What changed in this filing

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Item 1. Business

2022-03-04 compared with 2021-03-05 · 97 added, 66 removed, 247 unchanged (40% of the section changed)

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Our product and technology offerings include:

• easy-to-use, voice-enabled, automatically-programmed universal remote controls with two-way radio frequency ("RF") as well as infrared ("IR") remote controls, that are sold primarily to video service providers (cable, satellite, Internet Protocol television ("IPTV") and Over the Top ("OTT") services), original equipment manufacturers ("OEMs"), retailers, and private label customers;

• easy-to-use, voice-enabled, automatically-programmed universal remote controls with two-way radio frequency ("RF") as well as infrared ("IR") remote controls, sold primarily to video service providers (cable, satellite, Internet Protocol television ("IPTV") and Over the Top ("OTT") services), original equipment manufacturers ("OEMs"), retailers, and private label customers;

• integrated circuits ("ICs"), on which our software and universal device control database is embedded, sold primarily to OEMs, video service providers, and private label customers;

• software, firmware and technology solutions that can enable devices such as TVs, set-top boxes, audio systems, smart speakers, game controllers and other consumer electronic and smart home devices to wirelessly connect and interact with home networks and interactive services to control and deliver home entertainment, smart home services and device or system information;

• software, firmware and technology solutions that can enable devices such as TVs, set-top boxes, audio systems, smart speakers, game consoles and other consumer electronic and smart home devices to wirelessly connect and interact with home networks and interactive services to control and deliver home entertainment, smart home services and device or system information;

• cloud-services that support our embedded software and hardware solutions (directly or indirectly) enabling real-time device identification and system control with billions of transactions per year in device and data management;

• intellectual property that we license primarily to OEMs, software development companies, private label customers, and video service providers;

• intellectual property that we license primarily to OEMs and video service providers;

• proprietary and standards-based RF sensors designed for residential security, safety and home automation applications;

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• AV accessories sold, directly and indirectly, to consumers including universal remote controls, television wall mounts and stands and digital television antennas.

Our channel strategy is to partner with customers who are leaders in their respective industries:

in consumer electronics, we count Samsung Electronics, Sony Group Corporation and LG Electronics as long-term accounts that represent a significant share of their industry;

in video services, Comcast Corporation, Liberty Global and Vodafone Group rank amongst the largest video service providers in their respective markets;

in climate control, Daikin Industries Ltd., is the market share leader in the global HVAC industry;

and in security, safety and home automation, Vivint Smart Home and Hunter Douglas are channel leaders in their respective connected home markets.

Distribution methods for our control solutions vary depending on the sales channel.

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We also distribute home security sensors and connected thermostats to pro-security installers and hospitality system integrators in the United States and Europe through a network of national and regional distributors and dealers.

Additionally, we sell our wireless control devices and AV accessories under the One For All® and private label brand names to retailers through our international subsidiaries and direct to retailers in key markets, such as in the United States, United Kingdom, Germany, France, Spain, and Italy.

Kingdom, Germany, France, Spain, and Italy.

We utilize third-party distributors for the retail channel in countries where we do not have subsidiaries.

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The two-way connection allows device control code data and configuration settings to be sent to the remote control from the device and greatly simplifies the universal control set-up process and can enable other time-saving features.

QuickSet utilizes data transmitted over HDMI or Internet Protocol ("IP") networks to automatically detect various attributes of the connected device and downloads the appropriate control codes and functions into the remote control without the need for the user to enter any additional information.

QuickSet utilizes data transmitted over HDMI or Internet Protocol ("IP") networks to automatically detect various attributes of the connected device and download the appropriate control codes and functions into the remote control without the need for the user to enter any additional information.

With QuickSet, consumers switch easily between activities and reliably view their chosen content source with a single touch.

A QuickSet user experience can be delivered via a tactile remote, touchscreen interface, on-screen graphical user interface or voice-enabled system.

Licensees of QuickSet include service providers such as Comcast, Charter Communications, AT&T and Dish Network Corporation;

smart TV manufacturers such as Sony Corporation, LG and Samsung;

and leading game console manufacturers such as Microsoft Corporation on its Xbox One game system and Sony PlayStation on its PlayStation 5 remote control.

