What changed in this filing

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Item 1. Business

2023-02-22 compared with 2022-02-23 · 70 added, 47 removed, 253 unchanged (32% of the section changed)

32 unchanged sentences

In January 2020, the

Company announced that Airbus will also be offering the Company's dimmable aircraft windows on its aircraft with production starting in late 2020.

Company announced that Airbus will also be offering the Company's dimmable aircraft windows on its aircraft, with production having begun in 2021.

In January 2020, the Company unveiled an innovative lighting technology for medical applications that was co-developed with Mayo Clinic.

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HomeLink ® consists of vehicle-integrated buttons that can be programmed to operate a myriad of home automation devices.

Integration of Simplenight into the Company's HomeLink Connect ® app is underway and will allow users to program their HomeLink ® buttons and control cloud-based devices from their vehicles.

Integration of Simplenight into the Company's HomeLink Connect ® app is underway.

The HomeLink Connect ® allows users to program their HomeLink ® buttons and control cloud-based devices from their vehicles.

In September 2021, the Company announced the acquisition of Guardian Optical Technologies ("Guardian"), an Israeli startup that pioneered a unique, multi-modal sensor technology designed to provide a comprehensive suite of driver- and cabin-monitoring solutions for the automotive industry.

The core of Guardian’s technology is an infrared-sensitive, high-resolution camera that combines machine vision, depth perception, and micro-vibration detection.

This proprietary sensor configuration allows the system to not only monitor the driver, but also the entire vehicle cabin, including objects and other occupants, even assessing the occupant's behaviors, gestures, and activities.

The system continuously scans, tracks and determines the physical location of every vehicle occupant and object, even without a direct line of sight, by combining two-dimensional video image recognition with 3D depth mapping and optical motion analysis.

It is able to detect even slight movements, including heartbeats.

In January 2022, the Company announced a partnership, in the ordinary course of business, with eSight, a leading provider of vision enhancement technology, to develop and manufacture the next generation of mobile electronic eyewear designed to help people living with visual impairments.

The Company plans to utilize its expertise in digital vision, software development and industrial design to help eSight develop the next generation of eyewear, with a focus on reducing device size, enhancing its form factor, and optimizing overall system performance.

In 2022, the Company obtained an approximate 20% equity share in GreenMarbles in the ordinary course of business.

GreenMarbles is a leading provider of sustainable solutions for integration into properties.

The Company plans to utilize this relationship to promote the HomeLink Connect ® App with property developers and contractors.

Automotive revenues represent approximately 97% of the Company's total revenue in 2022, mostly consisting of interior and exterior electrochromic automatic-dimming rearview mirrors and automotive electronics.

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The Company designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products, including:

automatic-dimming and non-automatic-dimming rearview mirrors and

electronics for the automotive industry;

automatic-dimming and non-automatic-dimming rearview mirrors and electronics for the automotive industry;

dimmable aircraft windows for the aviation industry;

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The Company manufactures interior electrochromic automatic-dimming rearview mirrors that darken to reduce glare and improve visibility for the driver.

These electronic interior mirrors can also include additional electronic features such as compass, microphones, HomeLink ® , lighting assist and driver assist forward safety camera systems, various lighting systems, various telematics systems, ITM ® systems, and a wide variety of displays, including the Full Display Mirror ® product.

These electronic interior mirrors can also include additional electronic features such as compass, microphones, HomeLink ® , interior driver and cabin monitoring systems, lighting assist and driver assist forward safety camera systems, various lighting systems, various telematics systems, ITM ® systems, and a wide variety of displays, including the Full Display Mirror ® product.

The Company also ships interior non-automatic-dimming rearview mirrors with and without features.

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The Company is the leading manufacturer of electrochromic automatic-dimming rearview mirrors in the world, and is the largest supplier to the automotive industry.

Competitors for automotive rearview mirrors include Magna International, Tokai Rika Company, SMR Automotive, Aolian, Intertech, Kingband, BYD Auto Company, Sincode, Yanfeng Visteon, Xiamen Intertech, Guangdong Yuanfeng, Chongqing Yimei, Murakami, Ultronix, Aizhuo, Alpine Electronics, Inc., Licon, Mirrortech, Ambilight and the China automotive aftermarket.

