What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-09-16 compared with 2024-09-27 · 218 added, 176 removed, 62 unchanged (86% of the section changed)

2 unchanged sentences

Management expects revenues in fiscal year 2026

to be higher than revenues recognized during fiscal year 2024 and expects net income per share to exceed fiscal 2023 reported results,

however net income per share is anticipated to fall below fiscal 2024 results.

This expectation is driven primarily by orders already

in our backlog that will be shipped in fiscal year 2025 with higher anticipated aggregate costs than the product mix shipped during fiscal

Gross profit on fiscal 2025 shipments will be reduced by the increase in overhead costs incurred specific to the pension withdrawal

obligation recorded in fiscal 2024, explained in greater detail in Financial Statement Note 7.

Pension Expense.

Overhead costs will

be reduced, in future years, from the Company’s withdrawal from the plan, as recurring annual contribution payments to the plan

will no longer be required.

As market factors including competition and product costs impact gross profit margins, management will continue

to evaluate our sales strategy, employment levels, and facility costs.

Ongoing demand in the power electronics industry across

multiple manufacturing sectors continues to create shortages and extended lead times.

In some instances, waiting times for certain components

approach a year or more.

We adequately factor supplier-provided lead times into internal planning schedules and new customer quotations.

to be higher than revenues recognized during fiscal year 2025.

Net income per share is anticipated to fall below fiscal 2025 results driven

primarily by orders already in our backlog that will be shipped in fiscal year 2026 with higher anticipated aggregate costs than the product

mix shipped during fiscal 2025.

As market factors, including competition and product costs impact gross profit margins, management will

continue to evaluate our sales strategy, employment levels, and facility costs.

Ongoing demand in the power electronics industry

across multiple manufacturing sectors continues to create shortages and extended lead times.

In some instances, waiting times for certain

components approach a year or more.

We adequately factor supplier-provided lead times into internal planning schedules and new customer

From time to time, we encounter part obsolescence which requires us to identify an alternate part suitable for use.

We continue to work

with our customers on strategies to mitigate any adverse impact upon our ability to service their requirements.

Factors which may arise

after the placement of the customer’s order may cause us to miss projected delivery dates.

Inflationary costs are expected to continue

but are not expected to have a significant impact on operating income in fiscal year 2025.

to work with our customers on strategies to mitigate any adverse impact upon our ability to service their requirements.

Factors which

may arise after the placement of the customer’s order may cause us to miss projected delivery dates.

Inflationary costs are expected

to continue but are not expected to have a significant impact on operating income in fiscal year 2026.

The labor workforce remains stable.

1 unchanged sentence

Longer time-to-hire

challenges remain for certain positions due to specific skillsets required for those positions and the fact fewer workers, in general,

are seeking employment.

Unemployment rates in the local geographic region trend lower than the national average which has created a competitive

recruiting environment.

Where possible, the Company continues to offer on-the-job training and when necessary continues to recruit personnel

outside the local region.

Combined with supply chain constraints, unforeseen labor disruptions could delay shipments and result in missing

our backlog fulfillment projections and recognizing lower operating income.

challenges remain for certain positions due to specific skillsets required for those positions.

Unemployment rates in the local geographic

region trend lower than the national average which has created a competitive recruiting environment.

Where possible, the Company continues

to offer on-the-job training and when necessary, continues to recruit personnel outside the local region.

Combined with supply chain constraints,

unforeseen labor disruptions could delay shipments and result in missing our backlog fulfillment projections and recognizing lower operating

Successful conversion of engineering program backlog

1 unchanged sentence

It is not uncommon to experience technical

or scheduling delays which arise from time to time as a result of, among other reasons, design complexity, the availability of personnel

with the requisite expertise, the requirements to obtain customer approval at various milestones, and extended delivery lead times on

material required for prototypes.

Cost overruns which may arise from technical and schedule delays and increased raw material costs

could negatively impact the timing of the conversion of backlog into sales, or the profitability of such sales.

Engineering programs in

both the funded and unfunded portions of the current backlog aggregate $10.2 million.

The Company currently expects new orders in fiscal

2025 to be greater than those received in fiscal year 2024.

During fiscal year 2024, the Company received approximately $52.4 million

in new orders.

Included in new order bookings are repeat production orders for multi-year purchases with deliveries expected to extend

for several years.

