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We are exposed to certain market risks arising from transactions we have entered into in the normal course of business.
−Removed: These risks primarily relate to fluctuations in market conditions, commodity prices, foreign currency transactions and interest rates.
−Removed: We are exposed to general market risk and its potential impact on accounts receivable, costs and estimated earnings in excess of billings on uncompleted contracts.
−Removed: The amounts recorded may be at risk if our customers’ ability to pay these obligations is negatively impacted by economic conditions.
−Removed: Our customers are typically in the oil and gas and petrochemical markets, which include onshore and offshore production, LNG facilities and terminals, pipelines, refineries and petrochemical plants.
−Removed: Additional markets include electric utility and light rail traction power as well as mining and metals, pulp and paper and other municipal, commercial and industrial markets.
−Removed: Occasionally, our customers may include an EPC firm which may increase our market risk exposure based on the business climate of the EPC firm.
−Removed: We maintain ongoing discussions with customers regarding contract status with respect to payment status, change orders and billing terms in an effort to monitor collections of amounts billed.
+Added: These risks primarily relate to fluctuations in commodity prices, foreign currency transactions and interest rates.
Commodity Price Risk
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We attempt to pass along such commodity price increases to our customers on a contract-by-contract basis to avoid a negative effect on our gross margin.
−Removed: During Fiscal 2022, we entered into a derivative contract to hedge a portion of our exposure to commodity price risk.
−Removed: This contract was immaterial for both Fiscal 2022 and Fiscal 2023, and ended in June 2023.
+Added: We enter into derivative contracts to hedge a portion of our exposure to commodity price risk.
+Added: These contracts were immaterial to our earnings and cash flows for Fiscal 2024, 2023 and 2022.
In the future, we may enter into additional derivative contracts to further hedge our exposure to commodity price risk.
−Removed: We continue to experience price volatility with some of our key raw materials and components.
−Removed: Fixed-price contracts may limit our ability to pass cost increases to our customers, thus negatively impacting our earnings.
−Removed: Fluctuations in commodity prices may have a material impact on our future earnings and cash flows.
+Added: Even though we continue to experience price volatility with some of our key raw materials and components, with the consideration of our hedging strategy, we believe our exposure to commodity price risk is minimal.
Foreign Currency Transaction Risk
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Additionally, expenses associated with these transactions are generally contracted and paid for in the same local currencies.
−Removed: For Fiscal 2023, our realized foreign exchange loss was $0.4 million and is included in selling, general and administrative expenses in our Consolidated Statements of Operations.
+Added: Our realized foreign exchange loss was $0.8 million and $0.4 million, respectively for Fiscal 2024 and Fiscal 2023.
+Added: These losses were included in selling, general and administrative expenses in our Consolidated Statements of Operations.
+Added: From time to time, our foreign subsidiaries may enter into foreign exchange forward contracts to hedge their foreign currency exposures, if any.
+Added: These contracts were insignificant to our earnings and cash flows for Fiscal 2024, 2023 and 2022.
+Added: We do not typically hedge our exposure to potential foreign currency translation adjustments.
Our accumulated other comprehensive loss, which is included as a component of stockholders’ equity, was $24.4 million as of September 30, 2024, a decrease of $2.5 million compared to September 30, 2023.
This decrease in comprehensive loss was primarily a result of fluctuations in the currency exchange rates for the Canadian Dollar and British Pound Sterling as we re-measured the foreign operations of those divisions.
−Removed: We do not typically hedge our exposure to potential foreign currency translation adjustments.
Interest Rate Risk
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Revolver, we will be subject to market risk resulting from changes in interest rates related to our floating rate bank credit facility.
−Removed: If we were to make such borrowings, a hypothetical 100 basis point increase in variable interest rates may result in a material impact on our financial statements.
Because we did not have any outstanding borrowings under our U.S.
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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.