Competitors for automotive rearview mirrors include Magna International, Tokai Rika Company, SMR Automotive, Aolian, Intertech, Kingband, BYD Auto Company, Sincode, Yanfeng Visteon, Xiamen Intertech, Guangdong Yuanfeng, Chongqing Yimei, Murakami, Ultronix, Aizhuo, Alpine Electronics, Inc., Licon, MirrorTech, Ambilight, and others in the Chinese automotive aftermarket.

The Company also supplies electrochromic automatic-dimming rearview mirrors to certain of these rearview mirror competitors.

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Advanced-feature automatic-dimming mirrors currently being offered by the Company include one or more of the following features:

SmartBeam ® , HomeLink ® , HomeLink Connect ® , frameless mirror designs, LED map lamps, compass and temperature displays, telematics, ITM ® systems, hands free communication, Rear Camera Display ("RCD") interior mirrors, FDM ® interior mirrors, digital video recording solutions, exterior turn signals, side blind zone indicators and various other exterior mirror features that improve safety and field of view.

SmartBeam ® , HomeLink ® , HomeLink Connect ® , frameless mirror designs, LED map lamps, compass displays, telematics, ITM ® systems, hands free communication, Rear Camera Display ("RCD") interior mirrors, FDM ® interior mirrors, digital video recording solutions, exterior turn signals, side blind zone indicators and

various other exterior mirror features that improve safety and field of view.

Advanced features currently in development include:

biometric authentication systems, hybrid and fully digital camera monitoring systems ("CMS"), driver and cabin monitoring systems, cabin sensing systems, touch screen displays for mirrors, and digital enhancements to displays to improve driver safety, among other things.

Other automotive products currently in development include large area dimmable devices, which include sunroof and moonroof applications, driver and passenger windows, interior sun-visors and other window surfaces in vehicles, among others.

Other automotive products currently in development include large area dimmable devices, which include sunroof and moon roof applications, driver and passenger windows, interior sun-visors and other window surfaces in vehicles, among others.

The Company is also in development of small-scale dimmable devices that darken to improve contrast and legibility for transparent displays, concealment of sensors, and to dynamically adjust camera exposure.

Automotive Rearview Mirrors and Electronics Markets and Marketing.

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The Company generally supplies automatic-dimming mirrors and mirrors with advanced electronic features to its customers worldwide under annual blanket purchase orders with customers, as well as under long-term agreements with certain customers, entered into in the ordinary course of the Company's business.

The Company is currently supplying mirrors and electronic modules for Aston Martin, BMW Group, Daimler Group, Ferrari, Ford Motor Co., Geely/Volvo, General Motors, Honda Motor Co., Hyundai/Kia, Lucid Motors, Mazda, Mahindra & Mahindra, McLaren, Polaris, Renault/Nissan/Mitsubishi Group, Rivian Automotive, Stellantis, Subaru, Suzuki, Tata Motors, Tesla, Toyota Motor Company, Volkswagen Group, as well as, shipments to domestic China manufacturers (Borgward, BYD, Chery, Dongfeng, FAW, Great Wall Motors, Human Horizon, Jianghuai, King Long, Lixiang Auto, NIO, and SAIC).

Revenues by major geographic area are disclosed in Note 7 to the Consolidated Financial Statements.

The Company is currently supplying mirrors and electronic modules for Aston Martin, BMW Group, Daimler Group, Faraday Future, Ferrari, Ford Motor Co., Geely/Volvo, General Motors, Harley Davidson, Honda Motor Co., Hyundai/Kia, Lucid Motors, Mazda, Mahindra & Mahindra, McLaren, Polaris, Renault/Nissan/Mitsubishi Group, Rivian Automotive, Stellantis, Subaru, Suzuki, Tata Motors, Tesla, TOGG Inc., Toyota Motor Company, Volkswagen Group, VOXX International, as well as shipments to domestic China manufacturers (BYD, Chery, Dongfeng, FAW, Great Wall Motors, Human Horizon, King Long, Lixiang Auto, NIO, SAIC, and Xpeng EV).

