What changed in this filing

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Item 7. Management’s Discussion and Analysis

2024-02-27 compared with 2023-02-23 · 65 added, 101 removed, 269 unchanged (38% of the section changed)

8 unchanged sentences

In general, we operate in capital-intensive industries and rely on large contracts for a substantial amount of our revenues.

We are currently exploring growth strategies across our segments through strategic investments and acquisitions to expand and complement our existing businesses.

We would expect to fund these opportunities with cash generated from operations or by raising additional capital through debt, equity or some combination thereof.

We operate in two reportable segments:

Government Operations and Commercial Operations.

Our reportable segments reflect changes we made during the first quarter of 2022 to better align our businesses by their government and commercial nature, which reflects the manner in which our operating segment information is reported for purposes of assessing operating performance and allocating resources.

Prior to 2022, we reported three segments:

Nuclear Operations Group, Nuclear Power Group and Nuclear Services Group.

Our Government Operations segment consists of our legacy Nuclear Operations Group and Nuclear Services Group segments with certain research and development activities in the areas of advanced reactors and advanced manufacturing.

Our Commercial Operations segment consists of our legacy Nuclear Power Group segment with certain research and development and commercialization activities in the areas of medical and industrial radioisotopes and radiopharmaceuticals.

Both segments now include research and development and certain commercialization activities associated with new technologies previously reported outside of our reportable segments.

The change in our reportable segments had no impact on our previously reported consolidated financial condition, results of operations or cash flows.

We have applied the change in reportable segments to previously reported historical financial information and related disclosures included in this Report.

We are currently exploring growth strategies across our segments through strategic investments and acquisitions to expand and complement our existing businesses.

We would expect to fund these opportunities with cash generated from operations or by raising additional capital through debt, equity or some combination thereof.

We expect to recognize approximately 51% of the revenue associated with our backlog by the end of 2024, with the remainder to be recognized thereafter.

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We routinely review estimates related to our contracts, and revisions to profitability are reflected in the quarterly and annual earnings we report.

In the years ended December 31, 2022, 2021 and 2020, we recognized net favorable changes in estimates related to long-term contracts that increased operating income by approximately $24.4 million, $26.5 million and $42.8 million, respectively.

The aggregate impact of changes in estimates increased our revenue and operating income as follows:

Year Ended December 31,

2023 2022 2021

(In thousands)

Revenues $ 24,728 $ 26,629 $ 30,719

Operating Income (1)

$ 24,813 $ 24,405 $ 26,540

(1) During the year ended December 31, 2023, our Government Operations segment results were favorably impacted by contract adjustments related to a nuclear operations contract which resulted in an increase in operating income of $22.5 million.

Our Government Operations segment also recognized favorable adjustments totaling $27.9 million as a result of the successful negotiation of change orders related to cost growth that was driven by out-of-scope changes associated with the manufacture of non-nuclear components.

During the year ended December 31, 2022, our Government Operations segment results were negatively affected by contract adjustments for cost growth related to the manufacture of non-nuclear components which resulted in a decrease in operating income of $11.3 million.

During the year ended December 31, 2021, no adjustment to any one contract had a material impact on our consolidated financial statements.

Although we continually strive to improve our ability to estimate our contract costs and profitability, adjustments to overall contract costs due to unforeseen events could be significant in future periods.

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Government contracts.

For the years ended December 31, 2022, 2021 and 2020, our CAS pension costs attributed to U.S.

For the years ended December 31, 2023, 2022 and 2021, our CAS

pension costs attributed to U.S.

Government contracts totaled $13.6 million, $11.7 million and $29.0 million, respectively.

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Government is obligated to pay substantially all the decommissioning costs.

Government Assistance

In response to the COVID-19 pandemic, on March 27, 2020, the U.S.

Government enacted the CARES Act, which among other things, provided employers an option to defer payroll tax payments for a limited period.

As of December 31, 2022, we deferred $10.7 million of payroll taxes, which was subsequently paid in January 2023.

Additionally, on April 11, 2020, the Canadian Government enacted the CEWS under the COVID-19 Economic Response Plan to prevent large layoffs and help employers offset a portion of their employee salaries and wages for a limited period.

During the years ended December 31, 2022, 2021 and 2020, we recognized subsidies under the CEWS as offsets to operating expenses of $0.6 million, $5.4 million and $20.4 million, respectively.

The timeframe for submitting new claims under the CEWS ended in May 2022, and we do not expect to qualify for further assistance under this program.

