What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-02-18 compared with 2021-02-19 · 45 added, 48 removed, 156 unchanged (37% 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 fire service, the oil, gas and petrochemical industry, construction, industrial manufacturing applications, utilities, mining and the military.

The Company's comprehensive product line, which are 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.

2 unchanged sentences

Our global product development teams include cross-functional associates throughout the Company, including research and development, marketing, sales, operations and quality management.

Our engineers and technical associates work closely with the safety industry’s leading standards-setting groups and trade associations to develop industry specific product standards and to anticipate their impact on our product lines.

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

2 unchanged sentences

Segment information is presented in Note 8 of the consolidated financial statements in Part II Item 8 of this Form 10-K.

Because our financial statements are stated in U.S.

Because our consolidated financial statements are stated in U.S.

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.

14 unchanged sentences

Fixed gas and flame detection instruments ("FGFD").

Our permanently installed fixed gas and flame detection instruments are used in oil, gas and petrochemical applications, wastewater, HVAC and general industrial production facilities to detect the presence or absence of various gases in the air.

Our permanently installed fixed gas and flame detection instruments are used in oil, gas and petrochemical applications, wastewater, heating, ventilation and air conditioning ("HVAC") and general industrial production facilities to detect the presence or absence of various gases in the air.

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

FGFD product lines generate a meaningful portion of overall revenue from recurring business including replacement components and related service.

The FGFD product line generates a meaningful portion of overall revenue from recurring business including replacement components and related service.

We sell these instruments in both our Americas and International segments.

8 unchanged sentences

These systems use infrared optics to detect potentially hazardous conditions across long distances, making them suitable for use in such applications as offshore oil rigs, storage vessels, refineries, pipelines and ventilation ducts.

In 2021 we completed the acquisition of Bacharach, Inc.

and its affiliated companies (Bacharach), a leader in gas detection technologies used in the heating, ventilation, air conditioning and refrigeration ("HVAC-R") markets.

Bacharach’s advanced instrumentation technologies help protect lives and the environment, while also increasing operational efficiency for its diversified customer base.

Bacharach's portfolio of gas detection and analysis products are used to detect, measure and analyze leaks of various gases that are commonly found in both commercial and industrial settings.

Bacharach has strong expertise in the refrigerant leak detection market with customers in the HVAC-R, food retail, automotive, commercial and industrial refrigeration, and military markets.

Portable gas detection instruments.

4 unchanged sentences

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.

During 2021, we announced the launch of the ALTAIR ® io™ 4 gas detection wearable, designed with fully integrated connectivity for real-time visibility across worksites.

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

The 2019 acquisition of Sierra Monitor Corporation ("SMC"), a leading provider of fixed gas and flame detection instruments and Industrial Internet of Things solutions that connect and help protect high-value infrastructure assets, enables MSA to accelerate its strategy to enhance worker safety and accountability through the use of cloud technology and wireless connectivity.

This acquisition enhances a key focus of the Company's Safety io ® subsidiary, launched in 2018 primarily to leverage the capabilities of its portable gas detection portfolio as it relates to cloud connectivity.

This business enhances a key focus of the Company's Safety io ® subsidiary, launched in 2018 primarily to leverage the capabilities of its portable gas detection portfolio as it relates to cloud connectivity.

Our Safety io ® Grid product offers fleet management and live monitoring capabilities that interface with MSA's portable gas detection instruments.

8 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") 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).

Globe ® Holding Company, LLC ("Globe") and Bristol Uniforms, are both leading innovators and providers of firefighter personal protective equipment ("PPE") and boots.

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.

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

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.

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

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

In late 2021, MSA announced the upcoming launch of MSA+™, our new safety solutions platform that integrates safety hardware technology, cloud software solutions and safety services.

By integrating our offerings and coupling them with subscription pricing, MSA will improve access to our solutions and facilitate the digital transformation of safety programs while further accelerating our recurring revenue business.

MSA+™ enables the evolution of our customers' safety landscape while reinforcing our relationships with our global distribution partner network.

Through its revenue sharing model, MSA+™ designed to decrease channel partner overhead and operational expense while building their recurring revenue business, enabling new value-added services and allowing them to differentiate themselves from the competition.