Licensees of QuickSet include service providers such as Comcast Corporation, Charter Communications, AT&T Inc.

and DISH Network Corporation;

smart TV manufacturers such as Sony Group Corporation, LG Electronics and Samsung Electronics Co.;

and leading game console manufacturer Sony on its PlayStation 5 remote control.

QuickSet Cloud is an end-to-end platform for discovery, control, and interaction with devices including rules and automation framework for a truly connected home experience.

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Our technology pipeline has expanded to include an artificial intelligence platform, nevo.ai, that enables a digital assistant for the connected home with a natural language interface to allow interaction with devices within the home using QuickSet's underlying capabilities.

For example, our newest product platform, Nevo Butler, offers a turnkey smart home hub with nevo.ai and QuickSet pre-integrated.

For example, our product platform, Nevo Butler, offers a turnkey smart home hub with nevo.ai and QuickSet pre-integrated.

Nevo Butler delivers a managed hardware with security built-in capable of supporting other digital assistants.

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Features are further expandable through enterprise integration with an ecosystem of third-party partner services.

In 2018, we won a Technical & Engineering Emmy® Award from The National Academy of Television Arts & Sciences for our work relating to voice navigation technologies for discovering and interacting with TV content.

We were selected for our excellence in engineering and creativity that has materially affected the television viewing experience.

To date, we have shipped over 100 million voice-enabled RF remote controls in the home entertainment channel since our first deployment in 2015.

For the years ended December 31, 2020, 2019 and 2018, our sales to Comcast accounted for 20.1%, 15.9% and 17.6% of our net sales, respectively.

For the years ended December 31, 2021, 2020 and 2019, our sales to Comcast Corporation accounted for 16.3%, 20.1% and 15.9% of our net sales, respectively.

For the year ended December 31, 2021, our sales to Daikin Industries Ltd.

accounted for 11.8% of our net sales.

Markets and Competition

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This has resulted in a change in mix in our customer base, especially in the U.S., where our traditional customers in cable and satellite have been complimented with new customers in the digital media streaming domain.

For example, during the fourth quarter of 2020, we announced an MFi-certified, AppleTV remote control for the Multichannel Video Programming Distributor ("MVPD") market allowing subscribers access to subscription-based channels through an OTT streaming platform, such as AppleTV.

Today our portfolio includes universal control products compatible with Apple's TVOS and Google's AndroidTV platforms designed for the Multichannel Video Programming Distributor ("MVPD") market allowing subscribers access to subscription-based channels through hybrid and OTT streaming platforms.

Additionally, some of our current customers have successfully introduced media streaming services and expanded their footprint to new end-users.

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Our principal competitors in the home entertainment market are Remote Solutions, Omni Remotes, SMK, Ohsung, Tech4Home and Ruwido.

In the international retail and private label markets for wireless controls we compete primarily with the remote segment of Logitech and accessory trading and branding companies like Jasco and Hama, as well as various manufacturers of wireless controls in Asia.

In the international retail and private label markets for wireless controls we compete primarily with a variety of accessory trading and branding companies like Jasco and Hama, as well as various manufacturers of wireless controls in Asia.

Our primary competitors in the OEM market are the OEMs themselves and various wireless control manufacturers in Asia.

Leveraging our scale and expertise in low-power RF microcontrollers, we continue to pursue further penetration of the more traditional OEM consumer electronics markets as well as newer product categories in the smart home and IoT markets such as lighting, window coverings, and bathroom controllers.

Leveraging our scale and expertise in low-power RF microcontrollers, we continue to pursue further penetration of our traditional OEM consumer electronics markets as well as newer product categories in the smart home and IoT markets such as lighting, window coverings and bathroom controllers.

Customers in these markets integrate our connectivity and cloud-based solutions, services and technology into their products to enhance their consumer lifestyle ecosystems.

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In this market, we compete with offshore-based, original design and built-to-print hardware manufacturers, such as Leedarson.

In the connected smart home market, we compete with the OEMs themselves as well as wireless manufacturers in North America, such as Nortek, and other original design manufacturers in Asia.

