What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2021-02-19 compared with 2020-02-20 · 75 added, 21 removed, 129 unchanged (43% of the section changed)

1 unchanged sentence

Recognized for their market leading innovation, many MSA products integrate a combination of electronics, mechanical systems and advanced materials to protect users against hazardous or life-threatening situations.

The Company's comprehensive product line, which is governed by rigorous safety standards across highly regulated industries, is used by workers around the world in a broad range of markets, including the oil, gas and petrochemical industry, fire service, construction, industrial manufacturing applications, utilities, mining and the military.

The Company's comprehensive product line, which is governed by rigorous safety standards across highly regulated industries, is used by workers around the world in a broad range of markets, including fire service, the oil, gas and petrochemical industry, construction, industrial manufacturing applications, utilities, mining and the military.

The Company's core products include breathing apparatus where self-contained breathing apparatus ("SCBA") is the principal product, fixed gas and flame detection systems, portable gas detection instruments, industrial head protection products, firefighter helmets and protective apparel and fall protection devices.

4 unchanged sentences

Segments — We tailor our product offerings and distribution strategy to satisfy distinct customer preferences that vary across geographic regions.

To best serve these customer preferences, we have organized our business into six geographic operating segments that are aggregated into three reportable geographic segments:

To best serve these customer preferences, we have organized our business into four geographic operating segments that are aggregated into three reportable geographic segments:

Americas, International and Corporate.

2 unchanged sentences

dollars and much of our business is conducted outside the U.S., currency fluctuations may affect our results of operations and financial position and may affect the comparability of our results between financial periods.

Products — We manufacture and sell a comprehensive line of safety products to protect the health and safety of workers and facility infrastructures around the world in the oil, gas and petrochemical industry, fire service, construction, industrial manufacturing applications, utilities, mining and the military.

Products — We manufacture and sell a comprehensive line of safety products to protect the health and safety of workers and facility infrastructures around the world in the fire service, the oil, gas and petrochemical industry, construction, industrial manufacturing applications, utilities, mining and the military.

Our products protect people against a wide variety of hazardous or life-threatening situations.

6 unchanged sentences

Breathing apparatus products.

Breathing apparatus products include SCBA, face masks and respirators.

SCBA is the primary product offering.

The primary breathing apparatus product is the SCBA.

SCBA are used by first responders, petrochemical plant workers and anyone entering an environment deemed immediately dangerous to life and health.

Our primary breathing apparatus product in the Americas segment, the MSA G1 SCBA, is a revolutionary platform that offers many customizable and differentiated features, including the first and only Integrated Thermal Imaging Camera available on the market.

We currently have 12 patents issued and an additional 2 patents pending for the MSA G1 SCBA.

Our primary breathing apparatus product in the Americas segment, the MSA G1 SCBA, is a revolutionary platform that offers many customizable and differentiated features.

Our newest breathing apparatus product, the MSA M1 SCBA, represents the most advanced and ergonomic SCBA we have ever launched for our International markets.

9 unchanged sentences

Our systems are used for gas detection in the oil and gas industry, petrochemical, pulp and paper, wastewater, refrigerant monitoring, pharmaceutical production and general industrial applications.

Our Ultima®X5000 and S5000 gas monitors enhance facility and worker safety while lowering overall cost of ownership for our customers through differentiated sensor technology.

These systems utilize a wide array of sensor technologies including electrochemical, catalytic, infrared and ultrasonic.

During 2017, we launched a new line of advanced gas detection monitors.

The Ultima ® X5000 and S5000 gas monitors enhance facility and worker safety while lowering overall cost of ownership for our customers through differentiated sensor technology.

• Flame detectors and open-path infrared gas detectors.

3 unchanged sentences

Our hand-held portable gas detection instruments are used to detect the presence or absence of various gases in the air.

The product is used by oil, gas and petrochemical workers, general industrial workers, miners, utility workers, first responders or anyone working in a confined space environment.

The product line is used by oil, gas and petrochemical workers, general industrial workers, miners, utility workers, first responders or anyone working in a confined space environment.

Typical applications of these instruments include the detection of an oxygen deficiency in confined spaces or the presence of combustible or toxic gases.

1 unchanged sentence

Our ALTAIR ® 2X, ALTAIR 4XR and ALTAIR 5X Multigas Detectors, with our internally developed XCell ® sensor technology, provide faster response times and unsurpassed durability.

During 2020, we launched the ALTAIR ® io360 Gas Detector, which combines the simple set-up of a smart home device, while allowing local or remote monitoring of hazardous areas.

The ultra-long battery life keeps the focus on safety and less on maintenance.

We sell portable gas detection instruments in both our Americas and International segments.

11 unchanged sentences

Our Cairns helmets are primarily used by firefighters in North America while the Gallet helmets are primarily used by firefighters across our International segment.

The acquisition of Globe ® Holding Company, LLC ("Globe"), a leading innovator and provider of firefighter protective clothing and boots, strengthened our position as a leader in the North American market for firefighter personal protective equipment (PPE).