Non-core products.

4 unchanged sentences

Ballistic helmet and gas mask sales are the primary sales to our military customers and were approximately $43 million globally in 2021 compared to $46 million in 2020.

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:

11 unchanged sentences

In areas where we use indirect selling, we promote, distribute and service our products to general industry through authorized national, regional and local distributors.

Some of our key distributors include W.W.

Grainger Inc., Airgas, Casco Industries, Witmer Public Safety Group, Vallen Distribution, Ten-8 Fire Equipment, Essendant and Fastenal.

We distribute fire service products primarily through specially trained local and regional distributors who provide advanced training and service capabilities to volunteer and paid municipal fire departments.

2 unchanged sentences

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.

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

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

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.

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

As such, management devotes significant time and attention to anticipating a new standard’s impact on our sales and operating results.

As such, management devotes significant time and attention to anticipating a new standards' impact on our sales and operating results.

Because of our understanding of customer needs, membership on global standards-setting bodies, investment in research and development and our unique new product development process, we believe we are well positioned to anticipate and adapt to changing product standards.

7 unchanged sentences

For example, we rely on integrated manufacturing capabilities for breathing apparatus, gas masks, ballistic helmets, hard hats and circuit boards.

The primary raw materials that we source from third parties include electronic components, rubber, high density polyethylene, chemical filter media, eye and face protective lenses, air cylinders, certain metals and ballistic resistant, flame resistant and non-ballistic fabrics.

The primary materials that we source from third parties include electronic components, high density polyethylene, chemical filter media, rubber and plastic components, eye and face protective lenses, air cylinders, certain metals and ballistic resistant, flame resistant and non-ballistic fabrics.

We purchase these materials both domestically and internationally, and we believe our supply sources are both well established and reliable.

We have close vendor relationship programs with the majority of our key raw material suppliers.

Although we generally do not have long-term supply contracts, thus far we have not experienced any significant problems in obtaining adequate raw materials.

We have close vendor relationship programs with our key raw material distributors and tier one supplier partners.

Although we generally do not have long-term supply contracts, thus far we have not experienced any significant problems in obtaining adequate raw materials without such contracts.

Macro-supply chain constraints continue, especially for electronic components, and are not unique to MSA.

We continue to navigate these supply chain issues.

Please refer to MSA's Form SD filed on May 27, 2021 for further information on our conflict minerals analysis.

8 unchanged sentences

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.

The Company maintains a global Environmental, Health and Safety Management System, deploys a variety of programs to reduce and eliminate injuries and promote safety and regularly measures the progress of 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.

Response to novel coronavirus (COVID-19) —MSA has continued to respond to people-related challenges resulting from the pandemic.

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

Among other efforts, this includes 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, at no cost to them.

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

Diversity and Inclusion —Diversity and 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.

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

These groups 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.

The Company also maintains an Executive Diversity Council and several regional councils focused on increasing organizational awareness, accountability and impact of Diversity and Inclusion initiatives.

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.

workforce self-identifies as diverse.

This includes women who comprise approximately 41% of our U.S.

2 unchanged sentences

government, compiled as of December 31, 2021.

We count a female minority employee as one individual.

We count a diverse woman 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.

First, our "MOVE" (Meaningful, Ongoing, Vital Exchanges) Performance Management philosophy is a core element of associate engagement.

Exchanges 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.

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.

13 unchanged sentences

Government-related sales tend to increase in the fourth quarter.

Americas sales tend to be strong during the oil and gas market turnaround seasons late in the first quarter, early in the second quarter and then again at the end of the third quarter and beginning of the fourth quarter.

Americas segment sales tend to be strong during the oil and gas market turnaround seasons late in the first quarter, early in the second quarter and then again at the end of the third quarter and beginning of the fourth quarter.

International segment sales are typically weaker for the Europe region in the summer holiday months of July and August and seasonality can be affected by the timing of delivery of larger orders.

Invoicing and the delivery of larger orders can affect sales patterns variably across all reporting segments.

Invoicing and the delivery of larger orders can affect sales patterns variably across all reportable segments.

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

4 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