What changed in this filing

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Item 1. Financial Statements

2024-08-08 compared with 2024-05-08 · 137 added, 62 removed, 466 unchanged (30% of the section changed)

4 unchanged sentences

Three Months Ended

Six Months Ended

Cost of Sales

17 unchanged sentences

Three Months Ended

Six Months Ended

Other Comprehensive Income:

8 unchanged sentences

(Dollars in thousands)

March 31, 2024

June 30, 2024

December 31, 2023

37 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash Flows From Operating Activities

14 unchanged sentences

Deferred revenues

Net Cash Provided By (Used In) Operating Activities

Net Cash Provided By Operating Activities

Cash Flows From Investing Activities

3 unchanged sentences

Revolving debt and bank overdrafts, net (Note 14)

Other debt repayments (Note 6)

Dividends paid

11 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

June 30, 2024

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading.

In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of March 31, 2024, its results of operations for the three months ended March 31, 2024 and 2023 and cash flows for the three months ended March 31, 2024 and 2023, have been included.

In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of June 30, 2024, its results of operations for the three and six months ended June 30, 2024 and 2023 and cash flows for the six months ended June 30, 2024 and 2023, have been included.

These financial statements and related footnotes should be read in conjunction with the financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (2023 Annual Report on Form 10-K).

RECONCILIATIONS OF EQUITY

Below are reconciliations of total equity for the three months ended March 31, 2024 and 2023:

Below are reconciliations of total equity for the three and six months ended June 30, 2024 and 2023:

(In thousands, except share and per share amounts)

1 unchanged sentence

Income (Loss)

Balance, March 31, 2024

Issuance of 2,456 shares of

common stock under incentive

compensation plan

Stock-based and deferred compensation

Other comprehensive income

Cash dividends paid:

Common stock ($ 0.375 per share)

Balance, June 30, 2024

(In thousands, except share and per share amounts)

Comprehensive

Income (Loss)

Balance, December 31, 2023

5 unchanged sentences

Common stock ($ 0.750 per share)

Balance, June 30, 2024

(In thousands, except share and per share amounts)

Comprehensive

Income (Loss)

Balance, March 31, 2023

Issuance of 6,791 shares of

common stock under incentive

compensation plan

Stock-based and deferred compensation

Other comprehensive income

Cash dividends paid:

Common stock ($ 0.365 per share)

Balance, June 30, 2023

(In thousands, except share and per share amounts)

5 unchanged sentences

Stock-based and deferred compensation

Other comprehensive income (loss)

Other comprehensive income

Cash dividends paid:

Common stock ($ 0.730 per share)

Balance, March 31, 2023

Balance, June 30, 2023

FAIR VALUE MEASUREMENTS

Derivative assets and liabilities include the foreign currency exchange and interest rate swap contracts discussed in Note 4, Derivative Instruments , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this

Fair value and carrying value were the same because the contracts were recorded at fair value.

1 unchanged sentence

The fair value of the interest rate swap was calculated as the difference between the contracted swap rate and the floating interest rate multiplied by the present value of the notional amount of the contract.

At March 31, 2024, and December 31, 2023 , the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $ 772,000 and $ 895,000 as of March 31, 2024 and December 31, 2023, respectively):

At June 30, 2024, and December 31, 2023 , the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $ 650,000 and $ 895,000 as of June 30, 2024 and December 31, 2023, respectively):

(In thousands)

Carrying value

The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of March 31, 2024, and December 31, 2023, and the level within the fair value hierarchy in which the fair value measurements fall:

The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of June 30, 2024, and December 31, 2023, and the level within the fair value hierarchy in which the fair value measurements fall:

(In thousands)

15 unchanged sentences

DERIVATIVE INSTRUMENTS

At March 31, 2024, and December 31, 2023 , the Company had open forward foreign currency exchange contracts to buy or sell foreign currencies with U.S.

At June 30, 2024, and December 31, 2023 , the Company had open forward foreign currency exchange contracts to buy or sell foreign currencies with U.S.

dollar equivalent amounts of $ 98,190,000 and $ 106,561,000 , respectively.

All forward foreign exchange contracts at March 31, 2024 had durations of one month to three months .

All forward foreign exchange contracts at June 30, 2024 , had durations of one month to three months .

The Company is currently exposed to volatility in short-term interest rates and has mitigated certain portions of that risk by using an interest rate swap.

The interest rate swap is recognized on the balance sheet as either an asset or a liability measured at fair value.

At March 31, 2024 , the Company held an interest rate swap contract with a notional value of $ 100,000,000 that was designated as a cash flow hedge.