Revenues by major geographic area are disclosed in Note 7 of the Consolidated Financial Statements.

Traditionally, new products and technologies have been restricted to high-end vehicles and premium trim/option packages.

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The Company has contributed to this differentiation strategy, allowing OEMs to maximize profitability and optionality by providing profitable, mirror-based and in-vehicle technologies that consumers demand.

As more consumers have become familiar with interior and exterior dimming mirrors, HomeLink ® , FDM ® , and other Company technologies, consumers have continued to select these technologies in their subsequent vehicles, driving further market and nameplate penetration as OEMs launch new vehicles and expand into new markets.

As more consumers have become familiar with interior and exterior dimming mirrors, HomeLink ® , FDM ® , ITM ® , and other Company technologies, consumers have continued to select these technologies in their subsequent vehicles, driving further market and nameplate penetration as OEMs launch new vehicles and expand into new markets.

Where OEMs had historically used Company technologies only to differentiate from one another, they have now begun to also use Company technologies to differentiate trim lines across their own nameplates.

In new markets, emerging OEMs have recognized the need to include Company products in their vehicles to compete with global OEMs and to maximize per-vehicle profitability.

In new markets, emerging OEMs have recognized the need to include Company products in their vehicles to compete with global OEMs.

Automotive Rearview Mirrors and Electronics Competition.

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While the Company believes it will retain a significant position in automatic-dimming rearview mirrors for some time, another U.S.

manufacturer, Magna Mirrors, a division of Magna International Inc.

("Magna"), continues to compete for sales to domestic and foreign vehicle manufacturers and is supplying a number of domestic and foreign vehicle models with its versions of auto-dimming mirrors and appears to have considerably more resources available to it.

manufacturer, Magna Mirrors, a division of Magna International ("Magna"), continues to compete for sales to domestic and foreign vehicle manufacturers and is supplying a number of domestic and foreign vehicle models with its versions of auto-dimming mirrors and appears to have considerably more resources available to it.

As such, Magna may present a formidable competitive threat.

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Moreover, other companies have demonstrated products that are competitive to the Company's Full Display Mirror ® system, and a small number of Chinese domestic mirror suppliers have begun marketing and selling these products, in low volume, within the domestic China market.

Further, a Japan manufacturer (Murakami) has begun selling and marketing competitive Full Display Mirror ® products in Japan.

Further, two Japan manufacturers (Murakami and Panasonic) have begun selling and marketing competitive Full Display Mirror ® type products in Japan.

The Company acknowledges that dimming device (e.g., electrochromic) technology is the subject of research and development efforts by numerous third parties.

In November 2020, the Company announced a partnership, in the ordinary course of business, with PayByCar™, to pursue compatibility between the Company's ITM ® and PayByCar's innovative payment solution that allows drivers to use their smartphones and toll transponder to fuel up at certain gas stations without using cash or a credit card.

to use their smartphones and toll transponder to fuel up at certain gas stations without using cash or a credit card and to pay at parking garages.

Compatibility between these two technologies can help to grow each company's respective consumer base while introducing new users to the benefits of the transactional vehicle.

4 unchanged sentences

HomeLink ® consists of vehicle-integrated buttons that can be programmed to operate a myriad of home automation devices.

The Company is currently integrating Simplenight into its HomeLink Connect ® app, which helps users program their HomeLink ® buttons and control cloud-based devices from their vehicles.

Integration of Simplenight into the Company's HomeLink Connect® app is underway.

The HomeLink Connect app allows users to program their HomeLink® buttons and control cloud-based devices from their vehicles.

In 2022, the Company obtained an approximate 20% equity share in GreenMarbles in the ordinary course of business.

GreenMarbles is a leading provider of sustainable solutions for integration into properties.

The Company plans to utilize this relationship to promote the HomeLink Connect ® App with property developers and contractors.