Results of Operations – Years Ended December 31, 2023, 2022 and 2021

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Total Operating Income $ 383,059 $ 348,571 $ 345,848

This section discusses our 2023 and 2022 results of operations and contains year-to-year comparisons between 2023 and 2022.

Discussions of our 2021 results and year-to-year comparisons between 2022 and 2021 that are not included in this Report can be found in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2022.

Consolidated Results of Operations

Year Ended December 31, 2023 vs.

Consolidated revenues increased 5.1%, or $108.8 million, to $2,232.8 million in the year ended December 31, 2022 compared to $2,124.1 million in 2021, due to increases in our Government Operations and Commercial Operations segments of $83.4 million and $20.3 million, respectively.

Consolidated revenues increased 11.8%, or $263.5 million, to $2,496.3 million in the year ended December 31, 2023 compared to $2,232.8 million in 2022, due to increases in revenues in our Government Operations and Commercial Operations segments of $222.9 million and $39.0 million, respectively.

Consolidated operating income increased $34.5 million to $383.1 million in the year ended December 31, 2023 compared to $348.6 million in 2022.

Operating income in our Government Operations segment increased $7.0 million, and we also experienced lower Unallocated Corporate expenses of $3.6 million.

These increases were partially offset by lower operating income in our Commercial Operations segment of $7.8 million when compared to the prior year.

Year Ended December 31, 2021 vs.

Consolidated revenues increased slightly to $2,124.1 million in the year ended December 31, 2021 compared to $2,123.5 million in 2020, due to an increase in our Commercial Operations segment of $35.8 million which was partially offset by a decrease in revenues in our Government Operations segment of $38.0 million.

Consolidated operating income decreased $12.7 million to $345.8 million in the year ended December 31, 2021 compared to $358.6 million in 2020.

Operating income in our Government Operations and Commercial Operations segments decreased by $15.7 million and $1.7 million, respectively.

These decreases were partially offset by lower Unallocated Corporate expenses of $4.7 million in 2021 when compared to the prior year.

Operating income in our Government Operations and Commercial Operations segments increased $38.2 million and $10.1 million, respectively.

These increases were partially offset by higher Unallocated Corporate expenses of $13.8 million.

Government Operations

Year Ended December 31, Year Ended December 31,

2022 2021 $ Change 2021 2020 $ Change

Year Ended December 31,

2023 2022 $ Change

(In thousands)

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Revenues increased 12.3%, or $222.9 million, to $2,031.3 million in the year ended December 31, 2023 compared to $1,808.5 million in 2022.

The increase was primarily related to continued growth in design and engineering work executed by our advanced technologies business, particularly in the defense and space markets, resulting in revenue growth of $35.4 million.

Increases in volume related to the manufacture of nuclear components for U.S.

Government programs and favorable timing in the procurement of certain long-lead materials combined for an additional increase in revenues of $31.9 million when compared to the prior year.

Revenues related to our uranium conversion and purification services contract and downblending operations also increased by $26.4 million.

These increases were offset by a reduction in volume related to missile tubes totaling $18.6 million.

The increase was driven by higher volume in the manufacture of nuclear components for U.S.

Government programs, resulting in an increase of $100.0 million when compared to the prior year.

Continued growth in design and engineering work executed by our advanced technologies business, particularly in the defense market, resulted in additional revenues of $61.6 million.

We also experienced higher revenues associated with our uranium processing and downblending operations of $58.6 million.

Operating income increased $38.2 million to $374.7 million in the year ended December 31, 2023 compared to $336.5 million in 2022.

The increase was due to the operating income impact of the changes in revenues noted above in addition to an increase in operating income of $16.1 million associated with our joint venture activities, which include the Savannah River Site Integrated Mission Completion Contract that commenced in February 2022.

These increases were partially offset by lower levels of favorable contract adjustments which included an $11.3 million unfavorable adjustment related to the manufacture of non-nuclear components.

Year Ended December 31, 2021 vs.

Revenues decreased 2.2%, or $38.0 million, to $1,725.1 million in the year ended December 31, 2021 compared to $1,763.1 in 2020.

The decrease was primarily related to the timing of the procurement of certain long-lead materials when compared to the prior year.

In addition, we experienced a decrease in revenues related to the divestiture of our U.S.-based commercial nuclear services business during the second quarter of 2020 and lower revenues at our Naval Reactors decommissioning and decontamination project, which totaled $23.9 million.

These decreases were partially offset by additional volume in the manufacture of nuclear components for U.S.

Government programs and additional volume in our naval nuclear fuel and downblending operations.

