laws and legal systems, including as a result of Brexit;

• changes in foreign laws and legal systems;

• our inability to introduce new products effectively or implement our innovation strategies;

18 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.

What changed 10-Q

Item 2. Management’s Discussion and Analysis