In the HVAC controller and thermostat market, we compete with regional specialists and global companies such as Honeywell, Johnson Control, Emerson, Schneider Electric, as well as Far East based OEM manufacturers such as Computime.

In the connected smart home market, we compete with the OEMs themselves as well as wireless manufacturers in North America, such as Nortek Control, and other original design manufacturers in Asia.

In the HVAC controller and thermostat market, we compete with regional specialists and global companies such as Honeywell, Johnson Controls, Emerson, Schneider Electric, as well as Far East based OEM manufacturers such as Computime.

We compete in our markets on the basis of product quality, enhanced features, intellectual property, local design and development expertise, local development support and end-user support.

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• Guangzhou Universal Electronics Service Co., Ltd., established in the PRC;

• One For All Argentina S.R.L., established in Argentina;

• One For All France S.A.S., established in France;

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Ltd., established in the PRC.

(1) This subsidiary is in the liquidation process at December 31, 2021 and is expected to be fully dissolved on April 27, 2022.

During 2021, our engineering efforts focused on the following:

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• launching new embedded software solutions designed to simplify set-up and control features;

• modifying existing products and technologies to improve features and lower costs;

• modifying existing products and technologies to improve features, lower costs and to ensure minimal supply chain disruption;

• maintaining existing products and relocating certain manufacturing to lower cost jurisdictions;

• developing sustainable products that reduce energy use and eliminate waste;

• formulating measures to protect our proprietary technology and general know-how;

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During 2021, our advanced engineering efforts focused on further developing our existing products, services and technologies.

We released software updates to our embedded QuickSet application, and continued development initiatives around emerging RF technologies, such as Rf4CE, Bluetooth, Bluetooth Smart and WiFi.

We also introduced a new service platform (UEI Virtual Agent) for easier device onboarding, identification and troubleshooting across our portfolio of control products.

We released software updates to our embedded QuickSet application, and continued development initiatives around existing and emerging technologies, such as Rf4CE, Bluetooth, Bluetooth Smart WiFi and Matter, a unifying, IP-based connectivity protocol built on proven technologies designed to connect smart home devices reliably and securely across disparate IoT ecosystems.

We continue to enhance the capabilities of our service platform (UEI Virtual Agent) for easier device onboarding, identification and troubleshooting across our portfolio of control products.

In 2021, we introduced QuickSet Widget, a family of connectivity modules integrated with QuickSet Cloud device management services, including a remote management dashboard and a mobile software development kit making it easy for OEMs across all channels to upgrade their products to be connected, managed and secured.

Our personnel are involved with various industry organizations and bodies, which are in the process of setting standards for IR and RF communication and networking in the home.

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Our libraries are continuously updated with device control codes used in newly introduced AV and IoT devices.

These control codes are captured directly from original control devices or from the manufacturer's written specifications to ensure the accuracy and integrity of the library.

These control codes are captured directly from

original control devices or from the manufacturers' written specifications to ensure the accuracy and integrity of the library.

Our proprietary software and know-how permit us to offer a device control code database that is more robust and efficient than similarly priced products from our competitors.

This device knowledge graph is backed by our unique device fingerprinting technology which includes over 24.4 million unique device fingerprints across both AV and Smart Home devices.

Smart devices are becoming a more prevalent part of the home entertainment experience, and we offer several solutions to enable entertainment device control via a smart phone, tablet, smart TV or smart speaker or digital assistant.

In our smart device

control solutions, we offer the elements needed for device control ranging from IR and RF controller chips to device control libraries to graphical and voice user interfaces, as well as artificial intelligence systems that deliver context aware device interactions.

Smart devices are becoming a more prevalent part of the home entertainment experience, and we offer several solutions to enable entertainment device control via smart phones, tablets, smart TVs, smart speakers or digital assistants.

In our smart device control solutions, we offer the elements needed for device control ranging from IR and RF controller chips to IP-device control libraries to graphical and voice user interfaces, as well as artificial intelligence systems that deliver context aware device interactions.

We hold a number of patents in the United States and abroad related to our products and technology and have filed domestic and foreign applications for other patents that are pending.