We also experienced an increase in design and engineering work executed by our advanced technologies business of $11.6 million, particularly in the space and defense markets.

Operating income decreased $15.7 million to $329.5 million in the year ended December 31, 2021 compared to $345.3 million in the year ended December 31, 2020.

The decrease was due to the operating income impact of the changes in revenues noted above as well as lower levels of net favorable contract adjustments recorded in 2021 when compared to the prior year.

These decreases were partially offset by an increase in operating income of $4.5 million associated with our joint venture activities.

The increase was due to the operating income impact of the changes in revenues noted above.

Commercial Operations

Year Ended December 31, Year Ended December 31,

2022 2021 $ Change 2021 2020 $ Change

Year Ended December 31,

2023 2022 $ Change

(In thousands)

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Revenues increased 9.1%, or $39.0 million, to $466.3 million in the year ended December 31, 2023 compared to $427.4 million in 2022.

The increase was primarily related to higher levels of in-plant inspection, maintenance and modification services totaling $32.5 million as well as higher revenues in our nuclear fuel handling and medical radioisotopes businesses, which together totaled $21.0 million.

These increases were partially offset by decreased revenues in our fuel fabrication business of $20.1 million due to the cyclical nature in the timing of the award of commercial nuclear fuel contracts.

Revenues associated with our parts manufacturing business also decreased by $18.8 million when compared to the prior year.

Operating income decreased $7.8 million to $27.4 million in the year ended December 31, 2022 compared to $35.2 million in 2021, due to a $4.8 million decrease in wage subsidies we received under the CEWS to offset the effects of COVID-19 on our Canadian operations in addition to higher levels of unfavorable contract adjustments when compared to the prior year.

These decreases were offset by the operating income impact of the changes in revenues noted above.

Year Ended December 31, 2021 vs.

Revenues increased 9.6%, or $35.8 million, to $407.1 million in the year ended December 31, 2021 compared to $371.3 in 2020.

The increase was primarily related to higher levels of in-plant inspection, maintenance and modification services totaling $26.2 million in addition to increases in revenues related to our nuclear fuel handling capabilities of $13.3 million.

also experienced higher revenues in our fuel fabrication and medical radioisotopes businesses in 2021 when compared to the prior year.

These increases were partially offset by lower activity in our nuclear components business of $19.8 million, primarily associated with a major steam generator design and supply contract.

Operating income decreased $1.7 million to $35.2 million in the year ended December 31, 2021 compared to $36.9 million in 2020, due primarily to a $15.0 million decrease in the amount of wage subsidies we received under the CEWS to offset the effects of COVID-19 on our Canadian operations when compared to the prior year in addition to a $2.3 million increase in the costs associated with the commercialization of our medical radioisotope technology.

These decreases were partially offset by the operating income impact of the changes in revenues noted above as well as a $2.0 million gain resulting from the settlement of contingent consideration associated with the Precision Manufacturing acquisition.

The increase was primarily related to higher levels of in-plant inspection, maintenance, modification and refurbishment services of $24.1 million and an increase in revenues in our medical radioisotopes business of $14.6 million.

We also experienced higher volume in our nuclear components manufacturing and fuel handling businesses.

These increases were partially offset by decreased revenues in our fuel fabrication business.

Operating income increased $10.1 million to $37.5 million in the year ended December 31, 2023 compared to $27.4 million in 2022.

The increase was primarily due to the operating income impact of the changes in revenues noted above in addition to lower restructuring-related expenses when compared to the prior year.

These increases were partially offset by the operating margin impact caused by a shift in our project and product line mix.

In particular, our field services business experienced a considerable increase in volume associated with large scale, long-term construction projects in support of major refurbishment and plant life extension projects in Canada.

Unallocated Corporate

Unallocated corporate expenses decreased $3.6 million to $15.3 million in the year ended December 31, 2022 compared to $18.9 million in 2021, primarily due to a decrease in healthcare costs and lower compensation related expense inclusive of stock-based compensation.

These decreases were partially offset by an increase in restructuring related costs and higher levels of legal and consulting costs associated with due diligence activities when compared to the prior year.

Unallocated corporate expenses decreased $4.7 million to $18.9 million in the year ended December 31, 2021 compared to $23.6 million in 2020, primarily due to a decrease in legal and consulting costs associated with due diligence activities in addition to a $2.6 million reserve related to a franchise tax audit of years prior to 2016, which was recorded in the year ended December 31, 2020.