The Company believes its electrochromic automatic-dimming mirrors and mirrors with advanced electronic features offer significant performance advantages over competing products and the Company makes significant research and development investments to continue to increase and improve the performance advantages of its products and to potentially add new products.

There are numerous other companies in the world conducting research on various technologies, including electrochromics, for controlling light transmission and reflection.

The Company currently believes that the electrochromic materials and manufacturing process it uses for automotive mirrors remains the most efficient and cost-effective way to produce such products.

The Company currently believes that the electrochromic materials and manufacturing process it uses for automotive mirrors remains the most efficient and cost-effective way to produce these products.

The Company has also continued to invest in new technologies to improve manufacturing processes.

In the fourth quarter of 2020, the Company, in the ordinary course of business, completed the acquisition of Argil, Inc., which specializes in electrochromic technology and research and development, which the Company anticipates using to complement and expand its product offerings and leverage for manufacturing efficiencies.

In 2020, the Company, in the ordinary course of business, completed the acquisition of Argil, Inc., which specializes in electrochromic technology and research and development, which the Company anticipates using to complement and expand its product offerings and leverage for manufacturing efficiencies.

While automatic-dimming mirrors using other technologies may eliminate glare, the Company currently believes that each of these other technologies have inherent cost or performance limitations as compared to the Company's technologies.

3 unchanged sentences

The Company continues to manufacture and sell variable dimmable windows for the passenger compartment on the Boeing 787 Dreamliner series of aircraft.

In January 2019, the Company announced that it would be offering, as optional content, its latest generation of variable dimmable windows on the Boeing 777X aircraft.

During the third quarter of 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program.

As previously announced, Airbus is now offering, as optional content, the Company's dimmable aircraft windows on its aircraft, with production having began in the fourth quarter of 2021.

In 2019, the Company announced that it would be offering, as optional content, its latest generation of variable dimmable windows on the Boeing 777X aircraft.

Later in 2019, the first production shipments of variably dimmable windows were made to Boeing for the 777X program.

As previously announced, Airbus is now offering, as optional content, the Company's dimmable aircraft windows on its aircraft, with production having begun in 2021.

Markets and Marketing.

3 unchanged sentences

The Company’s success with electrochromic technology provides potential opportunities and use cases for other commercial applications, which the Company continues to explore.

including, but not limited to passenger smart-

lighting that automatically optimizes illumination for various in-flight activities like reading, dining, or computer work;

biometric systems for personalizing the in-flight experience;

and in-cabin particulate and chemical sensors for monitoring cabin air quality.

Fire Protection Products

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In the signaling appliance markets, the Company estimates it competes with approximately seven manufacturers.

While the Company faces significant competition in the sale of smoke detectors and signaling appliances, it believes that the introduction of new products, improvements to its

existing products, its diversified product line, and the availability of special features will permit the Company to maintain its competitive position.

While the Company faces significant competition in the sale of smoke detectors and signaling appliances, it believes that the introduction of new products, improvements to its existing products, its diversified product line, and the availability of special features will permit the Company to maintain its competitive position.

Nanofiber Products and Development

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Patent applications, 296 foreign patent applications, and 15 Registered Trademark applications.

The Company continuously seeks to improve its core technologies and apply those technologies to new and existing products.

The Company continuously seeks to improve its core technologies and apply those

technologies to new and existing products.

As those efforts produce patentable inventions, the Company expects to file appropriate patent applications.

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quarterly profit-sharing bonuses;

an extensive stock based compensation program that extends to all eligible employees, an employee stock purchase plan;

an extensive stock-based compensation program that extends to all eligible employees;

an employee stock purchase plan;

401(k) plan (or other retirement plan for non-US employees) with Company matching;

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The Company also provides a healthy and safe climate-controlled work environment that includes an on-site wellness center and on-site health clinic at its headquarters.

A number of health-related programs are

available to employees, including:

A number of health-related programs are available to employees, including:

asthma/COPD management services;

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and crop share, which offers employees fresh fruits and vegetables weekly.

