9 unchanged sentences
For our variable rate borrowings, we may use a fixed interest rate swap, effectively converting a portion of variable rate borrowings to fixed rate borrowings in order to mitigate the impact of interest rate changes on earnings.
−Removed: We utilize interest rate derivatives to mitigate
−Removed: interest rate exposure with respect to our financing arrangements.
−Removed: There were $451.5 million of outstanding borrowings against the Revolver at July 1, 2022.
+Added: We utilize interest rate derivatives to mitigate interest rate exposure with respect to our financing arrangements.
+Added: There were $511.5 million of outstanding borrowings against the Revolver at June 30, 2023.
C ONCENTRATION O F C REDIT R ISK
1 unchanged sentence
We place our cash and cash equivalents with financial institutions with high credit quality.
−Removed: As of July 1, 2022 and July 2, 2021, we had $65.7 million and $113.8 million, respectively, of cash and cash equivalents on deposit or invested with our financial and lending institutions.
−Removed: We provide credit to custo mers in the normal course of business.
+Added: As of June 30, 2023 and July 1, 2022, we had $71.6 million and $65.7 million, respectively, of cash and cash equivalents on deposit or invested with our financial and lending institutions.
+Added: We provide credit to customers in the normal course of business.
We perform ongoing credit evaluations of our customers’ financial condition and limit the amount of credit extended when deemed necessary.
−Removed: As of July 1, 2022, five customers accounted for 45% of our receivables, unb illed receivables and costs in excess of billings.
+Added: As of June 30, 2023, five customers accounted for 48% of our receivables, unbilled receivables and costs in excess of billings.
As of July 1, 2022, five customers accounted for 45% of our receivables, unbilled receivables and costs in excess of billings.
1 unchanged sentence
We operate primarily in the United States;
−Removed: however, we conduct business outside the United States through our foreign subsidiaries in Switzerland, the United Kingdom, France, Japan, Spain and Canada where business is largely transacted in non-U.S.
+Added: however, we conduct business outside the United States through our foreign subsidiaries in Switzerland, the United Kingdom, Spain, and Canada where business is largely transacted in non-U.S.
dollar currencies.
11 unchanged sentences
We have audited the accompanying consolidated balance sheets of Mercury Systems, Inc.
−Removed: and subsidiaries (the Company) as of July 1, 2022 and July 2, 2021, the related consolidated statements of operations and comprehensive income, shareholders’ equity, and cash flows for each of the fiscal years in the three-year period ended July 1, 2022, and the related notes and financial statement schedule II (collectively, the consolidated financial statements).
−Removed: We also have audited the Company’s internal control over financial reporting as of July 1, 2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
−Removed: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of July 1, 2022 and July 2, 2021, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended July 1, 2022, in conformity with U.S.
+Added: and subsidiaries (the Company) as of June 30, 2023 and July 1, 2022, the related consolidated statements of operations and comprehensive income, shareholders’ equity, and cash flows for each of the fiscal years in the three-year period ended June 30, 2023, and the related notes and financial statement schedule II (collectively, the consolidated financial statements).
+Added: We also have audited the Company’s internal control over financial reporting as of June 30, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
+Added: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of June 30, 2023 and July 1, 2022, and the results of its operations and its cash flows for each of the fiscal years in the three-year period ended June 30, 2023, in conformity with U.S.
generally accepted accounting principles.
−Removed: Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of July 1, 2022 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
−Removed: The Company acquired Avalex Technologies Corporation and Atlanta Micro, Inc.
−Removed: during fiscal 2022, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of July 1, 2022, Avalex Technologies, LLC and Atlanta Micro, Inc's internal control over financial reporting associated with 12 percent of total consolidated assets (of which 10 percent represented goodwill and intangible assets included within the scope of the assessment) and 3 percent of total consolidated revenues included in the consolidated financial statements of the Company as of and for the fiscal year ended July 1, 2022.
−Removed: Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of Avalex Technologies, LLC and Atlanta Micro, Inc.
+Added: Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of June 30, 2023 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
14 unchanged sentences
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
−Removed: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
−Removed: expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
+Added: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
5 unchanged sentences
The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Estimate of total contract costs to be incurred for fixed price contract revenue recognized over time
−Removed: As discussed in Note B to the consolidated financial statements, revenue recognized over time for the year ended July 1, 2022 represented 55% of total revenues.
+Added: Estimate of total contract costs to be incurred for certain fixed price contract revenue recognized over time
+Added: As discussed in Note B to the consolidated financial statements, revenue recognized over time for the year ended June 30, 2023 represented 56% of total revenues.
For contracts where revenue is recognized over time under fixed price arrangements, the Company recognizes revenue based on the ratio of (1) actual contract costs incurred to date to (2) the Company’s estimate of total contract costs to be incurred .
−Removed: We identified the evaluation of total contract costs to be incurred for fixed price contract revenue recognized over time as a critical audit matter given the complex nature of the Company’s products sold under such contracts.
+Added: We identified the evaluation of total contract costs to be incurred for certain fixed price contract revenue recognized over time as a critical audit matter given the complex nature of the Company’s products sold under such contracts.
In particular, evaluating the Company’s judgments regarding the amount of time to complete the contracts, including the assessment of the nature and complexity of the work to be performed, involved a high degree of subjective auditor judgment.
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.