1 unchanged sentence
As we operate in a continuously changing environment, other risk factors may emerge which could have a material adverse effect on our results of operations, financial condition and cash flow.
−Removed: Risk Factors Related to the COVID-19 Pandemic
−Removed: The COVID-19 pandemic has adversely affected our business and operations.
−Removed: The COVID-19 pandemic has adversely affected our business and operations and the business and operations of our customers.
−Removed: We have experienced unpredictable reductions in demand for our services.
−Removed: In response to the COVID-19 pandemic, companies within the oil and natural gas and other industries (including our customers) have announced spending cuts and/or project delays which, in turn, have resulted in decreased awards of new contracts or adjustments, reductions, suspensions or cancellations of existing contracts.
−Removed: Such continued delays have impacted our business, results of operations and financial condition.
−Removed: The ongoing pandemic has also resulted in disruptions to labor and global supply chains, which have led to labor shortages and higher prices for some of the materials we need to run our business, including, but not limited to, structural steel, steel piping, rebar, valves, copper, and delivery freight.
−Removed: We have been proactive with managing our workforce and procurement processes to help reduce the impacts of labor shortages and rising materials prices on our business and to help ensure we continue to have the labor and materials we need available.
−Removed: However, rising prices and the potential for labor and materials shortages have created additional risk into bidding and executing work profitably.
−Removed: Because the duration of the COVID-19 pandemic and its economic consequences are uncertain, rapidly changing and difficult to predict, the impact on our business, financial condition and results of operations remains uncertain.
−Removed: While we expect the COVID-19 pandemic to have an adverse effect on our business, financial condition, liquidity, cash flow and results of operations, we are unable to predict the extent, nature or duration of these impacts at this time.
−Removed: Financial Risks
−Removed: Our borrowing capacity under our Credit Agreement is determined by the size of our borrowing base and if the size of our borrowing base does not provide adequate liquidity, then we may need to raise additional capital in the future for working capital, capital expenditures and/or acquisitions, and we may not be able to do so on favorable terms or at all, which would impair our ability to operate our business or achieve our strategic plan.
−Removed: Cash and cash equivalents on hand at June 30, 2021 totaled $83.9 million.
−Removed: Management believes it has sufficient cash on hand and will generate sufficient cash from operations to fund the business.
−Removed: However, should we require additional liquidity, there is risk that we will be unable access the amount of additional liquidity needed from our Credit Agreement if the level of assets included in the borrowing base is insufficient.
−Removed: The borrowing base includes restricted cash plus a percentage of the value of certain accounts receivable, inventory and equipment, reduced for certain reserves.
−Removed: To the extent that cash on hand, cash flow from operations, and borrowing availability under the Credit Agreement are insufficient to make future investments, or provide needed working capital, we may require additional financing from other sources.
−Removed: Our ability to obtain such additional financing in the future will depend in part upon prevailing capital market conditions, as well as conditions in our business and our operating results;
−Removed: and those factors may affect our efforts to arrange additional financing on terms that are satisfactory to us.
−Removed: If adequate funds are not available, or are not available on acceptable terms, we may not be able to make future investments or respond to competitive challenges.
−Removed: Our Credit Agreement imposes restrictions that may limit business alternatives.
−Removed: Our Credit Agreement prohibits or limits us from making acquisitions, repurchasing equity, incurring additional debt, acquiring or disposing of assets, or making other distributions, including cash dividends.
−Removed: In addition, our Credit Agreement requires that we comply with a Fixed Charge Coverage Ratio financial covenant under certain conditions.
−Removed: These covenants and restrictions may impact our ability to effectively execute operating and strategic plans and our operating performance may not be sufficient to comply with the required covenants.
−Removed: Our failure to comply with one or more of the covenants in our Credit Agreement could result in an event of default.
−Removed: We can provide no assurance that a default could be remedied, or that our creditors would grant a waiver or further amend the terms of the Credit Agreement.
Risk Factors Related to Our Business and Operations
−Removed: Unsatisfactory safety performance may subject us to penalties, affect customer relationships, result in higher operating costs, negatively impact employee morale and result in higher employee turnover.
−Removed: Our projects are conducted at a variety of sites including construction sites and industrial facilities.
