31 unchanged sentences
We continue to consider additional opportunities to make foreign investments and construct new foreign facilities.
−Removed: For the quarter ended March 29, 2021, we generated approximately 53% of our net sales from non-U.S.
+Added: For the quarter ended June 28, 2021, we generated approximately 56% of our net sales from non-U.S.
operations, and a significant portion of our manufacturing material was provided by international suppliers during this period.
59 unchanged sentences
Any increase in labor costs due to minimum wage laws or customer requirements about scheduling and overtime that we are unable to recover in our pricing to our customers could materially adversely affect our business, financial condition, and results of operations.
−Removed: In addition, the high turnover rate and our difficulty in recruiting and retaining qualified employees and the other labor trends we are noting in China could result in a potential for defects in our products, production disruptions or delays, or the inability to ramp production to meet increased customer orders, resulting in order cancellation or imposition of customer penalties if we are unable to deliver products in a timely manner.
+Added: In addition, the high turnover rate and our difficulty in recruiting and retaining qualified employees could result in a potential for defects in our products, production disruptions or delays, or the inability to ramp production to meet increased customer orders, resulting in order cancellation or imposition of customer penalties if we are unable to deliver products in a timely manner.
To respond to competitive pressures and customer requirements, we may further expand internationally in lower-cost locations.
68 unchanged sentences
If our goodwill or other intangible assets become impaired in the future, we would be required to record a non-cash charge to earnings, which may be material and would also reduce our stockholders’ equity.
−Removed: As of March 29, 2021, our consolidated condensed balance sheet included $907.7 million of goodwill and definite-lived intangible assets.
+Added: As of June 28, 2021, our consolidated condensed balance sheet included $897.3 million of goodwill and definite-lived intangible assets.
We periodically evaluate whether events and circumstances have occurred, such that the potential for reduced expectations for future cash flows coupled with further decline in the market price of our stock and market capitalization may indicate that the remaining balance of goodwill and definite-lived intangible assets may not be recoverable.
15 unchanged sentences
In addition, our future quarterly operating results may fluctuate and may not meet the expectations of securities analysts or investors.
−Removed: We participate in the competitive, cyclical automotive industry, which is subject to strict quality control standards.
−Removed: Failure to meet quality standards may adversely affect our business, financial condition and results of operations.
−Removed: A significant portion of our sales are to customers within the automotive industry.
+Added: We participate in competitive industries, including the automotive industry, which requires strict quality control standards.
+Added: Failure to meet these standards may adversely affect our business, financial condition and results of operations.
+Added: Our customer base demands the highest customer service, on time delivery and quality standards in a competitive market.
+Added: Failure to meet these ever increasing standards may result in a loss of market share for our products and services to our competitors, which may result in a decline in our overall revenue.
+Added: In addition, a significant portion of our sales are to customers within the automotive industry.
The automotive industry has historically experienced multi-year cycles of growth and decline.
If sales of automobiles should decline or go into a cyclical down turn, our sales could decline and this could have a materially adverse impact on our business, financial condition and result of operations.
−Removed: In addition, for safety reasons, automotive customers have strict quality standards that generally exceed the quality requirements of other customers.
+Added: For safety reasons, automotive customers have strict quality standards that generally exceed the quality requirements of other customers.
If such products do not meet these quality standards, our business, financial condition, and results of operations may be materially adversely affected.
3 unchanged sentences
The prominence of EMS companies as our customers could reduce our gross margins, potential sales, and customers.
−Removed: Sales to EMS companies represented approximately 35% of our net sales for both the quarters ended March 29, 2021 and March 30, 2020.
+Added: Sales to EMS companies represented approximately 36% and 38% of our net sales for the quarters ended June 28, 2021 and June 29, 2020, respectively.
Sales to EMS providers include sales directed by OEMs as well as orders placed with us at the EMS providers’ discretion.
6 unchanged sentences
A small number of customers are responsible for a significant portion of our sales.
−Removed: Our five largest OEM customers collectively accounted for approximately 32% and 28% of our net sales for the quarters ended March 29, 2021 and March 30, 2020, respectively.
+Added: Our five largest OEM customers collectively accounted for approximately 29% and 27% of our net sales for the quarters ended June 28, 2021 and June 29, 2020, respectively.
Furthermore, our business has benefited from OEMs deciding to outsource their PCB manufacturing and backplane assembly needs to us, and our future revenue growth partially depends on new outsourcing opportunities from OEMs.
15 unchanged sentences
The contracts between our direct customers and the government end user are subject to political and budgetary constraints and processes, changes in short-range and long-range strategic plans, the timing of contract awards, the congressional budget authorization and appropriation processes, the government’s ability to terminate contracts for convenience or for default, as well as other risks, such as contractor suspension or debarment in the event of certain violations of legal and regulatory requirements.
−Removed: For the quarter ended March 29, 2021, aerospace and defense sales accounted for approximately 35% of our total net sales.
+Added: For the quarter ended June 28, 2021, aerospace and defense sales accounted for approximately 33% of our total net sales.
