What changed in this filing

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Item 1. Financial Statements

2023-08-08 compared with 2023-05-09 · 181 added, 65 removed, 413 unchanged (37% of the section changed)

3 unchanged sentences

(In thousands)

April 1, 2023 December 31, 2022

July 1, 2023 December 31, 2022

Current assets:

24 unchanged sentences

(In thousands)

April 1, 2023 December 31, 2022

July 1, 2023 December 31, 2022

Liabilities and equity (Unaudited)

28 unchanged sentences

Fiscal quarter ended

April 1, 2023 April 2, 2022

July 1, 2023 July 2, 2022

Net revenues $ 90,802 $ 88,618

19 unchanged sentences

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Operations

(Unaudited - In thousands, except per share amounts)

Six fiscal months ended

July 1, 2023 July 2, 2022

Net revenues $ 179,666 $ 176,283

Costs of products sold 103,755 103,699

Gross profit 75,911 72,584

Selling, general, and administrative expenses 53,914 52,553

Restructuring costs 278 1,165

Operating income 21,719 18,866

Other income (expense):

Interest expense ( 2,076 ) ( 757 )

Other 1,294 3,783

Other income (expense) ( 782 ) 3,026

Income before taxes 20,937 21,892

Income tax expense 5,604 4,328

Net earnings 15,333 17,564

net earnings attributable to noncontrolling interests 133 453

Net earnings attributable to VPG stockholders $ 15,200 $ 17,111

Basic earnings per share attributable to VPG stockholders $ 1.12 $ 1.25

Diluted earnings per share attributable to VPG stockholders $ 1.11 $ 1.25

Weighted average shares outstanding - basic 13,593 13,643

Weighted average shares outstanding - diluted 13,661 13,684

See accompanying notes.

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Comprehensive Income (Loss)

1 unchanged sentence

Fiscal quarter ended

April 1, 2023 April 2, 2022

July 1, 2023 July 2, 2022

Net earnings $ 8,351 $ 10,880

2 unchanged sentences

Pension and other postretirement actuarial items ( 1 ) 81

Other comprehensive loss ( 1,681 ) ( 7,862 )

Comprehensive income 6,670 3,018

comprehensive income attributable to noncontrolling interests 115 125

Comprehensive income attributable to VPG stockholders $ 6,555 $ 2,893

See accompanying notes.

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Comprehensive Income (Loss)

(Unaudited - In thousands)

Six fiscal months ended

July 1, 2023 July 2, 2022

Net earnings $ 15,333 $ 17,564

Other comprehensive income (loss):

Foreign currency translation adjustment ( 178 ) ( 9,735 )

Pension and other postretirement actuarial items, net of tax 2 162

Other comprehensive loss ( 176 ) ( 9,573 )

Comprehensive income 15,157 7,991

5 unchanged sentences

(Unaudited - In thousands)

Three fiscal months ended

April 1, 2023 April 2, 2022

Six fiscal months ended

July 1, 2023 July 2, 2022

Operating activities

16 unchanged sentences

Accrued pension and other postretirement costs, net ( 606 ) ( 342 )

Net cash provided by (used in) operating activities 8,443 ( 273 )

Net cash provided by operating activities 18,212 8,756

Investing activities

3 unchanged sentences

Financing activities

Purchase of treasury stock ( 420 ) —

Distributions to noncontrolling interests ( 46 ) ( 284 )

12 unchanged sentences

Fiscal quarter ended

April 1, 2023

Stock Class B

7 unchanged sentences

Interests Total

Balance at December 31, 2022 $ 1,325 $ 103 $ ( 11,504 ) $ 201,164 $ 156,359 $ ( 40,900 ) $ 306,547 $ ( 25 ) $ 306,522

Balance at April 1, 2023 $ 1,328 $ 103 $ ( 11,504 ) $ 201,065 $ 163,323 $ ( 39,395 ) $ 314,920 $ ( 27 ) $ 314,893

Net earnings — — — — 8,236 — 8,236 115 8,351

4 unchanged sentences

2 — — ( 2 ) — — — — —

Purchase of treasury stock.