−Removed: With each location, hazards are part of the day-to-day exposures that we must manage on a continuous basis to ensure our employees return home from work the same way they arrived.
−Removed: We understand that everyone plays a role with safety and everyone can make a difference with their active participation.
−Removed: With our proactive approach, our strategy is to identify the exposures and correct them before they result in an incident whether that involves an injury, damage or destruction of property, plant and equipment or an environmental impact.
−Removed: We are intensely focused on maintaining a strong safety culture and strive for zero incidents.
−Removed: Although we have taken what we believe are appropriate precautions to adequately train and equip our employees, we have experienced serious accidents, including fatalities, in the past and may experience additional accidents in the future.
−Removed: Serious accidents may subject us to penalties, civil litigation or criminal prosecution.
−Removed: Claims for damages to persons, including claims for bodily injury or loss of life, could result in costs and liabilities, which could materially and adversely affect our financial condition, results of operations or cash flows.
−Removed: Poor safety performance could also jeopardize our relationships with our customers and increase our insurance premiums.
+Added: Our results of operations depend upon the award of new contracts and the timing of those awards.
+Added: Our revenue is derived primarily from contracts awarded on a project-by-project basis.
+Added: Generally, it is difficult to predict whether and when we will be awarded a new contract due to lengthy and complex bidding and selection processes, changes in existing or forecasted market conditions, customers' access to financing, governmental regulations, permitting and environmental matters.
+Added: Because our revenue are derived from contract awards, our results of operations and cash flows can fluctuate materially from period to period.
+Added: The uncertainty associated with the timing of contract awards may reduce our short-term profitability as we balance our current capacity with expectations of future contract awards.
+Added: If an expected contract award is delayed or not received, we could incur costs to maintain an idle workforce that may have a material adverse effect on our results of operations.
+Added: Alternatively, we may decide that our long-term interests are best served by reducing our workforce and incurring increased costs associated with severance and termination benefits, which also could have a material adverse effect on our results of operations in the period incurred.
+Added: Reducing our workforce could also impact our results of operations if we are unable to adequately staff projects that are awarded subsequent to a workforce reduction.
+Added: Demand for our products and services is cyclical and is vulnerable to the level of capital and maintenance spending of our customers and to downturns in the industries and markets we serve, as well as conditions in the general economy.
+Added: The demand for our products and services depends upon the existence of construction and maintenance projects primarily in the energy markets, including LNG, hydrogen, renewable energy, midstream and downstream petroleum, and other heavy industries in the United States and Canada.
+Added: Therefore, it is likely that our business will continue to be cyclical in nature and vulnerable to general downturns in the United States, Canadian and world economies and negative changes in commodity and energy prices, which could adversely affect the demand for our products and services.
+Added: The availability of engineering and construction projects is dependent upon economic conditions and the outlook for renewable energy, hydrogen, natural gas, oil, petrochemical, industrial, and power industries, and specifically, the level of capital expenditures on energy infrastructure.
+Added: Our failure to obtain projects, the delay of project awards, the cancellation of projects or delays in the execution of contracts has resulted and may continue to result in under-utilization of our resources, which could adversely impact our revenue, margins, operating results and cash flow.
+Added: There are numerous factors beyond our control that influence the level of maintenance and capital expenditures of our customers, including:
+Added: • the demand for alternative and renewable energy products, including hydrogen;
+Added: • ability and demand to export LNG and other hydrocarbon products;
+Added: • the demand for natural gas, oil and electricity;
+Added: • current or projected commodity prices, including natural gas, oil, power and mineral prices;
+Added: • refining margins;
+Added: • the ability of energy and industrial companies to generate, access and deploy capital;
+Added: • interest rates;
+Added: • technological challenges and advances;
+Added: • tax incentives, including those for alternative energy projects;
+Added: • regulatory restraints on the rates that power companies may charge their customers;
+Added: • local, national and international political and economic conditions.
Our profitability could be negatively impacted if we are not able to maintain appropriate utilization of our workforce.
9 unchanged sentences
An inability to attract and retain qualified personnel, and in particular, engineers, project managers, and skilled craft workers, could impact our ability to perform on our contracts, which could harm our business and impair our future revenue and profitability.
−Removed: We initiated workforce reductions during the COVID-19 pandemic as demand for our services declined.