The substantial majority of aerospace and defense sales are related to both U.S.
5 unchanged sentences
and foreign governments and may be affected by federal budget sequestration measures.
−Removed: The domestic and international threat of terrorist activity, emerging nuclear states, and conventional military threats have led to an increase in demand for defense products and services and homeland security solutions in the recent past.
−Removed: Although a two-year budget agreement was approved by the U.S.
−Removed: government in 2019 that budget agreement included sustained spending on defense programs, the termination or failure to fund one or more significant contracts by the U.S.
+Added: The domestic and international threat of terrorist activity, emerging nuclear states, and conventional military threats have generally led to an increase in demand for defense products and services and homeland security solutions in the recent past.
+Added: The termination or failure to fund one or more significant defense programs or contracts by the U.S.
government could have a material adverse effect on our business, financial condition, and results of operations.
9 unchanged sentences
Additionally, our OEM customers often direct a significant portion of their purchases through a relatively limited number of EMS companies.
−Removed: Sales to EMS companies represented approximately 35% of our net sales for both the quarters ended March 29, 2021 and March 30, 2020.
+Added: Sales to EMS companies represented approximately 36% and 38% of our net sales for the quarters ended June 28, 2021 and June 29, 2020, respectively.
Our contractual relationship is often with the EMS companies, who are obligated to pay us for our products.
37 unchanged sentences
If we need new technologies and equipment or if we are not able to design new products acceptable to customers to remain competitive, the development, acquisition, and implementation of those designs, technologies and equipment may require us to make significant capital investments.
−Removed: Products we manufacture may contain design or manufacturing defects, which could result in reduced demand for our services and liability claims against us.
+Added: Products we manufacture may contain design or manufacturing defects, which could result in reduced revenue from the sale of our products or services and may result in liability claims against us.
We manufacture products to our customers’ specifications, which are highly complex and may contain design or manufacturing errors or failures, despite our quality control and quality assurance efforts.
Defects in the products we manufacture, whether caused by a design, manufacturing, or materials failure or error, may result in delayed shipments, customer dissatisfaction, a reduction or cancellation of purchase orders, or liability claims against us.
−Removed: If these defects occur either in large quantities or too frequently, our business reputation may be impaired.
+Added: If these defects occur either in large quantities or too frequently, our business reputation may be impaired, and our customers may decrease the orders for products or services that they purchase from us, thereby decreasing our overall revenue.
Since our products are used in products that are integral to our customers’ businesses, errors, defects, or other performance problems could result in financial or other damages to our customers beyond the cost of the PCB, for which we may be liable.
1 unchanged sentence
In addition, we manufacture products for a range of automotive customers.
−Removed: If any of our products are or are alleged to be defective, we may be required to participate in a recall of such products.
−Removed: As suppliers become more integral to
−Removed: the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contributions when faced with product liability claims or recalls.
+Added: If any of our products
+Added: are or are alleged to be defective, we may be required to participate in a recall of such products.
+Added: As suppliers become more integral to the vehicle design process and assume more of the vehicle assembly functions, vehicle manufacturers are increasingly looking to their suppliers for contributions when faced with product liability claims or recalls.
In addition, vehicle manufacturers, which have traditionally borne the costs associated with warranty programs offered on their vehicles, are increasingly requiring suppliers to guarantee or warrant their products and may seek to hold us responsible for some or all of the costs related to the repair and replacement of parts supplied by us to the vehicle manufacturer .
30 unchanged sentences
China has put in place a comprehensive system of intellectual property laws;
−Removed: however, incidents of infringement are common, and enforcement of rights can, in practice, be difficult.
+Added: incidents of infringement are common, and enforcement of rights can, in practice, be difficult.
If we are unable to manage our intellectual property rights, our business and operating results may be seriously harmed .
−Removed: Damage to our manufacturing facilities due to fire, natural disaster, or other events could materially adversely affect our business, financial condition, and results of operation s .
+Added: Damage to our manufacturing facilities due to fire, natural disaster, or other events could materially adversely affect our business, financial condition, and results of operations.
The destruction or closure of any of our facilities for a significant period of time as a result of fire, explosion, blizzard, act of war or terrorism, flood, tornado, earthquake, lightning, other natural disasters, required maintenance, or other events could harm us financially, increasing our costs of doing business and limiting our ability to deliver our manufacturing services on a timely basis.
30 unchanged sentences
Although the indenture governing the Senior Notes due 2029 and the credit agreements governing the Term Loan Facility, the U.S.
−Removed: Asia ABL will contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of qualifications and exceptions, and the additional indebtedness incurred in compliance with these restrictions could be substantial.
+Added: ABL and the Asia ABL will contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of qualifications and exceptions, and the additional indebtedness incurred in compliance with these restrictions could be substantial.
These restrictions also will not prevent us from incurring obligations that do not constitute indebtedness .
30 unchanged sentences
We cannot be certain that we will be able to maintain our security clearance.
−Removed: If for some reason our security clearance is invalidated or terminated, we may not be able to continue to perform on classified contracts and would not be able to enter into new classified contracts, which could materially adversely affect our business, financial condition, and results of operations.