In addition to the backlog, the Company currently has outstanding opportunities representing in excess of $130

million in the aggregate as of August 31, 2024, for both repeat and new programs.

Included in outstanding opportunities is a large

multi-year purchase from a single customer for several products currently being manufactured by the Company, expected to be formalized

prior to December 31, 2024.

Outstanding opportunities encompass various new and previously manufactured power supplies, transformers,

and subassemblies.

We consider the value of those opportunities we believe are likely to be awarded based on factors which include:

quotation status, communicated award dates, historical ordering, public information on defense programs and program funding, discussion

with customers, and our cost competitiveness.

However, there can be no assurance that the Company will acquire any of the outstanding

opportunities described above, many of which are subject to allocations of the United States defense spending and factors affecting the

defense industry, as well as, the fact many solicitations we receive for the procurement of goods and services takes place by competitive

Our sales strategy includes identifying and obtaining

multiple new engineering design and development contracts in any given fiscal year to ensure optimal utilization of our engineering personnel

in addition to securing follow-on production awards for product previously designed in-house, as well as, build to print opportunities.

The Company targets those programs and opportunities which will generate future longer-term production tails in ensuing years.

to time, we accept work associated with engineering design studies.

While unlikely to result in near-term follow-on orders, this positions

us competitively on future awards and expands our engineering team’s skillset.

or scheduling delays which can arise as a result of, among other reasons, design complexity, availability of personnel with the requisite

expertise, requirements to obtain customer approval at various milestones, and extended delivery lead times on material required for prototypes.

overruns which can be caused from technical and schedule delays and increased raw material costs could negatively impact the timing of

the conversion of backlog into sales, or the profitability of such sales.

Engineering programs in both the funded and unfunded portions

of the current backlog aggregate $13 million.

The Company currently expects new orders in

fiscal year 2026 to be lower than those received in fiscal year 2025.

During fiscal year 2025, the Company received $86.4

million in new orders which included two significant, multi-year contract awards in an aggregate sum of $49.4 million.

addition to the backlog, the Company currently has outstanding opportunities representing approximately $163 million in the

aggregate as of August 31, 2025, for both repeat and new programs.

Outstanding opportunities encompass various new and previously

manufactured power supplies, transformers, and subassemblies.

The stated amount includes only those opportunities that we believe

are likely to be awarded based on factors which include:

quotation status, communicated award dates, historical ordering, public

information on defense programs and program funding, discussion with customers, and our cost competitiveness.

However, there can be

no assurance that the Company will acquire any of the outstanding opportunities described above, many of which are subject to

allocations of the United States defense spending and elements affecting the defense industry.

solicitations we receive for the procurement of goods and services takes place by competitive bidding.

Our sales strategy continues to focus on the

long-standing relationships we have with many of the leading defense prime contractors.

These relations yield growth opportunities

from new product development and additional sales opportunities of existing products to these customers.

The Company targets

programs and opportunities which will generate future longer-term production tails in ensuing years.

From time to time, we accept

work associated with engineering design studies.

While unlikely to result in near-term follow-on orders, this positions us

competitively on future awards and expands our engineering team’s skillset.

Management continues to pursue opportunities with

7 unchanged sentences

equipment and facility upgrades, are not expected to exceed $850,000 for fiscal year 2026.

A majority of these expenditures will be made

to stay competitive in the marketplace and to meet the needs of current contracts.

Expectations are that the working capital

will be required to fund orders, general operations of the business and dividend payments.

Management along with the

Legal Affairs, Strategic Planning, and M&A Committee of the Board of Directors will examine opportunities involving acquisitions

or other strategic options, including buying certain products or product lines, provided that such opportunities demonstrate

synergies with the Company’s existing product base and accretion to earnings.

The Company was awarded $7.4 million in

funding during the second quarter of fiscal year 2023 in support of facility and capital equipment upgrades for testing and

qualification for the United States Navy.

The funding is part of the Navy’s investment to improve and sustain the Surface

Combatant Industrial Base.

The work is being conducted on the Company’s property in Saratoga Springs, NY, with completion

slated for the end of calendar year 2024.

The Company expects to be paid within 30 days after the submission of three milestone

invoices, but will not be paid for expenses incurred in excess of the specified milestone payment limits.