−Removed: Once the demand for our services increases, our ability to attract and retain qualified engineers, project managers, skilled craftsmen and other experienced professionals in accordance with our need will be an important factor in our ability to maintain profitability and grow our business.
+Added: Our ability to attract and retain qualified engineers, project managers, skilled craftsmen and other experienced professionals in accordance with our need is an important factor in our ability to maintain profitability and grow our business.
The market for these professionals is competitive, particularly during periods of economic growth when the supply is limited.
10 unchanged sentences
• determining and documenting claims by us for increased costs incurred due to the failure of customers, subcontractors and other third-party suppliers of equipment and materials to perform on a timely basis and in accordance with contract terms.
−Removed: Our results of operations depend upon the award of new contracts and the timing of those awards.
−Removed: Our revenue is derived primarily from contracts awarded on a project-by-project basis.
−Removed: Generally, it is difficult to predict whether and when we will be awarded a new contract due to lengthy and complex bidding and selection processes, changes in existing or forecasted market conditions, customers' access to financing, governmental regulations, permitting and environmental matters.
−Removed: Because our revenue are derived from contract awards, our results of operations and cash flows can fluctuate materially from period to period.
−Removed: The uncertainty associated with the timing of contract awards may reduce our short-term profitability as we balance our current capacity with expectations of future contract awards.
−Removed: If an expected contract award is delayed or not received, we could incur costs to maintain an idle workforce that may have a material adverse effect on our results of operations.
−Removed: Alternatively, we may decide that our long-term interests are best served by reducing our workforce and incurring increased costs associated with severance and termination benefits, which also could have a material adverse effect on our results of operations in the period incurred.
−Removed: Reducing our workforce could also impact our results of operations if we are unable to adequately staff projects that are awarded subsequent to a workforce reduction.
−Removed: Demand for our products and services is cyclical and is vulnerable to the level of capital and maintenance spending of our customers and to downturns in the industries and markets we serve, as well as conditions in the general economy.
−Removed: The demand for our products and services depends upon the existence of construction and maintenance projects primarily in the midstream and downstream petroleum, power and other heavy industries in the United States and Canada.
−Removed: Therefore, it is likely that our business will continue to be cyclical in nature and vulnerable to general downturns in the United States, Canadian and world economies and negative changes in commodity prices, which could adversely affect the demand for our products and services.
−Removed: The availability of engineering and construction projects is dependent upon economic conditions in the oil, natural gas, petrochemical, industrial, and power industries, and specifically, the level of capital expenditures on energy infrastructure.
−Removed: A prolonged period of relatively low commodity prices in North America has had an adverse impact on the level of capital expenditures of our customers and/or their ability to finance these expenditures.
−Removed: Our failure to obtain projects, the delay of project awards, the cancellation of projects or delays in the execution of contracts has resulted and may continue to result in under-utilization of our resources, which could adversely impact our revenue, margins, operating results and cash flow.
−Removed: There are numerous factors beyond our control that influence the level of maintenance and capital expenditures of our customers, including:
−Removed: • current or projected commodity prices, including oil, natural gas, power and mineral prices;
−Removed: • the demand for alternative energy products;
−Removed: • refining margins;
−Removed: • the demand for oil, natural gas and electricity;
−Removed: • the ability of oil, natural gas, industrial and power companies to generate, access and deploy capital;
−Removed: • exploration, production and transportation costs;
−Removed: • interest rates;
−Removed: • the discovery rate, size and location of new oil and natural gas reserves;
−Removed: • technological challenges and advances;
−Removed: • ability to export hydrocarbon products;
−Removed: • tax incentives, including those for alternative energy projects;
−Removed: • regulatory restraints on the rates that power companies may charge their customers;
−Removed: • local, national and international political and economic conditions.
−Removed: The volume of storage related projects is influenced by the overall forward market for crude oil, and certain market conditions may adversely affect financial and operating results.
−Removed: Our results may be influenced by the overall forward market for crude oil.
−Removed: A “contango” market (meaning that the price of crude oil for future delivery is higher than the current price) is associated with greater demand for crude oil storage capacity, because a party can simultaneously purchase crude oil at current prices for storage and sell at higher prices for future delivery.
