What changed in this filing

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Item 1A. Risk Factors

2024-02-08 compared with 2023-02-07 · 20 added, 28 removed, 145 unchanged (25% of the section changed)

11 unchanged sentences

government provides a significant portion of our revenue.

In 2022, 70% of our consolidated revenue was from the U.S.

In 2023, approximately 70% of our consolidated revenue was from the U.S.

Levels of U.S.

2 unchanged sentences

Decreases in U.S.

government defense and other spending or changes in spending allocation or priorities could result in one or more of our programs being reduced, delayed or terminated, which could impact our financial performance.

government defense and other spending or

changes in spending allocation or priorities could result in one or more of our programs being reduced, delayed or terminated, which could impact our financial performance.

For additional information relating to U.S.

budget matters, see the Business Environment section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7.

government budget and funding matters, see the Business Environment section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7.

government contracts are not always fully funded at inception, and any funding is subject to disruption or delay.

29 unchanged sentences

In some cases, audits may result in disputes with the respective government agency that can result in negotiated settlements, arbitration or litigation.

Moreover, new laws, regulations or standards, or changes to existing ones, can increase our performance and compliance costs and reduce our revenue and earnings.

Moreover, new laws, regulations or standards, or

changes to existing ones, can increase our performance and compliance costs and reduce our revenue and earnings.

Our Aerospace segment is subject to changing customer demand for business aircraft.

The business jet market is driven by the demand for business-aviation products and services by corporate, individual and government customers in the United States and around the world.

The Aerospace segment’s results also depend on other factors, including general economic conditions, the availability

and cost of credit, pricing pressures and trends in capital goods markets.

Customer demand can be affected by a number of factors, including changes in general economic conditions, the availability and cost of credit, pricing pressures and trends in capital goods markets.

An adverse change in customer demand for our business-aviation products and services could materially affect our future revenue and earnings.

In addition, if customers default on existing contracts and the contracts are not replaced, the segment’s anticipated revenue and profitability could be reduced materially.

19 unchanged sentences

Many of the products and services we provide involve sophisticated technologies and engineering, with related complex manufacturing and system-integration processes.

Our customers’ requirements change and evolve regularly.

Our customers’ requirements change and evolve

Accordingly, our performance depends in part on our ability to continue to develop, manufacture and provide innovative products and services and bring those offerings to market quickly at cost-effective prices.

2 unchanged sentences

To the extent that the demand for skilled personnel exceeds supply, we could experience higher labor, recruiting or training costs in order to attract and retain such employees.

If we were unable

to develop new products that meet customers’ changing needs and satisfy regulatory requirements in a timely manner or successfully attract and retain qualified personnel, our future revenue and earnings may be materially adversely affected.

If we were unable to develop new products that meet customers’ changing needs and satisfy regulatory requirements in a timely manner or successfully attract and retain qualified personnel, our future revenue and earnings may be materially adversely affected.

Risks Relating to Our International Operations

26 unchanged sentences

market conditions following the acquisition;

liabilities, including some that may not have been identified prior to the acquisition.

and acquired liabilities, including some that may not have been identified prior to the acquisition.

These factors could materially adversely affect our financial results.

12 unchanged sentences

We generally face the same security threats for these systems and products as for our own internal systems.

In addition, we face cyber threats from entities and persons that may seek to target us through our customers, suppliers and other third parties with whom we do business.

In addition, we face cybersecurity threats from entities and persons that may seek to target us through our customers, suppliers and other third parties with whom we do business.

Many of these cybersecurity threats are increasingly sophisticated and constantly evolving.

4 unchanged sentences

Such prior events have not had a material impact on our financial condition, results of operations or liquidity.

However, future threats could have a materially adverse impact on our company by, among other things, causing harm to our business, results of operations or reputation;

However, future threats could have a materially adverse impact on our company by, among other things, causing harm to our business, financial condition, results of operations or

disrupting our operations;

4 unchanged sentences

Our business may continue to be negatively impacted by the coronavirus (COVID-19) pandemic and could be negatively impacted by other pandemics and outbreaks.

The COVID-19 pandemic has had, and could continue to have, a negative effect on our business, results of operations

and financial condition.

This includes disruptions or restrictions on our employees’ ability to work effectively, temporary closures of our facilities and the facilities of our customers, and supply-chain disruptions.

The COVID-19 pandemic has had, and could continue to have, a negative effect on our business, results of operations and financial condition.

This includes disruptions or restrictions on our employees’ ability to work effectively, temporary closures of our facilities and the facilities of our customers, and the imposition of quarantine and travel restrictions that have and may in the future negatively affect demand for our products and services and result in supply-chain disruptions.

Any such effects could materially adversely affect our ability to perform on our contracts.

In addition, the U.S.

government’s federal contractor vaccine mandate, if enforced, could adversely affect our ability, and our subcontractors’ ability, to hire and retain highly skilled employees to work on U.S.

government programs.

Any cost increases that result from these effects may not be fully recoverable on our contracts or adequately covered by insurance.

In addition, the COVID-19 pandemic has resulted in a widespread health crisis that is adversely affecting the economies and financial markets of many countries, which could result in a prolonged economic downturn that may negatively affect demand for our products and services.

The imposition of quarantine and travel restrictions has negatively affected and, if reimposed, may continue to negatively affect portions of our business.

The extent to which COVID-19 continues to impact our business, results of operations and financial condition is highly uncertain and will depend on future developments.

Such developments may include the geographic spread and duration of the virus, including the emergence of new variants, the severity of the disease, vaccination rates and the actions that may be taken by various governmental authorities and other third parties in response to the pandemic.

Other outbreaks of contagious diseases, or other adverse public health developments in countries where we operate or our customers are located, could similarly adversely affect our business, results of operations and financial condition in the future.

Other outbreaks of contagious diseases, including new variants of COVID-19, or other adverse public health developments in countries where we operate or our customers are located, could similarly adversely affect our business, results of operations and financial condition in the future.

Global climate change could negatively affect our business.

1 unchanged sentence

If environmental or climate-change laws or regulations are adopted or changed that directly or indirectly impose significant new costs, operational restrictions or compliance requirements on our business, products, customers or suppliers, they could increase our costs, require additional capital expenditures, reduce our margins and adversely affect our business, results of operations and financial condition.

Further, while we continuously evaluate the evolving landscape of environmental-related legislation and seek opportunities for continuous improvement of our existing climate-related measures, as well as new ways to minimize our impact on the planet, there can be no assurance that changes in customer demand patterns and competition driven by climate change, as well as potential climate-related reputational risks will not adversely affect our business, results of operations and financial condition.

Further, while we continuously evaluate and seek opportunities to improve our climate-related measures, there can be no assurance that changes in customer demand patterns and competition, as well as potential reputational risks, related to climate change will not adversely affect our business, results of operations and financial condition.

FORWARD-LOOKING STATEMENTS

4 unchanged sentences

We believe our estimates and judgments are reasonable based on information available to us at the time.

Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation

Reform Act of 1995, as amended.

Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended.

These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.

Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including the risk factors discussed in this Form 10-K.

Therefore, actual future results and trends

may differ materially from what is forecast in forward-looking statements due to a variety of factors, including the risk factors discussed in this Form 10-K.

All forward-looking statements speak only as of the date of this report or, in the case of any document incorporated by reference, the date of that document.

2 unchanged sentences

These factors may be revised or supplemented in future filings with the SEC.

UNRESOLVED STAFF COMMENTS

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 1A. Risk Factors