At the end of 2020, we had nearly 600 issued and pending United States patents related to remote control, home security, safety and automation as well as hundreds of foreign counterpart patents and applications in various territories around the world.

At the end of 2021, we had more than 600 issued and pending United States patents related to remote control, home security, safety and automation as well as hundreds of foreign counterpart patents and applications in various territories around the world.

Our patents have remaining lives ranging from one to 18 years.

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Manufacturing and Supply

We currently own and operate vertically integrated manufacturing and assembly factories in the PRC, Mexico and Brazil, which allow us to produce in the regional markets and to scale our production to meet growing demand.

In 2018, we began conversion of our Mexico refurbishment plant into a full manufacturing and assembly factory.

This conversion was substantially completed by the third quarter of 2019.

We also use third-party manufacturing partners in the Far East, such as Vietnam.

We utilize our own manufacturing plants and third-party manufacturers and suppliers primarily to produce our control and sensor products.

In 2020, Qorvo International Pte Ltd.

provided 14.2% of our total inventory purchases.

In 2019 and 2018, no single supplier provided more than 10% of our total inventory purchases.

Even though we operate two factories in the PRC and manufacturing and assembly plants in Mexico and Brazil, we continue to evaluate additional contract manufacturers and sources of supply.

During 2020, we utilized multiple contract manufacturers and maintained duplicate tooling for certain of our products.

We currently operate vertically integrated manufacturing and assembly factories in the PRC, Mexico and Brazil, which allow us to produce in the regional markets and to scale our production to meet growing demand.

We also use selected third-party manufacturers and suppliers in Asia.

Our long-term factory planning strategy is to de-risk our reliance on a PRC-based supply chain by (1) reducing our manufacturing concentration in the PRC, (2) pursuing the lowest cost jurisdictions for manufacturing to ensure market competitive products and (3) offering customers a flexible and globally diverse manufacturing footprint to ensure a reliable and cost-efficient supply chain.

To this effect, in 2022, we have leased factory space in Vietnam and expect to commence manufacturing operations in the third quarter of 2022.

Even though we operate three factories in the PRC, manufacturing and assembly plants in Mexico and Brazil, respectively, and plan to open a manufacturing facility in Vietnam in 2022, we continue to evaluate additional third-party manufacturers and sources of supply.

During 2021, we utilized multiple third-party manufacturers and maintained duplicate tooling for certain of our products.

Where possible we utilize standard parts and components, which are available from multiple sources.

We are a large consumer of integrated circuits, including low-power, RF chips and modules that are used throughout our product portfolios.

We continually seek additional sources to reduce our dependence on our integrated circuit suppliers.

To further manage our integrated system on a chip supplier dependence, we include microcontroller technology which incorporates non-volatile, reprogrammable flash memory in most of our products.

Flash memory-based microcontrollers have shorter lead times than microcontrollers using other memory technologies and may be reprogrammed.

This allows us flexibility to use a given component on many different products, has the added benefit of potentially reducing excess and obsolete inventory exposure and allows us to update our product functionality in the field.

This diversification lessens our dependence on any one supplier and allows us to negotiate more favorable terms.

Qorvo International Pte Ltd.

provided 11.8% and 14.2% of our total inventory purchases in 2021 and 2020, respectively.

In 2019, no single supplier provided more than 10% of our total inventory purchases.

Our manufacturing process consists of plastic injection, keypad molding, coating or painting, surface mounting of printed circuit boards, assembly, software installation, functional testing, and quality control.

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Testing and quality control are applied to components, parts, sub-assemblies, and systems obtained from third-party suppliers.

Our factories in the PRC are certified to the ISO 14001 International Standard for environmental management systems.

Our manufacturing

facilities in Mexico and in Yangzhou, PRC are also certified to the TL 9000 Standard, which is the telecom industry's unique extension to ISO 9001:2015.

Our manufacturing facilities are certified to the ISO 14001:2015 International Standard for environmental management systems.

In addition, our manufacturing facilities in Yangzhou, PRC have also achieved ISO 45001 International Standard for safety and health management systems, with one of the facilities successfully completing the Validated Audit Process with the Responsible Business Alliance ("RBA").