The Company will record

the receipt of milestone payments received as a reduction from the cost of the assets.

As of June 30, 2024 milestone reimbursements

received totaled $4,228,722.

Included in property, plant, and equipment at June 30, 2024 was $965,392 not yet reimbursed under the

funding award.

As of June 30, 2024, the Company anticipates spending the remaining $2.3 million, allowable under the award, during

These upgrades would be in addition to those

that are being funded by grants the Company was awarded.

A majority of these expenditures will be made to stay competitive in the marketplace

and to meet the needs of current contracts.

Expectations are that the working capital will

be required to fund orders, general operations of the business and dividend payments.

Management along with the Legal Affairs, Strategic

Planning, and M&A Committee of the Board of Directors will examine opportunities involving acquisitions or other strategic options,

including buying certain products or product lines, provided that such opportunities demonstrate synergies with the Company’s existing

product base and accretion to earnings.

Results of Operations

1 unchanged sentence

2024 were $43,950,872 and $38,736,319, respectively, an approximate 13.5% increase.

In general, sales fluctuations within product categories will occur during a comparable fiscal period as

the direct result of product mix, influenced by the duration of specific programs and the contractual terms of firm orders placed for

product and services under those programs including contract value, scope of work and contract delivery schedules.

Deliverables within

firm contracts are often subject to delivery schedules which also contributes to sales fluctuations between comparable periods.

in fiscal year 2024 were higher when compared to the prior year primarily from (i) increased shipments on several large multi-year contracts

for transformers and power distribution panels, and (ii) increased shipments on several power supply contracts primarily supporting AESA

radar programs and off-highway vehicle production builds.

These increases were offset, in part, by a decrease in overall build to print

sales which, in several instances, had specific contracts with significantly fewer or no sales in the current reporting period as compared

to the same period last year due to order completion or planned customer delivery schedules.

In general, sales fluctuations within product categories

will occur during a comparable fiscal period as the direct result of product mix, influenced by the duration of specific programs and

the contractual terms of firm orders placed for product and services under those programs including contract value, scope of work and

contract delivery schedules.

Deliverables within firm contracts are often subject to delivery schedules which also contributes to sales

fluctuations between comparable periods.

Sales in fiscal year 2025 were higher when compared to the prior year primarily attributable

to (i) several large multi-year contracts for shipboard transformers and power distribution panels, (ii) power systems for combat vehicles,

and (iii) power systems for aircraft radar and missile platforms.

Additionally, the Company saw increases on build to print sales.

These increases were partially offset by a slight decrease in sales related to our magnetics programs where various contracts had fewer

or no sales in the current reporting period as compared to the same period last year due to order completion or planned customer delivery

Gross profits for the years ended June 30, 2025

and 2024 were $12,684,631 and $10,653,060, respectively.

Gross profit as a percentage of sales was 27.5% and 22.6%, for the same

periods, respectively.

The primary factors in determining the change in gross profit and net income are overall sales levels and product

The gross profits on mature products and build to print contracts are typically higher as compared to products which are still in

the engineering development stage or in early stages of production.

In the case of the latter, the Company can incur what it refers to

as “loss contracts,” primarily on engineering design contracts in which the Company invests with the objective of developing

future product sales.

In any given accounting period, the mix of product shipments between higher margin programs and less mature programs,

and expenditures associated with loss contracts, has a significant impact on gross profit and net income.

The increase in gross profit for the year ended June

30, 2024 when compared to the same period last year resulted primarily from (i) sales levels and general product mix, (ii) higher than

average profit margins on one-time sales to certain customers, and (iii) higher sales on a large follow-on order for power distribution

panels which had fewer sales and higher costs in the prior year related to engineering design efforts.

Moreover, the gross profit in fiscal

year 2023 had been negatively impacted by significant unanticipated costs incurred on several fixed-priced engineering design contracts

and a specific build to print contract, all for power supplies, due to unforeseen complexities of the designs.

The improvement in

the gross profit in fiscal year 2024 was offset, in part, by increased costs incurred on a recurring production job and a new engineering

development job.

Finally, gross profit in the current year was reduced by an increase in the overhead costs on shipments, resulting from

the recorded pension withdrawal obligation established in the last quarter of the current fiscal period, explained in greater detail in

Financial Statement Note 7.