( 12,312 shares)

— — ( 420 ) — — — ( 420 ) — ( 420 )

Distributions to noncontrolling interests — — — — — — — ( 26 ) ( 26 )

Balance at April 1, 2023 $ 1,328 $ 103 $ ( 11,504 ) $ 201,065 $ 163,323 $ ( 39,395 ) $ 314,920 $ ( 27 ) $ 314,893

Balance at July 1, 2023 $ 1,330 $ 103 $ ( 11,924 ) $ 201,611 $ 171,559 $ ( 41,076 ) $ 321,603 $ 62 $ 321,665

Fiscal quarter ended

April 2, 2022

Stock Class B

7 unchanged sentences

Interests Total

Balance at December 31, 2021 $ 1,322 $ 103 $ ( 8,765 ) $ 199,151 $ 120,296 $ ( 35,008 ) $ 277,099 $ ( 57 ) $ 277,042

Balance at April 2, 2022 $ 1,324 $ 103 $ ( 8,765 ) $ 199,223 $ 126,652 $ ( 36,719 ) $ 281,818 $ 25 $ 281,843

— — — — 10,755 — 10,755 125 10,880

5 unchanged sentences

Distribution to noncontrolling interests — — — — — — — ( 38 ) ( 38 )

Balance at April 2, 2022 $ 1,324 $ 103 $ ( 8,765 ) $ 199,223 $ 126,652 $ ( 36,719 ) $ 281,818 $ 25 $ 281,843

Balance at July 2, 2022 $ 1,325 $ 103 $ ( 8,765 ) $ 199,749 $ 137,407 $ ( 44,581 ) $ 285,238 $ 112 $ 285,350

See accompanying notes.

VISHAY PRECISION GROUP, INC.

Consolidated Condensed Statements of Equity

(Unaudited - In thousands, except share amounts)

Six Fiscal Months Ended July 1, 2023

Stock Class B

Common Stock Treasury Stock Capital in

Par Value Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total VPG, Inc.

Stockholders'

Equity Noncontrolling

Interests Total

Balance at December 31, 2022 $ 1,325 $ 103 $ ( 11,504 ) $ 201,164 $ 156,359 $ ( 40,900 ) $ 306,547 $ ( 25 ) $ 306,522

Net earnings — — — — 15,200 — 15,200 133 15,333

Other comprehensive loss

— — — — — ( 176 ) ( 176 ) — ( 176 )

Share-based compensation expense

— — — 1,229 — — 1,229 — 1,229

Restricted stock issuances ( 47,189 shares)

5 — — ( 782 ) — — ( 777 ) — ( 777 )

Purchase of treasury stock ( 12,312 shares)

— — ( 420 ) — — — ( 420 ) — ( 420 )

Distributions to noncontrolling interests — — — — — — — ( 46 ) ( 46 )

Balance at July 1, 2023 $ 1,330 $ 103 $ ( 11,924 ) $ 201,611 $ 171,559 $ ( 41,076 ) $ 321,603 $ 62 $ 321,665

Six Fiscal Months Ended July 2, 2022

Stock Class B

Common Stock Treasury Stock Capital in

Par Value Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total VPG, Inc.

Stockholders'

Equity Noncontrolling

Interests Total

Balance at December 31, 2021 $ 1,322 $ 103 $ ( 8,765 ) $ 199,151 $ 120,296 $ ( 35,008 ) $ 277,099 $ ( 57 ) $ 277,042

— — — — 17,111 — 17,111 453 17,564

Other comprehensive loss — — — — — ( 9,573 ) ( 9,573 ) — ( 9,573 )

Share-based compensation expense

— — — 1,024 — — 1,024 — 1,024

Restricted stock issuances ( 28,368 shares)

3 — — ( 426 ) — — ( 423 ) — ( 423 )

Distribution to noncontrolling interests — — — — — — — ( 284 ) ( 284 )

Balance at July 2, 2022 $ 1,325 $ 103 $ ( 8,765 ) $ 199,749 $ 137,407 $ ( 44,581 ) $ 285,238 $ 112 $ 285,350

See accompanying notes.

Vishay Precision Group, Inc.

Notes to Unaudited Consolidated Condensed Financial Statements

8 unchanged sentences

These financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of December 31, 2022 and 2021 and for each of the three years in the period ended December 31, 2022, included in VPG’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March 1, 2023.

