1 unchanged sentence
THE EASTERN COMPANY AND SUBSIDIARIES
−Removed: CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
+Added: CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: $ 206,468,838
−Removed: $ 210,191,448
+Added: March 30, 2024
+Added: April 1, 2023
Cost of products sold
1 unchanged sentence
( 56,997,668 )
−Removed: ( 159,447,930 )
−Removed: ( 163,047,360 )
Product development expense
1 unchanged sentence
( 1,401,199 )
−Removed: ( 4,257,468 )
−Removed: ( 3,168,333 )
−Removed: Selling general and administrative expenses
−Removed: ( 9,700,342 )
−Removed: ( 10,121,683 )
+Added: Selling and administrative expenses
( 11,498,958 )
2 unchanged sentences
Interest expense
−Removed: ( 1,067,779 )
−Removed: ( 2,574,890 )
−Removed: ( 1,583,894 )
−Removed: Other (expense) income
−Removed: Income from continuing operations before income taxes
−Removed: Income tax expense
−Removed: ( 1,423,363 )
−Removed: ( 1,678,698 )
−Removed: ( 3,498,365 )
−Removed: Net income from continuing operations
−Removed: Discontinued Operations (see Note B)
−Removed: Gain from operations of discontinued operations
+Added: Other income (expense)
+Added: Income before income taxes
Income tax expense
−Removed: Gain from discontinued operations
−Removed: Earnings per share from continuing operations:
−Removed: Earnings per share from discontinued operations:
−Removed: Total earnings per share:
+Added: Earnings per share:
Cash dividends per share:
3 unchanged sentences
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: Other comprehensive (loss) income:
+Added: March 30, 2024
+Added: April 1, 2023
+Added: Other comprehensive income:
Change in foreign currency translation
−Removed: ( 1,387,274 )
+Added: Change in fair value of foreign currency swap, net of tax cost (benefit) of:
2024 - $96,724 ;
−Removed: Change in fair value of interest rate swap, net of tax cost of:
−Removed: 2023 - $0 and $(274,957) respectively;
−Removed: 2022 - $163,533 and $590,827 respectively
2023 - $(87,691)
Change in pension and postretirement benefit costs, net of taxes of:
−Removed: 2023 - $74,360 and $223,079 respectively;
−Removed: 2022 - $92,235 and $276,705 respectively
−Removed: Total other comprehensive income (loss)
+Added: 2024 - $71,355 ;
+Added: 2023 - $74,360
+Added: Total other comprehensive income
Comprehensive income
2 unchanged sentences
CONDENSED CONSOLIDATED BALANCE SHEETS
−Removed: September 30, 2023
+Added: March 30, 2024
December 30, 2023
1 unchanged sentence
Cash and cash equivalents
+Added: Marketable Securities
Accounts receivable, less allowances:
19 unchanged sentences
CONDENSED CONSOLIDATED BALANCE SHEETS
−Removed: September 30, 2023
+Added: March 30, 2024
December 30, 2023
24 unchanged sentences
50,000,000 shares
−Removed: 9,086,096 shares in 2023 and 9,056,421 shares in 2022
−Removed: 6,238,413 shares in 2023 and 6,221,976 shares in 2022
+Added: 9,118,031 shares as of 2024 and 9,091,815 shares as of 2023
+Added: 6,233,510 shares as of 2024 and 6,217,370 shares as of 2023
Treasury Stock:
−Removed: 2,847,683 shares in 2023 and 2,834,445 shares in 2022
+Added: 2,884,521 shares as of 2024 and 2,874,445 shares as of 2023
( 23,515,267 )
4 unchanged sentences
( 1,023,599 )
−Removed: ( 1,140,978 )
−Removed: Unrealized gain on interest rate swap, net of tax
+Added: Unrealized gain on foreign currency swap, net of tax
Unrecognized net pension and postretirement benefit costs, net of tax
11 unchanged sentences
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: Operating Activities
−Removed: gain from discontinued operations
−Removed: Income from continuing operations
−Removed: Adjustments to reconcile net income to net cash provided by (used in)
+Added: Three Months Ended
+Added: March 30, 2024
+Added: April 1, 2023
Operating Activities
+Added: Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
+Added: Reduction in carrying amount of ROU assets