Pension Expense.

Selling, general and administrative expenses

were $4,113,608 for the fiscal year ended June 30, 2024;

an increase of $363,084 compared to the fiscal year ended June 30, 2023.

The increase in spending for the year ended June 30, 2024 compared to the same period in 2023 mainly relates to the increase in

employee compensation costs which includes a new business development employee.

and to a lesser extent, expenses increased related to travel expenses, recruiting expenses, and freight costs incurred on

outgoing shipments.

These increases were offset, in part, by a decrease in utility and outside selling costs related to non-employee

sales representatives.

Gross profit as a percentage of sales was 28.9% and 27.5%, for the same periods,

respectively.

The primary factors in determining the change in gross profit and net income are overall sales levels and product mix.

gross profits on mature products and build to print contracts are typically higher as compared to products which are still in the engineering

development stage or in early stages of production.

In the case of the latter, the Company can incur what it refers to as “loss

contracts,” primarily on engineering design contracts in which the Company invests with the objective of developing future product

In any given accounting period, the mix of product shipments between higher margin programs and less mature programs, and expenditures

associated with loss contracts, has a significant impact on gross profit and net income.

The increase in gross profit for the year ended

June 30, 2025 when compared to the same period last year resulted primarily from (i) sales levels and general product mix, (ii) higher

than average profit margins on completed milestone sales, and (iii) non-recurring cost savings related to realized labor efficiencies

and savings on material purchases.

Moreover, the gross profit in fiscal year 2024 had been negatively impacted by significant unanticipated

costs incurred on several fixed-priced engineering design contracts and a specific build to print contract, all for power supplies, due

to unforeseen complexities of the designs.

These factors did not impact the fiscal year 2025 gross profit.

Finally, gross profit

in fiscal year 2025 was increased by an improvement in the overhead rate on shipments.

This is attributed to the recorded pension withdrawal

obligation established in the last quarter of fiscal year 2024 that was paid in full during fiscal year 2025.

See Financial Statement

Pension Expense for further details.

Selling, general and administrative expenses were

$4,557,945 for the fiscal year ended June 30, 2025, an increase of $444,337 compared to the fiscal year ended June 30, 2024.

in spending for the year ended June 30, 2025 compared to the same period in 2024 mainly arose from the temporary increase in employee

compensation costs related to a brief overlap in a few positions requiring a training and transition

period due to retirements that occurred during 2025.

In addition, the Company had an increase in ESOP contributions, facility costs due

to the completion of the new building, and travel and entertainment expenses .

These increases were offset, in part, by a decrease

in the cost of insurance, conference and training costs, and marketing and advertising costs.

Other income for the fiscal years ended June

30, 2025 and 2024 was $1,601,978 and $755,562, respectively.

The increase is primarily due to the increase in interest income resulting from

an increase in investment securities and an increase in fixed interest rates.

Interest income is a function of the level of investments

and investment strategies that generally tend to be conservative.

The increase is due to the increase in interest income resulting from an

increase in investment securities and an increase in fixed interest rates.

The Company also received a one-time Capital Investment Grant

in the amount of $300,000 related to the completion of the new building in fiscal 2025.

Interest income is a function of the level of

investments and investment strategies that generally tend to be conservative.

The Company’s effective tax rate was approximately

20.3% in the fiscal year 2024 and approximately 21.9% in fiscal year 2023.

16.3% in fiscal year 2025 and approximately 20.3% in fiscal year 2024.

The effective tax rate in fiscal 2025 is less than the statutory

tax rate mainly due to the benefit received from ESOP dividends paid on allocated shares and a benefit from foreign derived intangible

income, offset in part by permanent differences related to incentive stock options.

The effective tax rate in fiscal 2023 is greater than

the statutory tax rate mainly due to the permanent difference for incentive stock option expense recorded for book purposes which is not

deductible for tax purposes.

During fiscal 2023, there was no benefit received from ESOP dividends paid on allocated shares due to the

suspension of the company dividend through February 2023.

The effective tax rate in the year ended June 30, 2024 was lower

than the comparable prior year primarily from the benefit derived from ESOP dividends paid on allocated shares, greater benefit derived

from foreign derived intangible income and a benefit derived from the exercise of incentive stock options in the current period when compared

to same period in the prior year.

tax rate mainly due to the benefit received from stock option exercises, dividends paid on allocated ESOP shares, and a benefit from foreign

derived intangible income, offset in part by permanent differences related to incentive stock options.