Unallocated Corporate expenses increased $13.8 million to $29.2 million in the year ended December 31, 2023 compared to $15.3 million in 2022.

The increase was primarily due to increases in healthcare costs totaling $8.7 million in addition to higher compensation related expenses.

During 2023, we undertook several initiatives to transform our current information technology infrastructure which resulted in an increase in expense of $2.1 million.

These increases were partially offset by a decrease in legal and consulting costs associated with due diligence activities when compared to the prior year.

Other Income (Expense)

During the year ended December 31, 2022, other income (expense) decreased $83.2 million to a loss of $33.3 million compared to a gain of $49.9 million in 2021.

A component of other income (expense) is net periodic benefit cost, which includes mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans.

Net periodic benefit cost resulted in a decrease to other income of $88.9 million in 2022 when compared to the prior year, caused by increased losses related to mark to market adjustments totaling $86.2 million.

This decrease was offset by an early redemption premium of $10.8 million associated with the redemption of the Senior Notes due 2026, as defined below, which occurred in the third quarter of 2021.

During the year ended December 31, 2021, other income (expense) increased $46.2 million to a gain of $49.9 million compared to a gain of $3.6 million in 2020.

A component of other income (expense) is net periodic benefit cost inclusive of mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans.

Net periodic benefit cost resulted in an increase to other income of $61.3 million in 2021 when compared to the prior year, caused by increased gains related to mark to market adjustments totaling $39.6 million.

This increase was offset by an early redemption premium of $10.8 million and the write-off of deferred debt issuance costs totaling $4.2 million associated with the redemption of the Senior Notes due 2026, as defined below.

During the year ended December 31, 2023, other income (expense) decreased $27.5 million to a loss of $61.7 million compared to a loss of $34.2 million in 2022.

Included in other income (expense) are components of net periodic benefit cost, which include mark to market adjustments due to our immediate recognition of net actuarial gains (losses) for our pension and postretirement benefit plans which changed to a loss of $20.9 million during the year ended December 31, 2023 compared to a gain of $4.0 million for the year ended December 31, 2022.

This was caused by a decrease in pension income of $40.6 million which was partially offset by a decrease in losses related to mark to market adjustments totaling $15.8 million.

In addition, we experienced an increase in interest expense of $10.6 million in 2023 when compared to the prior year due primarily to an increase in the weighted-average interest rate on outstanding borrowings under our Credit Facility, as defined below.

Provision for Income Taxes

Year Ended December 31, Year Ended December 31,

2022 2021 $ Change 2021 2020 $ Change

Year Ended December 31,

2023 2022 $ Change

(In thousands)

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Effective Tax Rate

24.1% 22.6% 22.6% 22.9%

For the year ended December 31, 2022, our provision for income taxes decreased $13.7 million to $75.8 million, while income before provision for income taxes decreased $81.3 million to $314.4 million when compared to the prior year.

Our effective tax rate was 24.1% for the year ended December 31, 2022 compared to 22.6% for the year ended December 31, 2021.

For the year ended December 31, 2023, our provision for income taxes decreased $0.7 million to $75.1 million, while income before provision for income taxes increased $7.0 million to $321.4 million when compared to the prior year.

Our effective tax rate was 23.4% for the year ended December 31, 2023 compared to 24.1% for the year ended December 31, 2022.

Our effective tax rates for the years ended December 31, 2023 and 2022 were higher than the U.S.

income tax rate of 21% primarily due to state income taxes within the U.S.

corporate income tax rate of 21% primarily due to state income taxes within the U.S.

and the unfavorable rate differential associated with our Canadian earnings.

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Liquidity and Capital Resources

Our overall liquidity position, which we generally define as our unrestricted cash and cash equivalents plus amounts available for borrowings under our credit facility, increased by approximately $185.1 million to $532.7 million at December 31, 2022 compared to $347.7 million at December 31, 2021, primarily attributable to the borrowing of the Term Loan, as defined below, the proceeds from which were used to repay borrowings under our Revolving Credit Facility, as defined below.

Our overall liquidity position, which we generally define as our unrestricted cash and cash equivalents plus amounts available for borrowings under our credit facility, increased by approximately $116.3 million to $649.1 million at December 31, 2023 compared to $532.7 million at December 31, 2022, primarily attributable to improvements in operating cash flows which were used, in part, to repay borrowings under our Revolving Credit Facility, as defined below.

We experienced net cash generated from operations in each of the years ended December 31, 2023, 2022 and 2021.

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The maximum permitted leverage ratio is 4.00 to 1.00, which may be increased to 4.50 to 1.00 for up to four consecutive fiscal quarters after a material acquisition.