−Removed: A “backwardated” market (meaning that the price of crude oil for future delivery is lower than the current price) is associated with lower demand for crude oil storage capacity, because a party can capture a premium for prompt delivery of crude oil rather than storing it for future sale.
−Removed: A prolonged backwardated market or other adverse market conditions could have an adverse impact on demand for new storage related construction.
−Removed: Finally, higher absolute levels of crude oil prices increase the costs of financing and insuring crude oil in storage, which negatively affects storage economics.
−Removed: As a result, the overall forward market for crude oil may have an adverse effect on our business, results of operations and financial condition.
+Added: The loss of one or more of our significant customers could adversely affect us.
+Added: One or more customers have in the past and may in the future contribute a material portion of our revenue in any one year.
+Added: Because these significant customers generally contract with us for specific projects or for specific periods of time, we may lose these customers from year to year as the projects or maintenance contracts are completed.
+Added: The loss of business from any one of these customers could have a material adverse effect on our business or results of operations.
+Added: Our backlog is subject to unexpected fluctuations, adjustments and cancellations and does not include the full value of our long-term maintenance contracts, and therefore, may not be a reliable indicator of our future earnings.
+Added: Backlog may not be a reliable indicator of our future performance.
+Added: We cannot guarantee that the revenue projected in our backlog will be realized or profitable.
+Added: Projects may remain in our backlog for an extended period of time.
+Added: In addition, project cancellations or scope adjustments may occur from time to time with respect to contracts included in our backlog that could reduce the dollar amount of our backlog and the revenue and profits that we actually earn.
+Added: Many of our contracts have termination rights.
+Added: Therefore, project adjustments may occur from time to time to contracts in our backlog.
The terms of our contracts could expose us to unforeseen costs and costs not within our control, which may not be recoverable and could adversely affect our results of operations and financial condition.
16 unchanged sentences
We can provide no assurance that we will be successful in obtaining, through negotiation, arbitration, litigation or otherwise, approved change orders in an amount adequate to compensate us for our additional work or expenses.
−Removed: Domestic and Foreign trade tariffs could raise the price and reduce the availability of raw materials to us, which could negatively impact our operating results and financial condition.
−Removed: Domestic and foreign trade tariffs could raise the price and reduce the availability of raw materials such as steel plate and steel pipe, which are key materials used by us.
−Removed: Supplies of these materials are available throughout the United States and globally from numerous sources.
−Removed: We anticipate that adequate amounts of these materials will be available in the foreseeable future.
−Removed: However, if trade tariffs should significantly impact the price and availability of these materials, we could experience lower gross margins, operational inefficiencies and project delays.
−Removed: We are exposed to credit risk from customers.
−Removed: If we experience delays and/or defaults in customer payments, we could suffer liquidity problems or we could be unable to recover amounts owed to us.
−Removed: Under the terms of our contracts, at times we commit resources to customer projects prior to receiving payments from customers in amounts sufficient to cover expenditures on these projects as they are incurred.
−Removed: Many of our fixed-price or cost-plus contracts require us to satisfy specified progress milestones or performance standards in order to receive a payment.
−Removed: Under these types of arrangements, we may incur significant costs for labor, equipment and supplies prior to receipt of payment.
−Removed: If the customer fails or refuses to pay us for any reason, there is no assurance we will be able to collect amounts due to us for costs previously incurred.
−Removed: In some cases, we may find it necessary to terminate subcontracts with suppliers engaged by us to assist in performing a contract, and we may incur costs or penalties for canceling our commitments to them.
−Removed: Delays in customer payments require an investment in working capital.
−Removed: If we are unable to collect amounts owed to us under our contracts, we may be required to record a charge against previously recognized earnings related to the project, and our liquidity, financial condition and results of operations could be adversely affected.
−Removed: Our backlog is subject to unexpected fluctuations, adjustments and cancellations and does not include the full value of our long-term maintenance contracts, and therefore, may not be a reliable indicator of our future earnings.
−Removed: Backlog may not be a reliable indicator of our future performance.
−Removed: We cannot guarantee that the revenue projected in our backlog will be realized or profitable.
−Removed: Projects may remain in our backlog for an extended period of time.
−Removed: In addition, project cancellations or scope adjustments may occur from time to time with respect to contracts included in our backlog that could reduce the dollar amount of our backlog and the revenue and profits that we actually earn.