Unrecognized pension and postretirement benefits
−Removed: Loss (Gain) on sale of equipment and other assets
+Added: Loss on sale of equipment and other assets
Provision for doubtful accounts
−Removed: Stock compensation expense
+Added: Stock compensation expense (benefit)
Changes in operating assets and liabilities:
3 unchanged sentences
Prepaid expenses and other
−Removed: ( 1,082,483 )
Accounts payable
+Added: ( 1,031,704 )
Accrued compensation
+Added: ( 1,000,332 )
+Added: ( 1,104,186 )
+Added: Change in operating lease liability
Other accrued expenses
( 1,248,705 )
−Removed: Net cash provided by (used in) operating activities
+Added: Net cash provided by operating activities
Investing Activities
−Removed: Business Acquisition
−Removed: Issuance of Notes Receivable
+Added: Marketable securities
Payments received from notes receivable
6 unchanged sentences
Financing Activities
+Added: Payments on short term borrowings (revolver)
Principal payments on long-term debt
( 4,858,000 )
−Removed: ( 5,688,866 )
−Removed: Principal payments on short-term borrowings (revolver)
−Removed: ( 1,000,000 )
−Removed: Proceeds from short term borrowings (revolver)
−Removed: Proceeds from new long-term debt financing
Financing leases, net
Purchase common stock for treasury
−Removed: ( 1,637,072 )
Dividends paid
−Removed: ( 2,069,043 )
−Removed: ( 2,054,875 )
Net cash used in financing activities
( 1,741,568 )
−Removed: Discontinued Operations
−Removed: Cash used in operating activities
−Removed: Cash used in discontinued operations
+Added: ( 5,087,288 )
Effect of exchange rate changes on cash
6 unchanged sentences
Lease liability
−Removed: ( 4,484,838 )
−Removed: ( 1,608,530 )
−Removed: ¹ includes cash from assets held for sale of $0.4 million as of October 1, 2022
See accompanying notes
−Removed: THE EASTERN COMPANY
+Added: THE EASTERN COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: September 30, 2023
+Added: March 30, 2024
Note A – Basis of Presentation
9 unchanged sentences
In a 52-week fiscal year, each quarter has 13 weeks.
−Removed: References to the third quarter of 2022, the third fiscal quarter of 2022, the third quarter of fiscal 2022 or the three months ended October 1, 2022, mean the period from July 3, 2022 to October 1, 2022.
−Removed: References to the third quarter of 2023, the third fiscal quarter of 2023, the third fiscal quarter of 2023 or the three months ended September 30, 2023, mean the 13-week period from July 2, 2023 to September 30, 2023.
−Removed: References to the first nine months of 2022, the first nine months of fiscal 2022 or the nine months ended October 1, 2022 mean the period from January 2, 2022 to October 1, 2022.
−Removed: References to the first nine months of 2023, the first nine months of fiscal 2023 or the nine months ended September 30, 2023 mean the period from January 1, 2023 to September 30, 2023.
+Added: References to the first quarter of 2023, the first fiscal quarter of 2023, the first quarter of fiscal 2023 or the three months ended April 1, 2023, mean the period from January 1, 2023 to April 1, 2023.
+Added: References to the first quarter of 2024, the first fiscal quarter of 2024, the first fiscal quarter of 2024 or the three months ended March 30, 2024, mean the 13-week period from December 31, 2023 to March 30, 2024.
Certain amounts in the 2023 financial statements have been reclassified to conform with the 2024 presentation with no impact or change to previously reported net income or shareholders’ equity.
−Removed: Note B – Discontinued Operations
−Removed: In the second quarter of 2021, the Company determined that the companies included in our former Diversified Products segment no longer fit with our long-term strategy and the Company initiated the process of selling the companies within the Diversified Products segment, which process was completed with the sale of the Company’s Argo EMS business (“Argo”) on October 19, 2022.