The Company has also announced the creation of the Gentex Discovery Preschool, an on-site daycare and preschool designed to provide employees with convenient, cost-effective access to quality day care.

The Company is extremely proud of its workplace injury prevention programs, which have achieved workplace injury rates well below industry averages.

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While the Company has an environment of equal employment opportunity related to recruitment, hiring, promotion, discipline, and other terms of employment, the commitment to have a skilled and diverse world class workforce goes beyond that.

The Company's DE&I initiatives are supported by the its VP of Diversity, Equity, & Inclusion and DE&I Council, which helps implement specific diversity programs, supports internal training, and creates opportunities to spread awareness throughout the organization.

The Company's DE&I initiatives are supported by its VP of Diversity, Equity, & Inclusion and DE&I Council, which helps implement specific diversity programs, supports internal training, and creates opportunities to spread awareness throughout the organization.

The Company's DE&I Council is led by Mr.

Joe Matthews, VP of Diversity, Equity, & Inclusion.

Joe Matthews, VP of Diversity, Equity, & Inclusion and includes employees from many different parts of the Company.

The Company's DE&I initiatives are further supported by the DE&I Advisory Board, which is led by Mr.

Matthews, and includes various executives, including the CEO, and members that are not employees of the Company.

Matthews has been honored as a Salute to Diversity Winner by Corp!

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Among current BRGs are Women at Gentex and Veterans at Gentex.

DE&I efforts at the Company extend to the supply base as well, where the Company been recognized for ongoing efforts to increase supplier relationships with minority- and women-owned enterprises.

In 2022, Gentex also established a separate DE&I council in Salt Lake City to serve the Company employees that work at the research and development office located there.

This separate council has supported several organizations in the local Salt Lake City area, including supporting students from diverse backgrounds and sponsoring events to support global causes.

DE&I efforts at the Company extend to the supply base as well, where the Company been recognized for ongoing efforts to increase supplier relationships with certified minority, woman, veteran, and LGBTQ-owned enterprises.

In fact, the Company mentors certain such suppliers to help them develop the business systems and technology improvements necessary to support future growth.

The Company is a member of or otherwise involved in the Michigan Minority Supplier Development Council, Lakeshore Advantage Supplier Diversity Program Planning, Michigan Diversity Counsel, The Employers Association - HR Conference, Michigan Minority Procurement Conference, the Great Lakes Women's Business Council, and Yanfeng DEI Leadership Panel.

The Company is a member of or otherwise involved in the Michigan Minority Supplier Development Council, Original Equipment Supplier's Association - Diversity & Inclusion, Board of Governors, Consumer Technology Association - D&I Group, Michigan Diversity Connection, West Michigan Hispanic Chamber of Commerce, and the Great Lakes Women's Business Council.

Hiring rates, voluntary and involuntary turnover rates, internal rates of hiring and promotion, and safety records are considered as measures of the Company's success in human capital management.

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In an effort to ensure an excellent and increasingly diverse employment base, the Company has added Spanish speaking manufacturing lines, which involves materials for recruiting, orientation, on-boarding, training, and work in the Spanish language.

Forbes has named the Company as one of the "200 Best Small Companies" numerous times.

In 2019, Forbes also acknowledged the Company as a "Best Employer for Diversity." In addition, the Company is the recipient of an EPIC Diversity Visionary Award presented by a local Chamber of Commerce.

Moreover, the Company's DE&I efforts related to actively developing and using minority, women, and veteran-owned suppliers have been acknowledged and recognized by multiple OEM customers.

The Company is the recipient of an EPIC Diversity Visionary Award presented by a local Chamber of Commerce.

Moreover, the Company's DE&I efforts related to actively developing and using minority, women, and veteran-owned suppliers have been acknowledged and recognized by multiple original equipment manufacturer ("OEM") customers.

In fact, Toyota Motor Engineering & Manufacturing North America, Inc.

has specifically recognized the Company's efforts over the last 10 years to increase supplier relationships with minority business enterprises.