MSA's firefighter safety PPE offering protects firefighters from head to toe, with Cairns Helmets, our industry leading G1 SCBA, and Globe turnout gear and boots.

The acquisition of Globe ® Holding Company, LLC ("Globe") and the recently announced acquisition of Bristol Uniforms, both leading innovators and providers of firefighter protective clothing and boots, strengthened our position as a leader in both the North American and International markets for firefighter personal protective equipment (PPE).

MSA's firefighter safety PPE offering in the Americas segment protects firefighters from head to toe, with Cairns Helmets, our industry leading G1 SCBA, and Globe turnout gear and boots.

MSA's firefighter safety PPE offering in the International segment includes the XF1 Gallet Helmet, the M1 SCBA and Bristol Uniforms turnout gear.

Fall protection.

3 unchanged sentences

The V-Series brand of fall protection equipment is inspired by MSA's iconic V-Gard hard hat, which is used by millions of workers around the world.

Additionally, we recently launched a patent-pending Personal Fall Limiter with a smart hook connector that using radio -frequency identification ("RFID") technology alerts wearers when they are not secured to an anchorage point.

We have patents and pending patents across substantially all of our products.

Non-core products.

1 unchanged sentence

Non-core products reinforce and extend the core offerings, drawing upon our customer relationships, distribution channels, geographical presence and technical experience.

These products are complementary to the core offerings and have their roots within the core product value chain.

Key non-core products include respirators, eye and face protection, ballistic helmets and gas masks.

These products are complementary to the core offerings and sometimes reflect more episodic or contract-driven growth patterns.

Key non-core products include air-purifying respirators ("APR"), eye and face protection, ballistic helmets and gas masks.

Ballistic helmet and gas mask sales are the primary sales to our military customers and were approximately $46 million globally in 2020 compared to $41 million in 2019.

MSA does not produce disposable respirators of any type;

however, Mine Safety Appliances Company, LLC ("MSA LLC"), one of the Company's subsidiaries, does produce advanced elastomeric APR, including half-mask respirators, full-facepiece respirators and powered air purifying respirators, each with replaceable filters providing a minimum of N-95 filtration capability.

These products have historically been used in many industrial and first responder applications.

APR products represented 8% of our consolidated sales for the year ended December 31, 2020 with over 75% of this business being in our Americas segment.

In the first quarter of 2020, Emergency Use Authorizations ("EUA") were issued by the FDA to expand the types of respiratory protection available to the medical community in response to COVID-19.

Those include an EUA that continues to temporarily permit the use of NIOSH-approved respirators in healthcare settings, including elastomeric APR products that are part of MSA LLC's existing portfolio.

In 2020, MSA LLC introduced its next-generation Advantage 290 LS Air-Purifying Respirator.

An elastomeric half-mask (EHMR) device which received approval from the National Institute for Occupational Safety and Health ("NIOSH"), the Advantage 290 LS Respirator covers a wearer's nose and mouth and utilizes twin filters to provide respiratory protection.

The Advantage 290 Respirator is the first EHMR to function without an exhalation valve, making it a new respiratory protection option that provides both personal protection and source control.

In addition, the new respirator gives healthcare facilities greater optionality and flexibility in developing their respiratory protection programs in accordance with Occupational Safety and Health Administration standards.

MSA LLC is committed to increasing production of masks within the existing portfolio to support our customer base and other response efforts.

Customers — Our customers generally fall into two categories:

15 unchanged sentences

Because of our broad and diverse product line and our desire to reach as many markets and market segments as possible, we have over 2,700 authorized distributor locations worldwide.

MSA maintains a diversified portfolio of safety products that protect workers and facility infrastructure across a broad array of end markets.

While the Company sells its products through distribution, which can limit end-user visibility, the Company provides estimated ranges of end market exposure to facilitate understanding of its growth drivers.

The Company estimates that approximately 35%-40% of its overall revenue is derived from the fire service market and 25%-30% of its revenue is derived from the energy market.

The remaining 30%-40% is split among construction, utilities, general industrial applications, military and mining.

Competition —The global safety products market is broad and highly fragmented with few participants offering a comprehensive line of safety products.

16 unchanged sentences

We believe another important aspect of our approach to new product development is that our engineers and technical associates work closely with the safety industry’s leading standards-setting groups and trade associations.

These organizations include the National Institute for Occupational Safety and Health ("NIOSH"), the National Fire Protection Association ("NFPA"), American National Standards Institute ("ANSI"), International Safety Equipment Association ("ISEA") and their overseas counterparts.

These organizations include NIOSH, the National Fire Protection Association ("NFPA"), American National Standards Institute ("ANSI"), International Safety Equipment Association ("ISEA") and their overseas counterparts.

Key members of our management team understand the impact that these standard-setting organizations have on our new product development pipeline.

15 unchanged sentences

Form SD may be obtained free of charge at www.sec.gov.

Associates — At December 31, 2019 , we employed approximately 4,800 associates, of which approximately 1,900 were employed by our International segment.