The minimum consolidated

interest coverage ratio is 3.00 to 1.00.

The minimum consolidated interest coverage ratio is 3.00 to 1.00.

In addition, the Credit Facility contains various restrictive covenants, including with respect to debt, liens, investments, mergers, acquisitions, dividends, equity repurchases and asset sales.

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The applicable margin for loans, the commitment fee and the letter of credit fees set forth above will vary quarterly based on our consolidated total net leverage ratio.

The margin for Term SOFR and base rate loans was 1.50% and 0.50%, respectively, the letter of credit fee for financial letters of credit and performance letters of credit was 1.50% and 0.90%, respectively, and the commitment fee for the unused portion of the Revolving Credit Facility was 0.20% from the closing date through the date of our delivery of the compliance certificate for the fiscal quarter ended December 31, 2022.

Based on the total net leverage ratio applicable at December 31, 2023, the margin for Term SOFR and base rate loans was 1.50% and 0.50%, respectively, the letter of credit fee for financial letters of credit and performance letters of credit was 1.50% and 0.90%, respectively, and the commitment fee for the unused portion of the Revolving Credit Facility was 0.20%.

As of December 31, 2023, borrowings under our Term Loan totaled $243.8 million, borrowings and letters of credit issued under the Revolving Credit Facility totaled $175.0 million and $1.7 million, respectively, and we had $573.3 million available under the Revolving Credit Facility for borrowings and to meet letter of credit requirements.

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The Credit Facility generally includes customary events of default for a secured credit facility.

Under the Credit Facility, (1) if an event of default relating to bankruptcy or other insolvency events occurs with respect to the Company, all related obligations will immediately become due and payable;

Under the Credit Facility, (1) if an event of default relating to bankruptcy or other insolvency events occur with respect to the Company, all related obligations will immediately become due and payable;

(2) if any other event of default exists, the lenders will be permitted to accelerate the maturity of the related obligations outstanding;

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We may redeem the Senior Notes due 2028, in whole or in part, at any time on or after June 30, 2023 at a redemption price equal to (i) 102.063% of the principal amount to be redeemed if the redemption occurs during the 12-month period beginning on June 30, 2023, (ii) 101.031% of the principal amount to be redeemed if the redemption occurs during the 12-month period beginning on June 30, 2024 and (iii) 100.0% of the principal amount to be redeemed if the redemption occurs on or after June 30, 2025, in each case plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

At any time prior to June 30, 2023, we may also redeem up to 40.0% of the Senior Notes due 2028 with net cash proceeds of certain equity offerings at a redemption price equal to 104.125% of the principal amount of the Senior Notes due 2028 to be redeemed, plus

accrued and unpaid interest, if any, to, but excluding, the redemption date.

In addition, at any time prior to June 30, 2023, we may redeem the Senior Notes due 2028, in whole or in part, at a redemption price equal to 100.0% of the principal amount of the Senior Notes due 2028 to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date plus an applicable "make-whole" premium.

The 2020 Indenture contains customary events of default, including, among other things, payment default, failure to comply with covenants or agreements contained in the 2020 Indenture or the Senior Notes due 2028 and certain provisions related to bankruptcy events.

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Similarly, we have provided letters of credit to governmental agencies and contractual counterparties to support regulatory and contractual obligations for certain decommissioning responsibilities, projects and legal matters.

We utilize our Revolving Credit Facility and a bilateral letter of credit facility to support such obligations, but the issuance of letters of credit under our bilateral letter of credit facility is at the issuer’s discretion, and our bilateral facility generally permits the issuer, in its sole discretion, to demand collateral if the issuer does not otherwise have the benefit of the collateral under our Credit Facility.

We utilize our Revolving Credit Facility and a bilateral letter of credit facility to support such obligations, but the issuance of letters of credit under our bilateral letter of credit facility is at the issuer’s discretion, and our bilateral letter of credit facility generally permits the issuer, in its sole discretion, to demand collateral if the issuer does not otherwise have the benefit of the collateral under our Credit Facility.

Although there can be no assurance that we will maintain our bilateral letter of credit capacity, we believe our current capacity, together with capacity under our Revolving Credit Facility, is adequate to support our existing requirements for the next 12 months.

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Cash, Cash Equivalents, Restricted Cash and Investments

In the aggregate, our cash and cash equivalents, restricted cash and cash equivalents and investments decreased by $0.3 million to $52.9 million at December 31, 2022 from $53.1 million at December 31, 2021, primarily due to the items discussed below.