The results of operations for the fiscal quarter ended April 1, 2023 are not necessarily indicative of the results to be expected for the full year.

The results of operations for the fiscal quarter ended July 1, 2023 are not necessarily indicative of the results to be expected for the full year.

VPG reports interim financial information for 13-week periods beginning on a Sunday and ending on a Saturday, except for the first quarter, which always begins on January 1, and the fourth quarter, which always ends on December 31.

11 unchanged sentences

Fiscal quarter ended

April 1, 2023 Fiscal quarter ended

April 2, 2022

July 1, 2023 Fiscal quarter ended

Sensors Weighing Solutions Measurement Systems Total Sensors Weighing Solutions Measurement Systems Total

6 unchanged sentences

Total $ 36,266 $ 31,261 $ 23,275 $ 90,802 $ 40,280 $ 28,459 $ 19,879 $ 88,618

Six Fiscal Months Ended July 1, 2023 Six Fiscal Months Ended July 2, 2022

Sensors Weighing Solutions Measurement Systems Total Sensors Weighing Solutions Measurement Systems Total

United States $ 27,229 $ 28,107 $ 23,533 $ 78,869 $ 26,475 $ 26,541 $ 21,773 $ 74,789

United Kingdom 1,726 7,833 171 9,730 1,810 8,193 459 10,462

Other Europe 17,958 20,067 4,406 42,431 15,816 19,351 2,999 38,166

Israel 8,094 126 — 8,220 15,381 300 — 15,681

Asia 17,985 6,987 3,547 28,519 18,548 6,842 1,821 27,211

Canada — — 11,897 11,897 — — 9,974 9,974

Total $ 72,992 $ 63,120 $ 43,554 $ 179,666 $ 78,030 $ 61,227 $ 37,026 $ 176,283

The following table disaggregates net revenue from contracts with customers by market sector (in thousands) .

Fiscal quarter ended

April 1, 2023 April 2, 2022

Fiscal quarter ended Six fiscal months ended

July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022

Test & Measurement $ 18,705 $ 21,483 $ 37,369 $ 39,456

13 unchanged sentences

The outstanding contract assets and liability accounts were as follows (in thousands) :

Note 2 – Revenues (continued)

Contract Asset Contract Liability

1 unchanged sentence

Balance at December 31, 2022 $ 3,990 $ 7,983

Balance at April 1, 2023 4,223 8,618

Balance at July 1, 2023 4,170 8,633

Increase $ 180 $ 650

The amount of revenue recognized during the three fiscal months ended April 1, 2023 that was included in the contract liability balance at December 31, 2022 was $ 3.3 million

The amount of revenue recognized during the six fiscal months ended July 1, 2023 that was included in the contract liability balance at December 31, 2022 was $ 6.2 million

Note 3 – Goodwill

1 unchanged sentence

The change in the carrying amount of goodwill by segment is as follows (in thousands):

Note 3 – Goodwill (continued)

Total Measurement Systems Weighing Solutions

2 unchanged sentences

Foreign currency translation adjustment 159 151 8 — —

Balance at April 1, 2023 $ 45,567 $ 6,328 $ 16,895 $ 16,033 $ 6,311

Balance at July 1, 2023 $ 45,703 $ 6,464 $ 16,895 $ 16,033 $ 6,311

Note 4 – Leases

The Company primarily leases office and manufacturing facilities in addition to vehicles, which have remaining terms of less than one year to fourteen years .

The Company primarily leases office and manufacturing facilities in addition to vehicles, which have remaining terms of less than one year to thirteen years .

The Company has no finance leases.

Leases recorded on the balance sheet consist of the following (in thousands) :

Leases April 1, 2023 December 31, 2022

Leases July 1, 2023 December 31, 2022

Operating lease right of use asset $ 23,663 $ 24,342

2 unchanged sentences

Other information related to lease term and discount rate is as follows:

April 1, 2023

Operating leases weighted average remaining lease term (in years) 7.24 years

1 unchanged sentence

The components of lease expense are as follows (in thousands) :

Fiscal quarter ended

April 1, 2023 April 2, 2022

Note 4 - Leases (continued)

Fiscal quarter ended Six Fiscal Months Ended

July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022

Operating lease cost $ 1,247 $ 1,299 $ 2,491 $ 2,609

2 unchanged sentences

Total net lease cost $ 1,194 $ 1,211 $ 2,384 $ 2,434

Right of use assets obtained in exchange for new operating lease liability during the three fiscal months ended April 1, 2023 were $ 1.0 million.