−Removed: Many of our contracts have termination rights.
−Removed: Therefore, project adjustments may occur from time to time to contracts in our backlog.
−Removed: The loss of one or more of our significant customers could adversely affect us.
−Removed: One or more customers have in the past and may in the future contribute a material portion of our revenue in any one year.
−Removed: Because these significant customers generally contract with us for specific projects or for specific periods of time, we may lose these customers from year to year as the projects or maintenance contracts are completed.
−Removed: The loss of business from any one of these customers could have a material adverse effect on our business or results of operations.
Our business may be affected by difficult work sites and environments, which may adversely affect our overall business.
14 unchanged sentences
The frequency and severity of severe weather conditions may be enhanced by present and future changes to our climate.
+Added: Our business has been affected by inflation, supply chain disruptions and shortages of materials and labor.
+Added: Following the onset of the pandemic and with the ongoing conflict between Ukraine and Russia in Europe, there has been a high degree of volatility in commodity and energy markets that affect our client's businesses.
+Added: In addition, inflation in the United States has reached multi-decade highs and has been increasing since the beginning of the fiscal year.
+Added: In some cases we have had to bid more competitively than before to win work, which has compressed margins somewhat given the higher inflation.
+Added: It is uncertain how this market environment will impact our business, both positively or negatively.
+Added: Domestic and foreign trade tariffs could raise the price and reduce the availability of raw materials to us, which could negatively impact our operating results and financial condition.
+Added: Domestic and foreign trade tariffs could raise the price and reduce the availability of raw materials such as steel plate and steel pipe, which are key materials used by us.
+Added: Supplies of these materials are available throughout the United States and globally from numerous sources.
+Added: We anticipate that adequate amounts of these materials will be available in the foreseeable future.
+Added: However, if trade tariffs should significantly impact the price and availability of these materials, we could experience lower gross margins, operational inefficiencies and project delays.
+Added: Unsatisfactory safety performance may subject us to penalties, affect customer relationships, result in higher operating costs, negatively impact employee morale and result in higher employee turnover.
+Added: Our projects are conducted at a variety of sites including construction sites and industrial facilities.
+Added: With each location, hazards are part of the day-to-day exposures that we must manage on a continuous basis to ensure our employees return home from work the same way they arrived.
+Added: We understand that everyone plays a role with safety and everyone can make a difference with their active participation.
+Added: With our proactive approach, our strategy is to identify the exposures and correct them before they result in an incident whether that involves an injury, damage or destruction of property, plant and equipment or an environmental impact.
+Added: We are intensely focused on maintaining a strong safety culture and strive for zero incidents.
+Added: Although we have taken what we believe are appropriate precautions to adequately train and equip our employees, we have experienced serious accidents, including fatalities, in the past and may experience additional accidents in the future.
+Added: Serious accidents may subject us to penalties, civil litigation or criminal prosecution.
+Added: Claims for damages to persons, including claims for bodily injury or loss of life, could result in costs and liabilities, which could materially and adversely affect our financial condition, results of operations or cash flows.
+Added: Poor safety performance could also jeopardize our relationships with our customers and increase our insurance premiums.
+Added: We are exposed to credit risk from customers.
+Added: If we experience delays and/or defaults in customer payments, we could suffer liquidity problems or we could be unable to recover amounts owed to us.
+Added: Under the terms of our contracts, at times we commit resources to customer projects prior to receiving payments from customers in amounts sufficient to cover expenditures on these projects as they are incurred.
+Added: Many of our fixed-price or cost-plus contracts require us to satisfy specified progress milestones or performance standards in order to receive a payment.
+Added: Under these types of arrangements, we may incur significant costs for labor, equipment and supplies prior to receipt of payment.
+Added: If the customer fails or refuses to pay us for any reason, there is no assurance we will be able to collect amounts due to us for costs previously incurred.
+Added: In some cases, we may find it necessary to terminate subcontracts with suppliers engaged by us to assist in performing a contract, and we may incur costs or penalties for canceling our commitments to them.
+Added: Delays in customer payments require an investment in working capital.
+Added: If we are unable to collect amounts owed to us under our contracts, we may be required to record a charge against previously recognized earnings related to the project, and our liquidity, financial condition and results of operations could be adversely affected.