At June 30, 2024 , the Company held an interest rate swap contract with a notional value of $ 100,000,000 that was designated as a cash flow hedge.

Period-to-period changes in the fair value of the interest rate swap are initially recognized as gains or losses in other comprehensive income.

1 unchanged sentence

The maturity date of the current interest swap contract is March 10, 2027 , which is closely aligned with the June 24, 2027 , maturity of the Company's revolving credit facility.

The fair values of the derivative instruments held by the Company on March 31, 2024, and December 31, 2023, are disclosed in Note 3, Fair Value Measurements , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

Derivative instrument gains and losses for the three months ended March 31, 2024 and 2023, were immaterial.

For amounts reclassified out of AOCI into earnings for the three months ended March 31, 2024 and 2023, see Note 11, Accumulated Other Comprehensive Income (Loss) , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

The fair values of the derivative instruments held by the Company on June 30, 2024, and December 31, 2023, are disclosed in Note 3, Fair Value Measurements , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

Derivative instrument gains and losses for the three and six months ended June 30, 2024 and 2023, were immaterial.

For amounts reclassified out of AOCI into earnings for the three and six months ended June 30, 2024 and 2023, see Note 11, Accumulated Other Comprehensive Income (Loss) , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

STOCK-BASED COMPENSATION

2 unchanged sentences

Three Months Ended

Six Months Ended

Unrecognized compensation costs for stock options, performance shares, RSUs and SARs were as follows:

3 unchanged sentences

The change in unrecognized compensation costs for stock options, performance shares, RSUs and SARs is due to new grants issued in 2024.

The Company granted the following awards in the first three months of 2024:

The Company granted the following awards in the first six months of 2024:

Stock options

Performance shares (at target) and RSUs

The unrecognized compensation costs at March 31, 2024 , are expected to be recognized over weighted-average periods of 2.2 years for stock options, 2.4 years for performance shares and RSUs and 2.1 years for SARs.

The composition of inventories at March 31, 2024, and December 31, 2023, was as follows:

The unrecognized compensation costs at June 30, 2024 , are expected to be recognized over weighted-average periods of 2.0 years for stock options, performance shares and RSUs and SARs.

The composition of inventories at June 30, 2024, and December 31, 2023, was as follows:

(In thousands)

5 unchanged sentences

Three Months Ended

Six Months Ended

Operating lease cost

8 unchanged sentences

for new operating lease liabilities

The following table outlines the maturities of lease liabilities as of March 31, 2024.

The following table outlines the maturities of lease liabilities as of June 30, 2024.

(In thousands)

Undiscounted Cash Flows:

2024 (excluding the three months ended March 31, 2024)

2024 (excluding the six months ended June 30, 2024)

Subsequent to 2028

8 unchanged sentences

Weighted-average discount rate-operating leases

As of March 31, 2024 , the Company had office equipment and automobile leases, valued at approximately $ 922,000 , that had not commenced.

These leases will commence during the second and third quarters of 2024 with lease terms ranging from three years to five years .

As of June 30, 2024 , the Company had an office equipment lease, valued at approximately $ 888,000 , that had not commenced.

The lease will commence during the third quarter of 2024 with a lease term of five years .

CONTINGENCIES

13 unchanged sentences

The level of annual expenditures for remedial, monitoring and investigatory activities will change in the future as major components of planned remediation activities are completed and the scope, timing and costs of existing activities are changed.

As of March 31, 2024 , the Company estimated a range of possible environmental losses and legal losses of $ 20,792,000 to $ 49,778,000 .

As of June 30, 2024 , the Company estimated a range of possible environmental losses and legal losses of $ 20,816,000 to $ 48,104,000 .

Within the range of possible environmental losses and legal losses, management has currently concluded that no single amount is more likely to occur than any other amounts in the range and, thus, has accrued at the lower end of the range.

These accruals totaled $ 20,792,000 at March 31, 2024 and $ 20,646,000 at December 31, 2023.

A lthough the Company believes that its estimated range of possible environmental losses and legal losses and its reserves are adequate for contingencies, it is possible, due to the uncertainties noted above, that additional reserves could be required in the future.

Cash expenditures related to environmental remediation and certain other legal matters approximated $ 1,585,000 and $ 3,466,000 for the three months ended March 31, 2024 and 2023, respectively.

These accruals totaled $ 20,816,000 at June 30, 2024 , and $ 20,646,000 at December 31, 2023.

A lthough the Company believes that its estimated range of possible environmental losses and legal losses and its reserves are adequate for contingencies, it is possible, due to uncertainties including those noted above, that additional reserves could be required in the future.

Cash expenditures related to environmental remediation and certain other legal matters approximated $ 1,982,000 and $ 8,882,000 for the six months ended June 30, 2024 and 2023, respectively.