In the aggregate, our cash and cash equivalents, restricted cash and cash equivalents and investments increased by $38.2 million to $91.1 million at December 31, 2023 from $52.9 million at December 31, 2022, primarily due to the items discussed below.

Our domestic and foreign cash and cash equivalents, restricted cash and cash equivalents and investments as of December 31, 2023 and 2022 were as follows:

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Total $ 91,111 $ 52,891

Our working capital increased by $89.6 million to $403.8 million at December 31, 2022 from $314.1 million at December 31, 2021, primarily attributable to the timing of project cash flows and vendor payments.

Our net cash provided by operating activities decreased by $141.3 million to $244.7 million in the year ended December 31, 2022, compared to $386.0 million in the year ended December 31, 2021.

The decrease in cash provided by operating activities was primarily attributable to the changes in working capital discussed above as well as an $88.7 million customer payment delayed until the first quarter of 2021, which was originally expected in 2020.

Our working capital increased by $39.0 million to $442.8 million at December 31, 2023 from $403.8 million at December 31, 2022, primarily attributable to increases in cash and cash equivalents resulting from improved billing and collection cycles as well as the receipt of progress payments which were partially offset by the timing of accounts payable.

Our net cash provided by operating activities increased by $119.0 million to $363.7 million in the year ended December 31, 2023, compared to $244.7 million in the year ended December 31, 2022.

The increase in cash provided by operating activities was primarily attributable to the timing of project cash flows.

Our net cash used in investing activities decreased by $100.6 million to $155.6 million in the year ended December 31, 2023, compared to $256.2 million in the year ended December 31, 2022.

The decrease in cash used in investing activities was primarily attributable to a decrease in purchases of property, plant and equipment of $112.7 million, which was partially offset by the $47.3 million acquisition of Dynamic and Cunico as well as an $11.5 million increase in investments in equity method investees during the year ended December 31, 2022.

Our net cash provided by financing activities increased by $104.1 million to $14.0 million in the year ended December 31, 2022, compared to cash used in financing activities of $90.1 million in the year ended December 31, 2021.

The increase in net cash provided by financing activities was primarily attributable to a reduction in repurchases of common stock of $205.8 million when compared to the prior year and the repayment of bank overdrafts of $88.7 million in 2021.

This increase was partially offset by a reduction in net borrowings of long-term debt of $225.0 million when compared to the prior year.

At December 31, 2022, we had short-term and long-term investments with a fair value of $11.9 million.

Our investment portfolio consists primarily of U.S.

Government securities, corporate bonds and mutual funds.

The decrease in cash used in investing activities was primarily attributable to a decrease in purchases of property, plant and equipment of $47.0 million and the $46.7 million acquisition of Dynamic and Cunico in the prior year.

In addition, we experienced an $11.5 million decrease in investments in equity method investees.

Our net cash used in financing activities increased by $183.3 million to $169.4 million in the year ended December 31, 2023, compared to cash provided by financing activities of $14.0 million in the year ended December 31, 2022.

The increase in cash used in financing activities was primarily attributable to a reduction in net borrowings of long-term debt of $181.3 million which was partially offset by a reduction in repurchases of common stock of $20.0 million.

At December 31, 2023, we had long-term investments with a fair value of $9.5 million.

Our investment portfolio consists primarily of corporate bonds and mutual funds.

Cash Requirements

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Government and the commercialization of our medical radioisotope technology in our Commercial Operations segment.

We expect these heightened spending levels to decline as these capital expansion projects near completion.

We expect these heightened spending levels to decline as these capital expansion projects are largely complete.

During the year ended December 31, 2023, we paid $85.0 million in dividends to holders of our common stock.

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In April 2021, our Board of Directors authorized us to repurchase an indeterminate number of shares of our common stock up to an aggregate market value of $500 million.

During the year ended December 31, 2022, we repurchased $20.0 million in shares of our common stock under this and prior share repurchase authorizations.

As of December 31, 2023, the total remaining share repurchase authorization was $397.6 million.

See Item 5 of this Report for additional share repurchase information.

We expect cash requirements totaling approximately $5.4 million for contributions to our pension plans in 2023.

In addition, we anticipate cash requirements totaling approximately $1.4 million for contributions to our other postretirement benefit plans in 2023.

We expect cash requirements totaling approximately $4.4 million and $1.2 million for contributions to our pension plans and other postretirement benefit plans, respectively, in 2024.

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-K

Item 7. Management’s Discussion and Analysis