The effective tax rate in fiscal

2024 is less than the statutory tax rate mainly due to the benefit received from ESOP dividends paid on allocated shares and a benefit

from foreign derived intangible income, offset in part by permanent differences related to incentive stock options.

The Company generated net income for fiscal year

1 unchanged sentence

basic and diluted, for fiscal year 2024.

The increase in net income in the year ended June 30, 2024 compared to the same period

in 2023 is primarily attributable to higher sales, a higher gross profit margin percentage, an increase in other income, offset in part,

by an increase in selling, general, and administrative expenses and an increase in the provision for income taxes.

The increase in net income in the year ended June 30, 2025 compared to the same period in 2024

is primarily attributable to higher sales, a higher gross profit margin percentage, an increase in other income, offset in part, by an

increase in selling, general, and administrative expenses and an increase in the provision for income taxes.

Liquidity and Capital Resources

11 unchanged sentences

The Company's working capital as of June 30, 2025

and 2023 was approximately $38 million and $33.2 million, respectively.

The Company may at times be required to repurchase shares at

the ESOP participants’ request at the fair market value.

and 2024 was approximately $46.9 million and approximately $38 million, respectively.

The Company may at times be required to repurchase

shares at the ESOP participants’ request at the fair market value.

During the years ended June 30, 2025 and 2024, the Company did

11 unchanged sentences

The increase in cash provided by operating activities

compared to the prior year primarily relates to an increase in net income, a decrease in prepaid expenses and other current assets, a

decrease in inventory, an increase in accounts payable and other accrued expenses, offset in part, by a decrease in contract liabilities,

and an increase in trade accounts receivable.

Net cash used in investing activities

increased in the year ended June 30, 2024 as compared to the same period in 2023 due to an increase in investment securities when

compared to the same period last year, in addition to additions to property, plant and equipment, partially offset by proceeds

received from the grant award.

Cash used in financing activities for the year ended June 30, 2024 relates primarily to

dividend payments on common stock, offset in part, by proceeds from the exercise of stock options.

compared to the prior year primarily relates to an increase in contract liabilities and a decrease in inventory, offset in part, by an

increase in accounts receivable, increase in prepaid expenses and other current assets, and a decrease in accounts payable.

Net cash used

in investing activities decreased in the year ended June 30, 2025 as compared to the same period in 2024 due to a decrease in proceeds

received from grant awards and a decrease in additions to property, plant and equipment.

This was partially offset by a decrease in the

purchase of investment securities net of proceeds from the sale and maturity of investment securities when compared to the same period

Cash used in financing activities for the year ended June 30, 2025 relates primarily to dividend payments on common stock,

offset in full, by proceeds from the exercise of stock options.

The Company currently believes that

2 unchanged sentences

During the fiscal years ended June

30, 2024 and 2023, the Company expended $5,164,165 and $512,016, respectively, for plant improvements and new equipment, of which $4,886,113

and $249,705, respectively, was either reimbursed or eligible to be reimbursed under a not to exceed $7.4 million award received by the

The award received by the Company is in support of facility and capital equipment upgrades for testing and qualification for

the United States Navy.

This funding award is part of the Navy’s investment to improve and sustain the Surface Combatant Industrial

Separately, the Company has budgeted approximately $500,000 for new equipment and plant improvements in fiscal year 2025, not reimbursable

under the funding award.

A majority of these expenditures will be made to stay competitive in the marketplace and to meet the needs of

current contracts.

Management believes that the

Company's allowance for credit losses of $3,000 is adequate given the customers with whom the Company does business based on

historical experience, current economic market conditions, performance of specific account reviews, and other factored

considerations to include, but not limited to, contracts covered by government funding and the overall health of the industry.

30, 2025 and 2024, the Company expended $4,365,404 and $5,164,165, respectively, for plant improvements and new equipment.

Of the total expended amount, $3,260,000 was reimbursed in fiscal year 2025 and $4,228,722 was reimbursed in fiscal year 2024 under a not-to-exceed $7.4 million award received by the Company.