The Company paid $ 1.2 million and $ 1.3 million for its operating leases for each of the three fiscal months ended April 1, 2023 and April 2, 2022, which are included in operating cash flows on the consolidated condensed statements of cash flows.

Undiscounted maturities of operating lease payments as of April 1, 2023 are summarized as follows (in thousands) :

Note 4 - Leases (continued)

2023 (excluding the three months ended April 1, 2023) $ 3,512

Right of use assets obtained in exchange for new operating lease liability during the six fiscal months ended July 1, 2023 were $ 1.5 million.

The Company paid $ 2.5 million and $ 2.6 million for its operating leases for each of the six fiscal months ended July 1, 2023 and July 2, 2022, which are included in operating cash flows on the consolidated condensed statements of cash flows.

Undiscounted maturities of operating lease payments as of July 1, 2023 are summarized as follows (in thousands) :

2023 (excluding the six months ended July 1, 2023) $ 2,370

Thereafter 9,158

4 unchanged sentences

VPG calculates the tax provision for interim periods using an estimated annual effective tax rate methodology based on projected full-year pre-tax earnings among the taxing jurisdictions in which we operate with adjustments for discrete items.

The effective tax rate for the fiscal quarter ended April 1, 2023 was 24.1 % compared to 20.7 % for the fiscal quarter ended April 2, 2022.

The effective tax rate for the fiscal quarter ended April 1, 2023 differs from the federal statutory rate of 21% primarily due to foreign income taxed at different tax rates and changes in our valuation allowance on deferred tax assets.

The effective tax rate was 28.8 % and 19.2 % for the fiscal quarter ended July 1, 2023, and July 2, 2022, respectively.

The effective tax rate for the fiscal quarter ended July 1, 2023 differs from the federal statutory rate of 21% due to foreign income taxed at different tax rates and changes in our valuation allowance on deferred tax assets.

The effective tax rate for the fiscal quarter ended July 2, 2022 differs from the federal statutory rate of 21% due to foreign income taxed at different tax rates and changes in our valuation allowance on deferred tax assets.

The Company and its subsidiaries are subject to income taxes imposed by the U.S., various states, and the foreign jurisdictions in which we operate.

8 unchanged sentences

Long-term debt consists of the following (in thousands) :

April 1, 2023 December 31, 2022

July 1, 2023 December 31, 2022

2020 Credit Agreement - Revolving Facility $ 61,000 $ 61,000

1 unchanged sentence

Total long-term debt $ 60,799 $ 60,799

On May 5, 2023, the Company entered into Amendment No.

1 to Third Amended and Restated Credit Agreement (the “Credit Agreement Amendment”), by and among the Company, the lenders named therein, Citizens Bank, National Association and

Note 6 - Long-Term Debt (continued)

Wells Fargo Bank, National Association as joint lead arrangers and JPMorgan Chase Bank, National Association as agent for such lenders.

The Credit Agreement Amendment amends the Third Amended and Restated Credit Agreement, dated March 20, 2020, by and among the Company, the lenders named therein, Citizens Bank, National Association and Wells Fargo Bank, National Association as joint lead arrangers and JPMorgan Chase Bank, National Association as agent for such lenders.

The primary purpose of the changes made in the Credit Agreement Amendment were to update the interest rate provisions to replace LIBOR with SOFR for U.S.

dollar denominated loans as well as update the other applicable reference borrowing rates for foreign currency loans which took effect on June 15, 2023 .

There is no material impact in interest expense or the loan balance as a result of the rate change.