We contribute to multiemployer plans that could result in liabilities to us if those plans are terminated or if we withdraw from those plans.
2 unchanged sentences
The Employee Retirement Income Security Act of 1974, as amended by the Multiemployer Pension Plan Amendments Act of 1980, imposes certain liabilities upon employers who are contributors to a multiemployer plan in the event of the employer’s withdrawal from, or upon termination of, such plan.
−Removed: In fiscal 2021, we incurred withdrawal liability to one multiemployer plan due to our strategic initiative to exit the domestic iron and steel industry .
If we terminate, withdraw, or partially withdraw from other multiemployer pension plans, we could be required to make significant cash contributions to fund that plan's unfunded vested benefit, which could materially and adversely affect our financial condition and results of operations;
19 unchanged sentences
We strengthened our identity and access management capabilities by requiring multi-factor authentication, increased the threat detection efficiencies within our security information and event management capacity, and completed projects designed to reduce our organization's external attack surface.
−Removed: In addition, in the area of security awareness and training, we have updated our foundational curriculum, established mandatory recurring training requirements, and commenced periodic phishing campaign assessments.
+Added: In addition, in the area of security awareness
+Added: and training, we have updated our foundational curriculum, established mandatory recurring training requirements, and commenced periodic phishing campaign assessments.
We rely on internally and externally developed software applications and systems to support critical functions including project management, estimating, scheduling, human resources, accounting, and financial reporting.
3 unchanged sentences
Software vendors may decide to discontinue further development, integration or long-term software maintenance support for our information systems, in which case we may need to abandon one or more of our current information systems and migrate some or all of our project management, human resources, estimating, scheduling, accounting and financial information to other systems, thus increasing our operational expense as well as disrupting the management of our business operations.
+Added: Financial Risks
+Added: Our borrowing capacity under our Credit Agreement is determined by the size of our borrowing base and if the size of our borrowing base does not provide adequate liquidity, then we may need to raise additional capital in the future for working capital, capital expenditures and/or acquisitions, and we may not be able to do so on favorable terms or at all, which would impair our ability to operate our business or achieve our strategic plan.
+Added: Management believes it has sufficient cash on hand and will generate sufficient cash from operations to fund the business.
+Added: However, should we require additional liquidity, there is risk that we will be unable access the amount of additional liquidity needed from our Credit Agreement if the level of assets included in the borrowing base is insufficient.
+Added: The borrowing base includes restricted cash plus a percentage of the value of certain accounts receivable, inventory and equipment, reduced for certain reserves.
+Added: To the extent that cash on hand, cash flow from operations, and borrowing availability under the Credit Agreement are insufficient to make future investments, or provide needed working capital, we may require additional financing from other sources.
+Added: Our ability to obtain such additional financing in the future will depend in part upon prevailing capital market conditions, as well as conditions in our business and our operating results;
+Added: and those factors may affect our efforts to arrange additional financing on terms that are satisfactory to us.
+Added: If adequate funds are not available, or are not available on acceptable terms, we may not be able to make future investments or respond to competitive challenges.
+Added: Our Credit Agreement imposes restrictions that may limit business alternatives.
+Added: Our Credit Agreement prohibits or limits us from making acquisitions, repurchasing equity, incurring additional debt, acquiring or disposing of assets, or making other distributions, including cash dividends.
+Added: In addition, our Credit Agreement requires that we comply with a Fixed Charge Coverage Ratio financial covenant under certain conditions.
+Added: These covenants and restrictions may impact our ability to effectively execute operating and strategic plans and our operating performance may not be sufficient to comply with the required covenants.
+Added: Our failure to comply with one or more of the covenants in our Credit Agreement could result in an event of default.
+Added: We can provide no assurance that a default could be remedied, or that our creditors would grant a waiver or further amend the terms of the Credit Agreement.
Accounting Risks
Our use of percentage-of-completion accounting for fixed-price contracts and our reporting of profits for cost-plus contracts prior to contract completion could result in a reduction or elimination of previously reported profits.
−Removed: Our revenue are recognized using the percentage-of-completion method of accounting.
+Added: Revenue for fixed-price contracts is recognized using the percentage-of-completion method of accounting.