−Removed: Argo supplied printed circuit boards and other electronic assemblies to original equipment manufacturers in various industries, including measurement systems, semiconductor equipment manufacturing, and industrial control, medical, and military products.
−Removed: We believe that the sale of the Diversified Products segment has allowed management to focus on our core capabilities and offerings.
−Removed: The former Diversified Products segment met the criteria to be held for sale and furthermore, we determined that the assets held for sale qualified for discontinued operations.
−Removed: As such, the financial results of the Diversified Products segment are reflected in our unaudited condensed consolidated statements of income as discontinued operations for the prior periods presented.
−Removed: The results of the former Diversified Products segment are not reflected in the unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2023 because dispositions of the businesses that comprised that segment were completed prior to the start of the period.
−Removed: Summarized Financial Information of Discontinued Operations
−Removed: The following table represents income from discontinued operations, net of tax:
−Removed: Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: Cost of products sold
−Removed: ( 1,656,694 )
−Removed: ( 4,943,751 )
−Removed: Selling, general and administrative expenses
−Removed: Operating income
−Removed: Interest expense
−Removed: Gain from discontinued operations before income taxes
−Removed: Income tax expense
−Removed: Income from discontinued operations, net of tax
−Removed: Note C – Earnings Per Share
+Added: Note B – Earnings Per Share
The denominators used to calculate earnings per share are as follows:
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: September 30, 2023
−Removed: October 1, 2022
+Added: March 30, 2024
+Added: April 1, 2023
Weighted average shares outstanding
2 unchanged sentences
Denominator for diluted earnings per share
+Added: Note C – Fair Value of Instruments
+Added: Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
+Added: The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value.
+Added: The fair value hierarchy has three levels of inputs that may be used to measure fair value:
+Added: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
+Added: Quoted prices in markets that are not active;
+Added: or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.
+Added: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable.
+Added: The Company’s financial instruments are primarily investments in marketable securities (Level 1) and pension assets, see Note L, Retirement Benefit Plans .
+Added: The carrying amounts of other financial instruments (cash and cash equivalents, marketable securities, accounts receivable, accounts payable and debt) as of March 30, 2024 and December 30, 2023, approximate fair value because of their short-term nature and market-based interest rates.
Note D – Inventories
−Removed: Inventories from continuing operations consist of the following components:
−Removed: September 30, 2023
+Added: Inventories consist of the following components:
+Added: March 30, 2024
December 30, 2023
4 unchanged sentences
Note E - Goodwill
−Removed: The aggregate carrying amount of goodwill from continuing operations is approximately $ 70.8 million as of September 30, 2023 and includes the write-off of approximately $ 0.5 million of goodwill associated with the closure of Associated Toolmakers, Ltd.
−Removed: in the second quarter of 2023.
−Removed: Additionally, the Company recorded approximately $ 0.5 million of goodwill associated with the acquisition of Sureflex, Inc.
−Removed: in the second quarter of 2023.
−Removed: See Note O – Business Acquisition for further details.
−Removed: No impairment was recognized in the third quarter of 2023.
+Added: The aggregate carrying amount of goodwill is approximately $ 70.7 million as of March 30, 2024.
+Added: No impairment was recognized in the first quarter of 2024.
The Company evaluates its reporting units for impairment annually in December, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount.
17 unchanged sentences
All options to extend, when it is reasonably certain the option will be exercised, have been included in the calculation of the ROU asset and lease liability.
−Removed: Currently, the Company has twenty-one operating leases with a lease liability of $ 15.8 million and four finance leases with a lease liability of $ 0.9 million as of September 30, 2023.
+Added: Currently, the Company has twenty-two operating leases with a lease liability of $ 16.5 million and two finance leases with a lease liability of $ 0.9 million as of March 30, 2024.
The terms and conditions of the leases are determined by the individual agreements.
2 unchanged sentences
There are no leases that have not yet commenced that could create significant rights and obligations for the Company.