+Added: If for some reason our security clearance is invalidated or
+Added: terminated, we may not be able to continue to perform on classified contracts and would not be able to enter into new classified contracts, which could materially adversely affect our business, financial condition, and results of operations .
Our operations in China and Hong Kong subject us to risks and uncertainties relating to the laws and regulations of China and Hong Kong.
10 unchanged sentences
We are subject to risks for the use of certain metals from “conflict minerals” originating in the Democratic Republic of the Congo.
−Removed: During the third quarter of 2012, the SEC adopted rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).
+Added: In 2012, the SEC adopted rules implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).
These rules impose diligence and disclosure requirements regarding the use of “conflict minerals” mined from the Democratic Republic of Congo and neighboring countries.
−Removed: While these new rules continue to be the subject of ongoing litigation and, as a result, uncertainty, we submitted a conflict minerals report on Form SD with the SEC for the past seven years, most recently on May 29, 2020.
+Added: While these new rules continue to be the subject of ongoing litigation and, as a result, uncertainty, we submitted a conflict minerals report on Form SD with the SEC for the past eight years, most recently on May 21, 2021.
Compliance with these rules results in additional costs and expenses, including costs and expenses incurred for due diligence to determine and verify the sources of any conflict minerals used in our products, in addition to the costs and expenses of remediation and other changes to products, processes, or sources of supply as a consequence of such verification efforts.
15 unchanged sentences
Environmental laws have generally become more stringent and we expect this trend to continue over time, especially in developing countries, imposing greater compliance costs and increasing risks and penalties associated with violation.
−Removed: We operate in
−Removed: environmentally sensitive locations, and we are subject to potentially conflicting and changing regulatory agendas of political, business, and environmental groups.
+Added: We operate in environmentally sensitive locations, and we are subject to potentially conflicting and changing regulatory agendas of political, business, and environmental groups.
Changes or restrictions on discharge limits, emissions levels, material storage, handling, or disposal might require a high level of unplanned capital investment or relocation to another global location where prohibitive regulations do not exist.
7 unchanged sentences
We are also subject to an increasing variety of environmental laws and regulations in China, which impose limitations on the discharge of pollutants into the air and water and establish standards for the treatment, storage, and disposal of solid and hazardous wastes for us and our vendors that assist us in managing the waste generated by our manufacturing processes.
−Removed: The manufacturing of our products generates gaseous chemical wastes, liquid wastes, waste water, and other industrial wastes from various stages of the manufacturing process.
+Added: The manufacturing of our products generates gaseous chemical wastes, liquid wastes, wastewater, and other industrial wastes from various stages of the manufacturing process.
Production sites, waste collectors, and vendors in China are subject to increasing regulation and periodic monitoring by the relevant environmental protection authorities.
22 unchanged sentences
Department of Commerce.
−Removed: We must comply with all applicable economic sanctions laws and regulations of the United States and other countries.
+Added: We must comply with all applicable economic sanctions laws and regulations of the United
+Added: States and other countries.
Imposition of economic sanction laws and regulations on a company or country could impact our revenue levels.
−Removed: Violations of these laws or regulations could result in significant additional sanctions including criminal or civil fines or
−Removed: penalties, more onerous compliance requirements, more extensive debarments from export privileges, or loss of authorizations needed to conduct aspects of our international business .
+Added: Violations of these laws or regulations could result in significant additional sanctions including criminal or civil fines or penalties, more onerous compliance requirements, more extensive debarments from export privileges, or loss of authorizations needed to conduct aspects of our international business .
In certain countries, we may engage third-party agents or intermediaries, such as customs agents, to act on our behalf, and if these third-party agents or intermediaries violate applicable laws, their actions may result in criminal or civil fines or penalties or other sanctions being assessed against us.
29 unchanged sentences
If we or our vendors are unable to prevent such outages and breaches, our operations could be disrupted.
−Removed: If unauthorized parties gain access to our information systems or such information is used in an unauthorized manner, misdirected, altered, lost, or stolen during transmission, any theft or misuse of such information could result in, among other things, unfavorable publicity, governmental inquiry and oversight, difficulty in marketing our services, allegations by our customers that we have not performed our contractual obligations, loss of customers, litigation by affected parties, and possible financial obligations for
−Removed: damages related to the theft or misuse of such information, any of which could have a material adverse effect on our business, financial condition, and results of operation s.
+Added: If unauthorized parties gain access to our information systems or such information is used in an unauthorized manner, misdirected, altered, lost, or stolen during transmission, any theft or misuse of such information could result in, among other things, unfavorable publicity, governmental inquiry and oversight, difficulty in marketing our services, allegations by our customers that we
+Added: have not performed our contractual obligations, loss of customers, litigation by affected parties, and possible financial obligations for damages related to the theft or misuse of such information, any of which could have a material adverse effect on our business, financial condition, and results of operation s.
Issues arising during the upgrade of our enterprise resource planning system could affect our operating results and ability to manage our business effectively.
25 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.