Additionally, during the

fiscal year ended June 30, 2025 there was $1,731,042 for plant improvements and new equipment eligible for reimbursement under a not-to-exceed $3.4 million award received by the Company.

The award received by the Company is in support of facility and capital equipment

upgrades for testing and qualification for the United States Navy.

This funding award is part of the Navy’s investment to improve

and sustain the Surface Combatant Industrial Base.

Separately, the Company has budgeted approximately $850,000 for new equipment and

plant improvements in fiscal year 2026, not reimbursable under the funding award.

A majority of these expenditures will be made to stay

competitive in the marketplace and to meet the needs of current contracts.

Management believes that the Company's

allowance for credit losses of $3,000 is adequate given the customers with whom the Company does business based on historical experience,

current economic market conditions, performance of specific account reviews, and other factored considerations to include, but not limited

to, contracts covered by government funding and the overall health of the industry.

Historically, bad debt expense has been minimal.

Critical Accounting Policies and Significant Estimates

The preparation of our consolidated financial statements

in accordance with generally accepted accounting principles requires management to make certain judgments, estimates, and assumptions

that affect the reported amounts as presented on the face of the financial statements.

These critical accounting policies and estimates

are those that are most important to the portrayal of our financial condition and results of operations.

We base our estimates on historical

experience and other assumptions that we believe to be reasonable.

Management continually reviews and evaluates these critical accounting

policies and estimates in light of evolving business conditions, regulatory developments, and changes in the economic environment.

future events cannot be determined and their impact on the financial statements are uncertain, actual results may differ from our estimates

and could be material to the consolidated financial statements.

Historically, we have found our application of accounting policies to

be appropriate, and actual results have not differed materially from established estimates.

The critical accounting policies and estimates

that we believe have the most significant effect on our financial statements are revenue recognition, inventory valuation, and deferred

Revenue Recognition

The majority of our sales are generated from military

contracts from defense companies, the Department of Defense, other agencies of the government of the United States and foreign governments.

We provide our products and design and development services under fixed-price contracts.

Under fixed-price contracts we agree to perform

the specified work for a pre-determined price.

To the extent our actual costs vary from the estimates upon which the price was negotiated,

our generated profit will fluctuate or a loss could be incurred.

We evaluate the products or services promised in each

contract at inception to determine whether the contract should be accounted for as having one or more performance obligations.

judgment is required in determining performance obligations.

We determine the transaction price for each contract based on the consideration

we expect to receive for the products or services being provided under the contract.

As the Company does not have standalone observable

prices, a contract’s transaction price of each performance obligation is based on the standalone selling price, which is determined

using an expected cost plus a margin approach.

Valuation of Inventories

Raw materials are valued at the lower of cost (average

cost) or net realizable value.

Balances for slow-moving and obsolete inventory are reviewed on a regular basis by analyzing estimated

demand, inventory on hand, sales levels, market conditions, and other available information.

Inventory balances are reduced based on this

Inventory relating to contracts in process and

work in process is valued at cost, including factory overhead incurred to date.

Contract costs include material, subcontract costs, labor,

and an allocation of overhead costs.

Work in process represents spare units and parts and other inventory items acquired or produced to

service units previously sold or to meet anticipated future orders.

Provision for losses on contracts is made when the existence of such

losses becomes probable and estimable.

The provision for losses on contracts is included in other accrued expenses on the Company’s

balance sheet.

The costs attributed to units delivered under contracts are based on the estimated average cost of all units expected

to be produced.

Certain contracts are expected to extend beyond twelve months.

The estimation of total cost at completion of

a contract is subject to variables including contract costs incurred and expected to be incurred as well as estimates regarding contract

completion dates.

Given the significance of the estimation processes and judgments described above, it is possible that materially different amounts of

expected contract costs could be recorded if different assumptions were used, based on changes in circumstances, in the estimation process.

When a change in expected estimated cost is determined, changes are reflected in current period earnings.

Deferred Taxes

The Company follows the provisions of the Financial

Accounting Standards Board (“FASB”), Accounting Standards Codification (ASC) Topic 740-10, “Accounting for Income Taxes."

Under the provisions of FASB ASC 740-10, deferred tax assets and liabilities

are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing

assets and liabilities and their respective tax bases.

Deferred tax assets and liabilities are measured using enacted tax rates expected

to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

on deferred taxes and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date.

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