None of our U.S.

associates are subject to the provisions of a collective bargaining agreement.

Some of our associates outside the United States are members of unions.

We have not experienced a significant work stoppage in over 10 years and believe our relations with our associates are strong.

Human Capital —As of December 31, 2020, the Company employed approximately 4,800 people worldwide, of which approximately 2,100 were employed in the United States and 2,700 were employed outside of the United States.

Approximately 28% of our global workforce is covered by collective bargaining agreements or works councils.

Overall, we consider our employee relations to be good.

Our culture is important to our success.

To that end, we maintain seven core values that define our culture.

They are Integrity, Customer Focus, Diversity and Inclusion, Innovation and Change, Engagement, Teamwork and Speed and Agility.

Our core values are encircled by “A Culture of Safety.”

Workpla ce Health & Safety — As a company whose mission is dedicated to worker safety, MSA places great emphasis on the health and safety of our own associates.

To that end, the Company maintains a global Environmental, Health and Safety (“EHS”) Management System, deploys a variety of programs to reduce and eliminate injuries and promote safety and regularly measures progress against those programs.

These programs promote personal responsibility for workplace safety and encourage associates to set a meaningful example as safety ambassadors.

Response to COVID-19 —Through the efforts of a cross-functional COVID-19 response team, MSA has responded to numerous people-related challenges resulting from the pandemic.

The Company addressed various country, state, and local restrictions, mandates and guidelines and provided compliance programs at all MSA locations designed to operate facilities in a safe manner.

Among other efforts, this included implementing various associate work and safety protocols.

In addition, to support mental health and emotional well-being, all associates and their dependents worldwide have access to an Employee Assistance Program ("EAP"), at no cost to them.

This includes access to visits with mental health care providers through the EAP.

Diversity & Inclusion —Diversity & Inclusion is a Core Value at MSA, and the Company seeks a wide variety of people, thoughts, perspectives, and ideas.

MSA strives to provide a diverse and inclusive work environment, paired with a culture of excellence in which associates feel comfortable openly sharing thoughts and ideas.

Creating an inclusive environment helps to recruit and retain talent, promoting engagement, fostering innovation, and achieving MSA’s business objectives.

The Company maintains several Employee Resource Business Groups ("ERBGs") designed to foster a culture that is both engaged and inclusive.

These ERBGs are voluntary, associate-driven communities that capitalize on the wide variety of people and perspectives at MSA, driving our core value of Diversity and Inclusion.

MSA also partners with a number of non-profit and community-based organizations to help to build a pipeline of future talent with differing backgrounds, thoughts, experiences, and perspectives.

Approximately 51% of our U.S.

workforce self-identify as diverse.

This includes women who comprise approximately 42% of our U.S.

Among associates within executive pay grades, 34% self-identify as diverse.

We determine race and gender diversity based on our employees’ self-identification or other information compiled to meet the requirements of the U.S.

government, compiled as of December 31, 2020.

We count a female minority employee as one individual.

Leadership and Development —MSA provides programs to enable continuous learning, growth and development opportunities.

First, the MOVE Performance Management philosophy is a core element of associate engagement.

Meaningful, Ongoing, Vital Exchanges ("MOVE") between associates and supervisors provide a flexible, ongoing feedback loop to drive and enhance the engagement of associates, while facilitating the achievement of our strategic goals.

Second, the MSA Leader model sets the expectations of MSA people leaders.

Grounded in core principles that define MSA’s high performance culture of excellence, the MSA Leader model guides the development of current

and aspiring leaders.

It outlines the traits, knowledge, competencies, and experiences that MSA requires for successful leadership while encouraging leaders to remain true to their personal styles.

The model is the foundation of leadership development at MSA.

By combining leadership development, culture, and business acumen, leaders are better prepared to drive a high-performance culture while maintaining an engaged workforce with opportunities for development and growth.

Beyond these core programs, MSA designs and delivers a variety of associate leadership and development programs to further enhance the associate experience and opportunities for growth.

Associates are empowered to own their career development through business-aligned resources, tools and programs.

Compensation and Rewards —MSA’s Global Compensation Philosophy strives to provide total compensation for all associates at the market median, utilizing base salary, cash incentives and, in some cases, equity grants to achieve this goal.

We further strive to provide above-market compensation opportunities for associates who exceed goals and expectations.

This approach to Total Rewards is designed to help MSA attract, retain and motivate high-performing individuals who foster an innovative culture and drive business results.

Environmental Matters — Our facilities and operations are subject to laws and regulations relating to environmental protection and human health and safety.

9 unchanged sentences

Available Information — Our Internet address is www.MSAsafety.com.

We make the following filings available free of charge on the Investor Relations page on our website as soon as reasonably practicable after they have been electronically filed with or furnished to the Securities and Exchange Commission ("SEC"):

We make the following filings available free of charge on the Investor Relations page on our website as soon as they have been electronically filed with or furnished to the Securities and Exchange Commission ("SEC"):

our annual reports on Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as well as our proxy statement.

2 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.

What changed 10-K

Item 1. Business