−Removed: Approximate total minimum lease payments for each of the next five fiscal years is estimated to be as follows:
−Removed: remainder of 2023 - $ 1.0 million;
−Removed: 2024 - $ 3.6 million;
−Removed: 2025 - $ 2.4 million;
−Removed: 2026 - $ 1.8 million;
−Removed: 2027 - $ 1.5 million;
−Removed: and $ 6.5 million thereafter.
−Removed: The weighted average remaining lease term is 7.3 years.
−Removed: The implicit interest rate used was 5.0 % to 8.25 %.
+Added: The future payments (in millions) due under non-cancelable operating and finance leases as of March 30, 2024 are as follows:
+Added: 2027 and thereafter
+Added: Less effects of discounting
+Added: Lease liabilities recognized
+Added: As of March 30, 2024, the weighted average lease term for all operating and finance leases is 7.0 and 5.8 years, respectively.
+Added: The weighted average discount rate associated with operating and finance leases was 6.3 % and 6.4 %, respectively.
Note G - Debt
7 unchanged sentences
Currently, the commitment fee is 0.30 %.
−Removed: As of September 30, 2023, the Company has not borrowed any funds on the revolving commitment portion of the credit facility.
+Added: The Company has no borrowings outstanding under the revolving commitment portion of the credit facility as of March 30, 2024.
The term loan bears interest at a variable rate based on the term secured overnight financing rate (“SOFR”), plus an adjustment of ten basis points, plus an applicable margin of 1.875% to 2.625%, depending on the Company’s senior net leverage ratio.
3 unchanged sentences
In addition, the Company is required to maintain a fixed charge coverage ratio to be not less than 1.25 to 1.
−Removed: The Company was in compliance with all its covenants under the Credit Agreement on September 30, 2023, and through the date of filing this Form 10-Q.
+Added: The Company was in compliance with all its covenants under the Credit Agreement on March 30, 2024, and through the date of filing this Form 10-Q.
Note H - Stock Options and Awards
5 unchanged sentences
Under the 2020 Plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Board.
−Removed: During the first nine months of fiscal 2023 and 2022, the Company granted stock awards with respect to 79,500 and 43,300 shares of Company common stock respectively, that were subject to the meeting of performance measurements or time based.
−Removed: For the first nine months of fiscal years 2023 and 2022, the Company used fair market value to determine the associated expense with stock awards.
+Added: The Company did not grant any stock awards during the first three months of fiscal 2024 and fiscal 2023.
+Added: For the first three months of fiscal years 2024 and 2023, the Company used fair market value to determine the associated expense with stock awards.
The 2020 Plan also permits the issuance of Stock Appreciation Rights (“SARs”).
The SARs are in the form of an option with a cashless exercise price equal to the difference between the fair value of the Company’s common stock at the date of grant and the fair value as of the exercise date resulting in the issuance of the Company’s common stock.
−Removed: During the first nine months of fiscal 2023 and 2022 the Company did not issue any SARs.
−Removed: Stock-based compensation (income) expense, including forfeitures, in connection with SARs and stock awards previously granted to employees was approximately $ 5,000 and $ 131,000 in the third quarter of 2023 and the third quarter of 2022, respectively, and was approximately $( 158,000 ) and $ 381,000 in the first nine months of fiscal years 2023 and 2022, respectively.
−Removed: As of September 30, 2023, there were 889,992 shares of Company common stock reserved and available for future grant under the 2020 Plan.
+Added: The Company did not issue any SARs during the first three months of fiscal 2024 and 2023.
+Added: Stock-based compensation expense (income), including forfeitures, in connection with SARs and stock awards previously granted to employees was approximately $ 434,000 and $( 184,000 ) in the first quarter of 2024 and the first quarter of 2023, respectively.
+Added: As of March 30, 2024, there were 879,924 shares of Company common stock reserved and available for future grant under the 2020 Plan.