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and our teams continue to examine practices and processes throughout our facilities to identify opportunities for greater efficiency.

Each of our manufacturing facilities has standing policies and/or guidelines for the monitoring and management of energy consumption, and continually strives for reduction in electricity and water usage.

In addition to requiring observance to strict quality standards by our suppliers, we maintain and require our suppliers to adhere to a robust Global Supplier Code of Conduct, which is available on our website.

As part of the initial qualification and ongoing audit process, our dedicated Global Supplier Quality Management Team examines a supplier's social and environmental responsiveness in areas such as labor practice, occupational health and safety, and environmental protection.

Additionally, we are committed to a conflict-free mineral supply chain.

We continually seek additional sources to reduce our dependence on our integrated circuit suppliers.

To further manage our integrated system on a chip supplier dependence, we include microcontroller technology which incorporates non-volatile, reprogrammable flash memory in most of our products.

Flash memory-based microcontrollers have shorter lead times than microcontrollers using other memory technologies and may be reprogrammed, if necessary.

This allows us flexibility to use a given component on many different products, has the added benefit of potentially reducing excess and obsolete inventory

exposure and allows us to update our product functionality in the field.

This diversification lessens our dependence on any one supplier and allows us to negotiate more favorable terms.

We are also a large consumer of low-power, RF chips and modules that are used throughout our product portfolios, including many of our remotes, sensors and thermostats.

Each of our manufacturing facilities has standing policies and targets for the monitoring and management of waste generation and energy consumption, and continually strives for the reduction in electricity consumption, water usage and greenhouse gas emission.

In particular, in response to the greater focus on combating climate change, each manufacturing facility has set targets for the year-over-year reduction of greenhouse emission and actively monitored its greenhouse emission throughout the year.

We are an Affiliate Member of the RBA, the world's largest industry coalition dedicated to corporate social responsibility in global supply chains, and we are required to comply with RBA's rigorous Code of Conduct.

Through the RBA program, we will assess our supply chain from tier 1 through tier 3 suppliers and request Validated Assessment Program audits for any identified high-risk suppliers.

In addition to requiring observance to strict quality standards by our suppliers, we maintain and require our suppliers to adhere to a robust Global Supplier Code of Conduct and Fair Competition Policy ("Supplier Code of Conduct"), which is available on our website and is an essential part of our supply chain management.

As part of the initial qualification and ongoing audit process, our dedicated Global Supplier Quality Management Team examines a supplier's social and environmental responsiveness in areas such as labor and human rights practice, occupational health and safety, and environmental protection.

Further, our Supplier Code of Conduct sets forth our global expectations that we have in the areas of fair dealing, legal compliance, business integrity, labor practices, health and safety, and environmental management.

In particular, we require all within our supply chain to respect basic human rights and to not engage in any involuntary or forced labor and to fully comply with all laws and regulations pertaining to the appropriate and dignified treatment of all workers.

In addition, we adhere to, and require those within our supply chain to adhere to the RBA Code of Conduct, which among other things prohibits the use of forced labor in any manner.

To better enforce a zero-tolerance of forced labor, our employees, including but not limited to those within the Global Supplier Quality Management Team, have been trained to identify signs of forced labor and other unlawful labor practices and we continue to evaluate our global ESG compliance policies and procedures to ensure we have a global program that follows best-practices and adheres to changes in laws and regulations.

Government Regulation and Environmental Matters

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Our European subsidiaries are WEEE compliant.

Similar legislation has been or may be enacted in other jurisdictions, including in the United States, Canada, Mexico, Brazil, the PRC, India and Japan.

We believe that we have materially complied with all currently existing international and domestic federal, state and local statutes and regulations regarding environmental standards and occupational safety and health matters to which we are subject.

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However, future events, such as changes in existing laws and regulations or enforcement policies, may give rise to additional compliance costs that may have a material adverse effect upon our capital expenditures, earnings or financial condition.

Our operations, supply chain and our products are expected to become increasingly subject to federal, state, local and foreign laws, regulations and international treaties relating to climate change, such as climate disclosure, carbon pricing or product energy efficiency requirements.