For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions.

3 unchanged sentences

However, in the event of one or more adverse determinations with respect to such sites in any annual or interim period, the effect on the Company’s cash flows and results of operations for those periods could be material.

Following are summaries of the Company’s major contingencies at March 31, 2024:

Following are summaries of the Company’s major contingencies at June 30, 2024:

Maywood, New Jersey Site

24 unchanged sentences

The Company is contractually obligated to contribute up to five percent of the environmental response costs incurred by the current owner, with no limitation on the ultimate amount of contributions.

The Company has paid the current owner $ 3,778,000 for the Company’s portion of environmental response costs at the Wilmington site through March 31, 2024.

The Company has paid the current owner $ 3,841,000 for the Company’s portion of environmental response costs at the Wilmington site through June 30, 2024.

The Company has recorded a liability for its portion of the estimated remediation costs for the site.

1 unchanged sentence

On July 29, 2022, the Company and other potentially responsible parties were notified of a possible joint claim by federal and state trustees for alleged natural resource damages related to the Wilmington site.

The alleged damages may result in a range

of possible penalties and the Company recorded a liability for this matter during the first quarter of 2024.

The alleged damages may result in a range of possible penalties and the Company recorded a liability for this matter during the first quarter of 2024.

Depending on the ultimate resolution of this matter, the amount for which the Company is liable could differ materially from the current recorded liability.

18 unchanged sentences

Three Months Ended

Six Months Ended

Interest cost

5 unchanged sentences

Three Months Ended

Six Months Ended

Interest cost

6 unchanged sentences

Approximately $ 238,000 is expected to be paid to the unfunded non-qualified plans in 2024 .

Of such amount, $ 129,000 had been paid to the non-qualified plans as of March 31, 2024.

Of such amount, $ 181,000 had been paid to the non-qualified plans as of June 30, 2024.

The Company’s U.K.

4 unchanged sentences

retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan (profit sharing plan), and one non-qualified supplemental executive plan.

In the three months ended March 31, 2024 and 2023 , the Company made contributions into the qualified retirement plans for U.S.

In the six months ended June 30, 2024 and 2023 , the Company made contributions into the qualified retirement plans for U.S.

employees and for certain non-U.S.

8 unchanged sentences

Three Months Ended

Six Months Ended

Retirement savings contributions

7 unchanged sentences

The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciate and decrease when the value of the trust assets decline (i.e., supplemental plan income is recognized).

At March 31, 2024 , the balance of the trust assets was $ 559,000 , which equaled the balance of the supplemental plan liabilities.

At June 30, 2024 , the balance of the trust assets was $ 455,000 , which equaled the balance of the supplemental plan liabilities.

See the long-term investments section in Note 3, Fair Value Measurements , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q) for further information regarding the Company’s mutual fund assets.

EARNINGS PER SHARE

Below are the computations of basic and diluted earnings per share for the three months ended March 31, 2024 and 2023:

Below are the computations of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023:

(In thousands, except per share amounts)

Three Months Ended

Six Months Ended

Computation of Basic Earnings per Share

16 unchanged sentences

Diluted earnings per share

(1) 800,025 and 403,711 options/SARs to acquire shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three months ended March 31, 2024 and 2023, respectively.

(1) 899,151 and 849,588 options/SARs to acquire shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three and six months ended June 30, 2024 , respectively.

The options/SARs' exercise prices were greater than the average market price for the Company's common stock and inclusion of the instruments would have had an antidilutive effect on the computations of the earnings per share.

644,962 and 524,337 options/SARs to acquire shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three and six months ended June 30, 2023 , respectively.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Below is the change in the Company’s accumulated other comprehensive income (loss) (AOCI) balance by component (net of income taxes) for the three months ended March 31, 2024 and 2023:

Below is the change in the Company’s accumulated other comprehensive income (loss) (AOCI) balance by component (net of income taxes) for the three and six months ended June 30, 2024 and 2023:

(In thousands)

Balance at December 31, 2022

Balance at March 31, 2023

Other comprehensive income before

2 unchanged sentences

Net current-period other comprehensive income

Balance at June 30, 2023

Balance at March 31, 2024

Other comprehensive income before

reclassifications

Amounts reclassified from AOCI

Net current-period other comprehensive income

Balance at June 30, 2024

Balance at December 31, 2022

3 unchanged sentences

Net current-period other comprehensive income

Balance at March 31, 2024

Information regarding the reclassifications out of AOCI for the three months ended March 31, 2024 and 2023, is displayed below:

Balance at June 30, 2023

Balance at December 31, 2023

Other comprehensive income before

reclassifications

Amounts reclassified from AOCI

Net current-period other comprehensive income

Balance at June 30, 2024

Information regarding the reclassifications out of AOCI for the three and six months ended June 30, 2024 and 2023, is displayed below:

(In thousands)

2 unchanged sentences

Three Months Ended

Six Months Ended

Affected Line Item in

14 unchanged sentences

Surfactants, Polymers and Specialty Products.