Under percentage-of-completion accounting, contract revenue and earnings are recognized ratably over the contract term based on the proportion of actual costs incurred to total estimated costs.
2 unchanged sentences
As a result, we may adjust our estimates on one or more occasions as a result of changes in cost estimates, change orders to the original contract, or claims against the customer for increased costs incurred by us due to customer-induced delays and other factors.
−Removed: If estimates of costs to complete fixed price contracts indicate a loss, a provision is made through a contract write-down for the total loss anticipated in the period the loss is determined.
+Added: If estimates of costs to complete fixed-price contracts indicate a loss, a provision is made to accrue the total loss anticipated in the period the loss is determined.
Contract profit estimates are also adjusted, on a percentage of completion basis, in the fiscal period in which it is determined that an adjustment is required.
2 unchanged sentences
As a result of the requirements of the percentage-of-completion method of accounting, the possibility exists that we could have estimated and reported a profit on a contract over several prior periods and later determine, as a result of additional information, that all or a portion of such previously estimated and reported profits were overstated.
−Removed: If this occurs, the full aggregate amount of the overstatement will be reported for the period in which such change in estimate occurs.
+Added: If this occurs, the full aggregate amount of the overstatement will be recognized in the period in which such change in estimate occurs.
Actual results could differ from the estimates and assumptions that we use to prepare our financial statements.
2 unchanged sentences
• contract costs and application of percentage-of-completion accounting;
−Removed: • provisions for uncollectible receivables from customers for invoiced amounts;
−Removed: • the amount and collectibility of unpriced change orders and claims against customers;
+Added: • provisions for uncollectable receivables from customers for invoiced amounts;
+Added: • the amount and collectability of unpriced change orders and claims against customers;
• provisions for income taxes and related valuation allowances;
24 unchanged sentences
Further, the rendering of our services on these projects could expose us to risks and claims by third parties and governmental agencies for personal injuries, property damage and environmental matters, among others.
−Removed: Any claim, regardless of its merit or eventual outcome, could result in substantial costs, divert management’s attention and create negative publicity, particularly for claims relating to environmental matters where the
−Removed: amount of the claim could be extremely large.
+Added: Any claim, regardless of its merit or eventual outcome, could result in substantial costs, divert management’s attention and create negative publicity, particularly for claims relating to environmental matters where the amount of the claim could be extremely large.
We may not be able to or may choose not to obtain or maintain insurance coverage for the types of claims described above.
18 unchanged sentences
It is impossible to predict the effect on us of any future changes to these laws and regulations.
−Removed: We can provide no absolute assurance that our operations will continue to comply with future laws and regulations or that the costs to comply with these laws and regulations and/or a failure to comply with these laws will not significantly adversely affect our business, financial condition and results of operations.
+Added: We can provide no absolute assurance that our operations will continue to comply with future laws and regulations
+Added: or that the costs to comply with these laws and regulations and/or a failure to comply with these laws will not significantly adversely affect our business, financial condition and results of operations.
Climate change legislation or regulations restricting emissions of “greenhouse gases” could result in reduced demand for our services and products.
27 unchanged sentences
The integration efforts may also impose substantial demands on our operations or other projects.
−Removed: We will have to actively strive to demonstrate to our existing customers that these integrations have not resulted in adverse changes in our standards or business focus.
+Added: We will have to actively strive to demonstrate to our existing customers that these integrations have not resulted in adverse changes
+Added: in our standards or business focus.
Our acquisitions have involved a significant capital commitment, and the return that we achieve on any capital invested may be less than the return achieved on our other projects or investments.
5 unchanged sentences
Even if we are able to integrate existing and acquired businesses successfully, this integration may not result in the realization of the full benefits of the growth opportunities, operating margins and synergies we currently expect within the anticipated time frame or at all.
−Removed: Accordingly, the benefits from an acquisition may be offset by
−Removed: costs incurred or delays in integrating the companies, which could cause our revenue assumptions and operating margin to be inaccurate.
+Added: Accordingly, the benefits from an acquisition may be offset by costs incurred or delays in integrating the companies, which could cause our revenue assumptions and operating margin to be inaccurate.
We face substantial competition in each of our business segments, which may have a material adverse effect on our business.
29 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.