We strive to continually improve the energy and carbon efficiency of our operations, supply

chain and product portfolio and deliver more cost-effective and lower carbon technology solutions to our customers.

We believe that technology will be fundamental to finding solutions to achieve compliance with and manage those requirements, and we are collaborating with our customers to find and promote ways that our technology can be used to address climate change and to facilitate compliance with related laws, regulations and treaties.

We are committed to reducing and eliminating substances of concern from our products and manufacturing process.

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In other regions, we also need to comply with our customers' specific requirements relating to the non-use of certain hazardous substances in the products, which are typically equally or more stringent than the RoHS directive.

We have a dedicated "Green Team" based in the PRC and in-house testing capability to ensure product compliance.

We have a dedicated "Green Team," based in the PRC and comprised of engineers, scientists and environmental regulation experts, that analyze our products, processes, and raw materials to ensure that we comply with environmental and government regulations worldwide.

Additionally, we have in-house testing capability to ensure product compliance.

In 2020, the Chinese government published four National Standards with the aim of reducing emission of certain volatile organic compounds ("VOC") in adhesives, coatings, ink and cleaning agents.

Our Green Team has been working proactively for the identification and reduction of such VOCs within our supply chain.

We place great importance in strict compliance of local health and safety laws and regulations.

At our manufacturing facilities, we are also committed to protecting our workers from exposure to hazardous substances under an established health and safety management system;

for example, we strive to have our facilities be free of lead and the substances banned by RoHS.

We also place great importance in strict compliance of local health and safety laws and regulations.

We strive to extend the useful life of our products and reduce our products' impact on the environment.

for example, we strive to have our facilities be free of lead and the substances banned by RoHS, and we are increasing our use of water-based paint at our facilities.

We strive to extend the useful life of our products and reduce our products' impact on the environment, and we have invested significant R&D in improving the energy efficiency of our battery-operated products.

For example, we deploy a low energy IR-engine in some of our products which can extend battery life regardless of the protocols utilized by the product.

In 2021, we started shipping an Android TV remote product with a USB-C rechargeable battery to reduce battery consumption throughout the life of the product.

We recently introduced our latest control platform and related technologies that address the growing demand for sustainable products that reduce energy use and eliminate waste.

With this platform, we partnered with technology leaders and invested in bringing ultra-low power connectivity chips with built-in energy harvesting and photovoltaic cells to the market.

These chips offer more computing power, while consuming up to 80% less battery power, enabling up to ten times longer battery life.

We also offer a robust product refurbishment program to our customers where we reclaim, refurbish and recycle pre-owned remote controls.

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Some of our manufacturing facilities are switching to the use of recycled solder.

We are also looking for ways to reduce the use of single-use plastics in our products and packaging.

To further reduce collateral waste, we have introduced an initiative to reduce and/or remove single use plastics ("SUP") from our supply chain and manufacturing process for certain customer programs.

Human Capital

At December 31, 2021, we employed 3,945 members of staff across our worldwide facilities.

Of this staff, 2,362 members are associated with our manufacturing and supply chain organizations in the PRC, Mexico and Brazil.

In the PRC we are working with external agencies to recruit staff to support our production activities where 3,866 staff members are contracted through agency agreements.

Beyond the manufacturing and supply chain organizations, 1,064 members of staff work in engineering and R&D, 109 work in sales and marketing, 33 work in consumer service and support and 271 work in executive and administrative functions.

Of this staff, 2,850 are associated with our manufacturing and supply chain organizations in the PRC, Mexico and Brazil.

Beyond the manufacturing and supply chain organizations, 675 of staff work in engineering and R&D, 109 work in sales and marketing, 31 work in consumer service and support and 280 work in executive and administrative functions.

Additionally, in the PRC, as is standard practice, we work with third-party agencies who have recruited and provided us with 3,135 workers to support our production activities.

As with all others within our supply chain, these third-party agencies are required to adhere to our Supplier Code of Conduct, which among other things, prohibits the use of forced labor and sets forth requirements on fair dealing, legal compliance, business integrity, labor practices, health and safety, and environmental management.

We provide and maintain a work environment that is designed to attract, develop and retain top talent through offering our employees an engaging work experience that contributes to their career development.