The Company has also won a supplier diversity award from Honda and was the City of Holland, Michigan's Human Relations Commission 2020 Social Justice Award winner.

A charitable program led by Company employees has been established as a means to give back to the community.

The Company has also won supplier diversity awards from Honda, Nissan, and Toyota, and was the City of Holland, Michigan's Human Relations Commission 2020 Social Justice Award winner.

In 2022, the Company established the Gentex Foundation, which will provide financial grants to organizations across the country in support of economic development, children's services, public health, housing assistance and diversity initiatives — among other causes.

The Gentex Foundation is managed by a board of directors that will review grant applications with a particular focus on communities where Company employees live and work, consistent with the organization's values of integrity, compassion, innovation and diversity.

Employees are encouraged to organize on-site fundraisers and to spend time volunteering at worthy charitable organizations in addition to giving financially.

The Company matches donations given by the employees.

Support is also provided to a number of minority organizations in keeping with the Company's DE&I efforts and to continue to build an even more diverse and skilled workforce.

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The Board and management know that the right talent is required to implement the Company's strategies.

As such, the Board works with management appropriately regarding the approach to, and investment in, human capital that includes recruitment, talent development, retention, and

The Board has access to all levels of employees in the Company in its efforts to properly oversee human resources issues.

As such, the Board works with management appropriately regarding the approach to, and investment in, human capital that includes recruitment, talent development, retention, and diversity.

The Board has access to all levels of employees in the Company in its efforts to properly oversee human resources and DE&I issues.

The Company's commitment to DE&I is very apparent by the inclusiveness of the Board of Directors.

The Board of Directors for the Company and the Nominating and Corporate Governance Committee has taken concrete steps to improve Board diversity, including use of various resources and environments to identify qualified and diverse director candidates.

The Board of Directors and the Nominating and Corporate Governance Committee have taken concrete actions to increase Board diversity, including use of various resources and environments to identify qualified and diverse director candidates.

Such candidates are contacted and interviewed in order to continue to build an even more diverse, qualified, and capable Board.

In 2022, the Company plans on disclosing Board of Directors diversity information as required by NASDAQ.

In the Company's 2022 Proxy Statement, the Company disclosed Board of Directors diversity information as required by NASDAQ, and will continue to do so in the future.

The Board has also implemented a Complaint Submission and Handling Policy for concerns to be raised as needed.

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– By 2049, carbon neutrality

The Company implements efficient alternatives for capital equipment, uses automated building management systems to use less energy, and has put in place extremely efficient lights and HVAC equipment.

The Company implements efficient alternatives for capital equipment, uses automated building management systems to use less energy, and has put in place extremely efficient lighting and HVAC equipment.

The Company also participates in the local Energy Smart Program, which promotes the implementation of progressive energy efficiency projects, including achieving the maximum goal possible for lighting and HVAC improvements, compressed air leak audits, and building control systems.

The Company also converted one of its manufacturing facilities to be powered entirely by renewable energy in 2022.

Gentex Environmental Management System (GEMS).

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With respect to sustainability initiatives, the Company has undertaken a number of actions related to energy, waste stewardship, water management, and environmental protection.

With respect to energy, the

Regarding energy, the Company:

utilizes software-managed and occupancy-sensor controlled lighting in all facilities;

3 unchanged sentences

has insulated metal panel systems for exterior walls (for energy efficiency);

captures excess heat from compressed air systems and uses it to pre-heat/temper water used in production;

takes excess water from production processes to use in boiler/snowmelt water;

captures excess heat from compressed air systems and uses it to preheat/temper water used in production;

takes excess water from production processes to use in boiler/snow melt water;

and installed a centralized water chiller plant to lower energy use.

With respect to waste stewardship, the Company improved its cleaning method for certain products to reduce material usage preventing thousands of pounds of additional waste material and uses recycled materials in facility carpets.

Regarding waste stewardship, the Company improved its cleaning method for certain products to reduce material usage preventing thousands of pounds of additional waste material and uses recycled materials in facility carpets.

In terms of waste management, the Company:

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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 1. Business