Net sales by segment for the three months ended March 31, 2024 and 2023, were as follows:

Net sales by segment for the three and six months ended June 30, 2024 and 2023, were as follows:

(In thousands)

Three Months Ended

Six Months Ended

Segment Net Sales

Specialty Products

Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three months ended March 31, 2024 and 2023, are summarized below:

Segment operating income and reconciliations of segment operating income to income before provision for income taxes for the three and six months ended June 30, 2024 and 2023, are summarized below:

(In thousands)

Three Months Ended

Six Months Ended

Segment Operating Income

1 unchanged sentence

Segment operating income

Business restructuring

Business restructuring expense

Unallocated corporate expenses (1)

4 unchanged sentences

(1) Unallocated corporate expenses are primarily comprised of corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and are not used to evaluate segment performance.

Unallocated corporate expenses for the three and six months periods ended June 30, 2024 also include a $ 3,500,000 pre-tax charge related to a criminal social engineering scheme that impacted one of the Company's Asia subsidiaries.

See Note 17, Other Matter , below for detailed information about the charge.

REVENUE FROM CONTRACTS WITH CUSTOMERS

As of March 31, 2024 , the Company had $ 931,000 of contract liabilities and no contract assets.

As of June 30, 2024 , the Company had $ 481,000 of contract liabilities and no contract assets.

A contract liability would typically arise when an advance or deposit is received from a customer before the Company recognizes revenue.

1 unchanged sentence

When such situations do arise, the Company maintains a deferred revenue liability until the time a performance obligation has been satisfied.

The Company recognized $ 688,000 of revenue in the first three months of 2024 from pre-existing contract liabilities at December 31, 2023.

The Company recognized $ 688,000 of revenue in the first six months of 2024 from pre-existing contract liabilities at December 31, 2023.

In addition, during 2020, the Company recorded $ 10,709,000 of long-term deferred revenue associated with a payment received to defray the cost of capital expenditures necessary to service a customer’s future product needs.

At March 31, 2024 , $ 6,093,000 was classified as long-term and $ 2,216,000 was classified as short-term.

This deferred revenue is being recognized over the period of the contract and $ 2,400,000 of revenue has been recognized from the beginning of the contract term through March 31, 2024.

The tables below provide a geographic disaggregation of net sales for the three months ended March 31, 2024 and 2023.

At June 30, 2024 , $ 5,539,000 was classified as long-term and $ 2,216,000 was classified as short-term.

This deferred revenue is being recognized over the period of the contract and $ 2,954,000 of revenue has been recognized from the beginning of the contract term through June 30, 2024.

The tables below provide a geographic disaggregation of net sales for the three and six months ended June 30, 2024 and 2023.

The Company’s business disaggregation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors.

(In thousands)

For the Three Months Ended March 31, 2024

For the Three Months Ended June 30, 2024

Geographic Market

2 unchanged sentences

(In thousands)

For the Three Months Ended March 31, 2023

For the Three Months Ended June 30, 2023

Geographic Market

1 unchanged sentence

Latin America

At March 31, 2024 and December 31, 2023, debt was comprised of the following:

(In thousands)

For the Six Months Ended June 30, 2024

Geographic Market

North America

Latin America

(In thousands)

For the Six Months Ended June 30, 2023

Geographic Market

North America

Latin America

At June 30, 2024 and December 31, 2023, debt was comprised of the following:

(In thousands)

Senior unsecured notes

16 unchanged sentences

Long-term debt

The Company's long-term debt financing is comprised of certain senior unsecured notes issued to insurance companies in private placement transactions pursuant to note purchase agreements (the “Note Purchase Agreements”), totaling $ 359,942,000 as of March 31, 2024 .

These notes are denominated in U.S.

3 unchanged sentences

The Company's credit agreement (the "Credit Agreement") with a syndicate of banks provides for credit facilities in an initial aggregate principal amount of $ 450,000,000 , consisting of (a) a $ 350,000,000 multi-currency revolving credit facility and (b) a $ 100,000,000 delayed draw term loan credit facility, each of which matures on June 24, 2027 .

The Company maintains import letters of credit, and standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the revolving credit agreement.