We recognize that our success is based on the collective talents and dedication of those we employ.

Talent management is critical to our ability to execute our long-term growth strategy, and we utilize both internal human resource personnel and external recruiting firms to identify and attract talent.

Through our history of technological innovation, we appreciate the importance of retention, growth and development of our employees.

We regularly collect feedback from employees to better understand and improve their experiences and identify opportunities to continually strengthen our culture.

Due to the nature of our activities, we tend to heavily invest in engineering capital, employing highly skilled and specialized engineers and technicians in the areas of electronics, RF design, software, cloud, mechanical, industrial design, manufacturing and quality disciplines.

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Next to these specialized centers of excellence, we employ engineering, sales and marketing and support staff in many of our regional offices in the United States, The Netherlands, Hong Kong, Brazil, India, Japan, Korea and Mexico.

We continue to be committed to an inclusive culture that values equality, opportunity and respect.

We have an active policy and Code of Conduct covering diversity, inclusion, anti-discrimination and corporate social responsibility across all our facilities, and we encourage our suppliers to do the same.

During the COVID-19 pandemic, we established a proactive steering committee to monitor, support and ensure the safety and health of all of our staff around the globe.

We are committed to an inclusive culture that values equality, opportunity and respect.

We have an active Code of Conduct and Supplier Code of Conduct that our employees and supply chain members, respectively, must adhere to, both of which cover diversity, inclusion, anti-discrimination and corporate social responsibility.

The respect for human rights is a core tenet both within our organization and when working with our supply chain members, and our employees are encouraged to notify the Company if they notice or suspect any violation of our employee Code of Conduct, Supplier Code of Conduct or of law.

We have a confidential ethics hotline to enable our employees to report any suspected violations of applicable laws or policies.

In locations where we use third-party employment or labor agencies to source some members of our workforce, we have increased our audit and review efforts of such agencies to ensure that their practices are in line with our policies and priorities and they operate in compliance with our Supplier Code of Conduct and the RBA Code of Conduct.

Throughout the COVID-19 pandemic, our top priority has been the health, safety, and well-being of our employees and their families, including those workers provided to us by third-party labor agencies.

Our cross-functional COVID-19 steering committee meets regularly to review the latest data from business and site leaders, identify and address emerging risks, and formulate our response to actions taken by governments and public policy organizations.

We have put in place policies and protocols based on guidance from public health leaders and regularly review and update them to reflect the best, most current information available.

Labor unions represent approximately 43.9% of our 3,945 employees at December 31, 2021.

Some unionized workers, employed in Monterrey, Mexico, are represented under contract with the Sindicato Industrial de Trabajadores de Nuevo León adherido a la Federación Nacional de Sindicatos Independientes.

Other unionized workers, employed in Manaus, Brazil, are represented under contract with the Sindicato dos Trabalhadores nas Industrias Metalugicas, Mecanicas e de Materiais Eletricos de Manaus.

Some of these unionized workers are employed in Monterrey, Mexico, and are represented under contract with the Sindicato Industrial de Trabajadores de Nuevo León adherido a la Federación Nacional de Sindicatos Independientes.

Unionized workers, employed in Manaus, Brazil, are represented under contract with the Sindicato dos Trabalhadores nas Industrias Metalugicas, Mecanicas e de Materiais Eletricos de Manaus.

Our business units are subject to various laws and regulations relating to their relationships with their employees.

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We expect this pattern to be repeated during 2022.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA — Notes to Consolidated Financial Statements — Note 21" for further details regarding our quarterly results.

Information About Our Executive Officers

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Koopmans 46 Senior Vice President, Global Sales

Miketo 64 Senior Vice President, Operations

Miketo 65 Senior Vice President, Operations (to retire on June 30, 2022)

Arling is our Chairman and Chief Executive Officer.

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He originally joined us in 2008 holding various positions, ultimately advancing to Senior Vice President of Operations by 2013.

He has announced his intention to retire on June 30, 2022.

Before rejoining us in 2019, he was President/COO at Cast Nylons, a privately held manufacturer and distributor of cast nylon stock shapes and custom cast parts.

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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.

What changed 10-K

Item 1. Business