The following tables set forth the outstanding SARs for the period specified:
−Removed: Nine Months Ended
−Removed: September 30, 2023
+Added: Three Months Ended
+Added: March 30, 2024
December 30, 2023
−Removed: Weighted Average Exercise Price
−Removed: Weighted Average Exercise Price
Outstanding at beginning of period
2 unchanged sentences
Range of Exercise Prices
−Removed: Outstanding as of September 30, 2023
−Removed: Weighted Average Remaining Contractual Life
−Removed: Weighted Average Exercise Price
−Removed: Exercisable as of September 30, 2023
−Removed: Weighted Average Remaining Contractual Life
+Added: Outstanding as
Weighted Average Exercise Price
−Removed: $ 19.44 - $ 26.30
The following tables set forth the outstanding stock awards for the period specified:
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: December 31, 2022
+Added: Three Months Ended
Outstanding at beginning of period
Outstanding at end of period
−Removed: As of September 30, 2023, outstanding SARs and stock awards had an intrinsic value of $ 1,562,715 .
+Added: As of March 30, 2024, outstanding SARs and stock awards had an intrinsic value of $ 2,245,274 .
Note I – Share Repurchase Program
2 unchanged sentences
Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.
−Removed: Below is a summary of the Company’s shares repurchased during the third quarter of 2023 under the prior share repurchase program.
−Removed: Total Number of Shares Purchased
−Removed: Average Price Paid Per Share
−Removed: Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
−Removed: Maximum Number of Shares that may yet be Purchased Under the Plans or Programs
−Removed: Balance as of July 1, 2023
−Removed: July 2, 2023 – September 30, 2023
−Removed: Balance as of September 30, 2023
−Removed: Below is a summary of the Company’s shares repurchased during the third quarter of 2023 under the new share repurchase program.
−Removed: Total Number of Shares Purchased
−Removed: Average Price Paid Per Share
−Removed: Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
−Removed: Maximum Number of Shares that may yet be Purchased Under the Plans or Programs
−Removed: Balance as of July 1, 2023
−Removed: July 2, 2023 – September 30, 2023
−Removed: Balance as of September 30, 2023
+Added: Below is a summary of the Company’s shares repurchased during the first quarter of 2024 under the new share repurchase program.
+Added: Balance as of December 30, 2023
+Added: December 31, 2024 – March 30, 2024
+Added: Balance as of March 30, 2024
Note J – Revenue Recognition
14 unchanged sentences
income tax examinations by foreign tax authorities for years prior to 2017.
−Removed: The total amount of unrecognized tax benefits could increase or decrease within the next 12 months for several reasons, including the closure of federal, state, and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB ASC Topic 740, “Income Taxes.” There have been no significant changes to the value of unrecognized tax benefits during the nine months ended September 30, 2023.
+Added: The total amount of unrecognized tax benefits could increase or decrease within the next 12 months for several reasons, including the closure of federal, state, and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB ASC Topic 740, “Income Taxes.” There have been no significant changes to the value of unrecognized tax benefits during the three months ended March 30, 2024.
The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months.
1 unchanged sentence
The Company has four non-contributory defined benefit pension plans covering most U.S.
−Removed: Three of these pension plans are frozen and participants in these three plans have not accrued benefits since the date on which these plans were frozen.
−Removed: A fourth pension plan does not permit new participants but existing participants in this fourth pension plan continue to accrue benefits.
+Added: All of these pension plans are frozen and participants in these plans have not accrued benefits since the date on which these plans were frozen.
Plan benefits are generally based upon age at retirement, years of service and, for the plan covering salaried employees, the level of compensation.
1 unchanged sentence
The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.
−Removed: Significant disclosures relating to these benefit plans for the first three months and first nine months 2023 and 2022 are as follows:
+Added: Significant disclosures relating to these benefit plans for the first quarter of fiscal years 2024 and 2023 are as follows:
Pension Benefits
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: September 30, 2023
−Removed: October 1, 2022
+Added: March 30, 2024
+Added: April 1, 2023
Interest cost
2 unchanged sentences
( 1,049,016 )
−Removed: ( 3,147,046 )
−Removed: ( 4,381,980 )
−Removed: Amortization of prior service cost
Amortization of the net loss
−Removed: Net periodic benefit cost (benefit)
−Removed: $ ( 176,088 )
−Removed: $ ( 528,267 )
+Added: Net periodic benefit cost
Other Postretirement Benefits
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: September 30, 2023
−Removed: October 1, 2022
+Added: March 30, 2024
+Added: April 1, 2023
Interest cost
2 unchanged sentences
Amortization of the net loss
−Removed: Net periodic benefit cost
+Added: Net periodic benefit (gain) cost
The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations.