As of March 31, 2024 , the Company had outstanding letters of credit totaling $ 10,979,000 and $ 280,000,000 of outstanding borrowings under the credit agreement, inclusive of a $ 93,750,000 delayed draw term loan ($ 6,250,000 of the term loan principal has been permanently repaid as scheduled).

There was $ 152,771,000 available under the credit agreement as of March 31, 2024.

The Company's credit agreement with Credit Industriel et Commercial NY (the CIC Credit Agreement) provides for a credit facility in an aggregate principal amount of $ 8,700,000 .

The facility is for the sole purpose of the issuance of standby letters of credit.

The Company maintains import and export letters of credit, and standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the Credit Agreement and under the CIC Credit Agreement.

As of June 30, 2024 , the Company had outstanding letters of credit totaling $ 11,747,000 and $ 313,280,000 of

outstanding borrowings under the Credit Agreement, inclusive of a $ 92,500,000 delayed draw term loan ($ 7,500,000 of the term loan principal has been permanently repaid as scheduled).

There was $ 117,473,000 available under the Credit Agreement as of June 30, 2024 .

As of June 30, 2024, the Company had an outstanding letter of credit of $ 8,694,000 under the CIC Credit Agreement.

The Company’s material debt agreements contain provisions which, among other covenants, require maintenance of certain financial ratios and place limitations on additional debt, investments and payment of dividends.

Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $ 240,735,000 and $ 234,399,000 at March 31, 2024 and December 31, 2023 , respectively.

Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $ 241,925,000 and $ 234,399,000 at June 30, 2024, and December 31, 2023 , respectively.

Other, net in the condensed consolidated statements of income included the following:

1 unchanged sentence

Three Months Ended

Foreign exchange losses

Six Months Ended

Foreign exchange gains (losses)

Investment income

2 unchanged sentences

NONCASH INVESTING AND FINANCING ACTIVITIES

Noncash investing activities included liabilities (accounts payable) incurred for property, plant and equipment expenditures of approximately $ 13,004,000 and $ 27,061,000 that were unpaid at March 31, 2024 and 2023 , respectively.

Noncash financing activities included the issuance of 98,146 shares of the Company’s common stock (valued at $ 8,808,000 ) and 88,497 shares of the Company’s common stock (valued at $ 9,607,000 ) under the Company’s equity incentive compensation plan during the three months ended March 31, 2024 and 2023 , respectively.

Noncash investing activities included liabilities (accounts payable) incurred for property, plant and equipment expenditures of approximately $ 9,003,000 and $ 24,101,000 that were unpaid at June 30, 2024 and 2023 , respectively.

Noncash financing activities included the issuance of 113,184 shares of the Company’s common stock (valued at $ 10,132,000 ) and 97,590 shares of the Company’s common stock (valued at $ 10,463,000 ) under the Company’s equity incentive compensation plan during the period ended June 30, 2024 and 2023 , respectively.

On July 18, 2024, the Company determined that one of its subsidiaries in Asia had been the victim of a criminal social engineering scheme which resulted in fraudulently induced outbound payments.

The Company immediately launched an investigation, led by outside counsel, to determine the full extent of the fraud scheme and related potential exposure.

The investigation is ongoing.

The Company initiated contact with its banks and law enforcement authorities in an effort to, among other things, recover the transferred funds.

To date, the Company has not found any evidence of additional fraudulent activity and believes it was an isolated and contained event.

This incident did not result in any unauthorized access to the Company's information systems or any confidential customer information or other data that the Company maintains.

The Company recognized a $ 3,500,000 pre-tax charge for the quarter ended June 30, 2024.

This charge was recorded on the Administrative Expenses line on the Condensed Consolidated Statements of Income for the three and six months periods ended June 30, 2024.

This charge was not allocated to any of the Company's three reportable segments.

While the investigation is ongoing, the Company expects to record a charge in a similar amount in the third quarter of 2024 as a result of this event.

While this matter will result in some additional near-term expenses, the Company does not expect this incident to otherwise have a material impact on its business, financial position, results of operations and cash flow.

RECENT ACCOUNTING PRONOUNCEMENTS

34 unchanged sentences

During 2023, many countries took steps to incorporate Pillar Two into their domestic laws.

Although the OECD’s model provides a framework for applying the minimum tax, countries may enact Pillar Two rules that vary slightly from the model, can adopt a different timeline, and may

adjust local tax incentives in response to Pillar Two.

Although the OECD’s model provides a framework for applying the minimum tax, countries may enact Pillar Two rules that vary slightly from the model, can adopt a different timeline, and may adjust local tax incentives in response to Pillar Two.

While it is uncertain whether the U.S.

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-Q

Item 1. Financial Statements