What changed in this filing

/stocks — the workspaceLOADING

Item 1A. Risk Factors

2022-07-28 compared with 2022-04-29 · 34 added, 2 removed, 25 unchanged (59% of the section changed)

9 unchanged sentences

In most instances the products at issue were manufactured many years ago and are not currently offered for sale, but in some instances, product liability claims may relate to current products.

Our subsidiary, Mine Safety Appliances Company, LLC (“MSA LLC”) was named as a defendant in 1,691 cumulative trauma lawsuits comprised of 4,595 claims at March 31, 2022.

Our subsidiary, Mine Safety Appliances Company, LLC (“MSA LLC”) was named as a defendant in 1,690 cumulative trauma lawsuits comprised of 4,660 claims at June 30, 2022.

Cumulative trauma product liability claims involve exposures to harmful substances (e.g., silica, asbestos and coal dust) that occurred years ago and may have developed over long periods of time into diseases such as silicosis, asbestosis, mesothelioma or coal worker’s pneumoconiosis.

8 unchanged sentences

In the normal course of business, MSA LLC makes payments to settle these types of cumulative trauma product liability claims and for related defense costs, and records receivables for the amounts believed to be recoverable under insurance.

MSA LLC has recorded insurance receivables totaling $126.4 million and notes receivables of $48.8 million at March 31, 2022.

MSA LLC has recorded insurance receivables totaling $126.4 million and notes receivables of $49.1 million at June 30, 2022.

Since MSA LLC is now largely self-insured for cumulative trauma claims, additional amounts recorded as insurance receivables will be limited.

3 unchanged sentences

These factors, and the potential for future insurer insolvencies, could affect the timing and amount of receivables actually collected in any given period or in total.

We have significant international operations and are subject to the risks of doing business in foreign countries and global supply chains.

We have business operations in approximately 40 foreign countries.

In 2021, approximately half of our net sales were made by operations located outside the United States.

We also rely on global supply chains or otherwise source critical components and raw materials from suppliers based in foreign countries, which at times are used in manufacturing operations across our global footprint.

In certain cases, components could be sole sourced or otherwise not easily substituted due to the highly regulated nature of our products.

Therefore, our operations and sourcing strategies are subject to supply shortages, sourcing delays, or disruption due to various geopolitical, economic, disasters, and other risks and uncertainties, which could have a material adverse effect on our business.

These risks include the following:

• Scarcity of parts and components necessary to manufacture our products;

• unexpected changes in regulatory requirements;

• changes in trade policy or tariff regulations;

• changes in tax laws and regulations;

• unintended consequences due to changes to the Company's legal structure;

• additional valuation allowances on deferred tax assets due to an inability to generate sufficient profit in certain foreign jurisdictions;

• intellectual property protection difficulties or intellectual property theft;

• difficulty in collecting accounts receivable;

• complications in complying with a variety of foreign laws and regulations, some of which may conflict with U.S.

• foreign privacy laws and regulations;

• trade protection measures and price controls;

• trade sanctions and embargoes;

• nationalization and expropriation;

• increased international instability, potential instability of foreign governments or impacts from geopolitical conflict such as supplier or transportation disruptions;

• effectiveness of worldwide compliance with MSA's anti-bribery policy, the U.S.

Foreign Corrupt Practices Act, and similar local laws;

• difficulty in hiring and retaining qualified employees;

• the ability to effectively negotiate with labor unions in foreign countries;

• the need to take extra security precautions for our international operations;

• costs and difficulties in managing culturally and geographically diverse international operations;

• pandemics, severe weather events, or other disasters;

• risks associated with the United Kingdom's decision to exit the European Union, including disruptions to trade and free movement of goods, services and people to and from the United Kingdom;

increased foreign exchange volatility with respect to the British pound;

and additional legal and economic uncertainty.

Any one or more of these risks could have a negative impact on the success of our international operations and, thereby, have a material adverse effect our business, consolidated results of operations and financial condition.

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-Q

Item 1A. Risk Factors