−Removed: In fiscal year 2023, the Company expects to contribute approximately $ 1,300,000 into its pension plans and approximately $ 50,000 into its postretirement plan.
−Removed: As of September 30, 2023, the Company has contributed $ 800,000 to its pension plans, has contributed $ 32,000 to its postretirement plan, and expects to make the remaining contributions as required during the remainder of the fiscal year.
+Added: In fiscal year 2024, the Company expects to make cash contributions to its qualified pension plans of approximately $ 2,100,000 and approximately $ 50,000 into its other postretirement plan.
+Added: As of March 30, 2024, the Company has contributed $ 450,000 to its pension plans and $ 7,000 to its postretirement plan and expects to make the remaining contributions as required during the remainder of the fiscal year.
The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) covering substantially all U.S.
2 unchanged sentences
The 401(k) Plan provides for contributions by the Company at its discretion.
−Removed: The Company made contributions to the plan as follows:
+Added: The Company made contributions to the 401(k) Plan as follows:
Three Months Ended
−Removed: Nine Months Ended
−Removed: September 30, 2023
−Removed: October 1, 2022
−Removed: September 30, 2023
−Removed: October 1, 2022
+Added: March 30, 2024
+Added: April 1, 2023
Regular matching contribution
2 unchanged sentences
Total contributions for the period
−Removed: The non-discretionary contribution of $ 328,953 made in the nine months ended September 30, 2023, was accrued for, and expensed in the prior fiscal year.
+Added: The non-discretionary contribution of $ 328,953 made in the three months ended April 1, 2023, was accrued for, and expensed in the prior fiscal year.
Effective January 1, 2023, the non-discretionary contributions are being contributed on a weekly basis.
Note M - Recent Accounting Pronouncements
+Added: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
+Added: 2023-07, Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures, which amends the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
+Added: This standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.
+Added: We do not expect this new standard to have a significant impact on our disclosures.
+Added: In December 2023, the FASB issued ASU No.
+Added: 2023-09, Income Taxes (Topic 740), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign and (3) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign.
+Added: The update also requires entities to disclose their income tax payments to various jurisdictions.
+Added: This standard is effective for fiscal years beginning after December 15, 2024.
+Added: We do not expect this new standard to have a significant impact on our disclosures.
The Company has implemented all new accounting pronouncements that are in effect and that could impact its consolidated financial statements and does not believe that there are any other new accounting pronouncements that have been issued, but are not yet effective, that might have a material impact on the consolidated financial statements of the Company.
3 unchanged sentences
The Company has established credit limits for customers and monitors their balances to mitigate the risk of loss.
−Removed: As of September 30, 2023, there was one significant concentration of credit risk with a customer, who had receivables representing 12 % of our net accounts receivable.
+Added: As of March 30, 2024, there was one significant concentration of credit risk with a customer, who had receivables representing 12% of our net accounts receivable.
One single customer represented 12 % of the Company’s net accounts receivable as of December 30, 2023.
4 unchanged sentences
Currency Exchange Rate Risk
−Removed: The Company’s currency exposure is concentrated in the Canadian dollar, Mexican peso, New Taiwan dollar, Chinese RMB, Hong Kong dollar and United Kingdom pound sterling.
+Added: The Company’s currency exposure is concentrated in the Canadian dollar, Mexican peso, New Taiwan dollar, Chinese RMB, and Hong Kong dollar.
Because of the Company’s limited exposure to any single foreign market, any exchange gains or losses have not been material and are not expected to be material in the future.
11 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.