Note 7 – Accumulated Other Comprehensive Income (Loss)

6 unchanged sentences

Amounts reclassified from accumulated other comprehensive income — 2 2

Balance at April 1, 2023 $ ( 39,987 ) $ 592 $ ( 39,395 )

Note 7 – Accumulated Other Comprehensive Income (Loss) (continued)

Balance at July 1, 2023 $ ( 41,667 ) $ 591 $ ( 41,076 )

Foreign Currency Translation Adjustment Pension

4 unchanged sentences

Amounts reclassified from accumulated other comprehensive income 191 162 353

Balance at April 2, 2022 $ ( 32,068 ) $ ( 4,651 ) $ ( 36,719 )

Balance at July 2, 2022 $ ( 40,011 ) $ ( 4,570 ) $ ( 44,581 )

Reclassification of foreign currency translation adjustment for the loss on liquidation of subsidiaries is included in other income and expense other (see Note 12).

2 unchanged sentences

Employees of VPG participate in various defined benefit pension and other postretirement benefit ("OPEB") plans.

The following table sets forth the components of the net periodic benefit cost for the Company's defined benefit pension and OPEB plans (in thousands) :

T he following table sets forth the components of the net periodic benefit cost for the Company's defined benefit pension and OPEB plans (in thousands) :

Note 8 - Pension and Other Postretirement Benefits ( continued)

Fiscal quarter ended

April 1, 2023 Fiscal quarter ended

April 2, 2022

July 1, 2023 Fiscal quarter ended

Plans Pension

2 unchanged sentences

Expected return on plan assets ( 214 ) ( 119 ) —

Amortization of actuarial losses 8 ( 6 ) 74 1

Amortization of actuarial losses (gains) 7 ( 6 ) 72 1

Net periodic benefit cost $ 53 $ 26 $ 154 $ 25

Six Fiscal Months Ended

July 1, 2023 Six Fiscal Months Ended

Plans Pension

Net service cost $ 137 $ 8 $ 165 $ 14

Interest cost $ 382 $ 56 $ 243 $ 34

Expected return on plan assets $ ( 426 ) $ — $ ( 242 ) $ —

Amortization of actuarial losses (gains) $ 15 $ ( 12 ) $ 146 $ 2

Net periodic benefit cost $ 108 $ 52 $ 312 $ 50

Note 9 – Share-Based Compensation

1 unchanged sentence

2022 Stock Incentive Plan (the "2022 plan") permits issuance of up to 608,000 shares of common stock.

At April 1, 2023, the Company had reserved 540,014 shares of common stock for future grants of equity awards (restricted stock, unrestricted stock, restricted stock units ("RSUs"), or stock options) pursuant to the 2022 plan.

At July 1, 2023, the Company had reserved 525,239 shares of common stock for future grants of equity awards (restricted stock, unrestricted stock, restricted stock units ("RSUs"), or stock options) pursuant to the 2022 plan.

If any outstanding awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for re-grant to others.

9 unchanged sentences

The performance-based portion of the RSUs will also vest on January 1, 2026, subject to the employees' continued employment and the satisfaction of certain performance objectives relating to three-year cumulative earnings and cash flow goals, each weighted equally.

On May 24, 2023, and in accordance with the Company's 2017 Non-Employee Director Compensation Plan, the Board of Directors approved the issuance of an aggregate of 13,923 RSUs to the independent board members of the Board of Directors.

The awards have an aggregate grant-date fair value of $ 0.5 million and will vest on the earlier of the 2024 Annual Stockholders Meeting or May 24, 2024, subject to each applicable director's continued service on the Board of Directors.

Vesting of equity awards is subject to acceleration under certain circumstances.

4 unchanged sentences

The following table summarizes share-based compensation expense recognized (in thousands) :

Fiscal quarter ended

April 1, 2023 April 2, 2022

Fiscal quarter ended Six fiscal months ended

July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022

Share-based compensation expense $ 548 $ 527 $ 1,229 $ 1,024

During the second quarter of 2023, a net adjustment of $ 0.1 million decreasing share-based compensation expense was recorded based on the evaluation of performance objectives associated with awards granted in 2021 and 2022.

It was determined that certain objectives were not likely to be fully met necessitating a reversal of certain compensation expenses associated with those awards.

Note 10 – Segment Information

10 unchanged sentences

Note 10 - Segment Information (continued)

Fiscal quarter ended

April 1, 2023 April 2, 2022

Fiscal quarter ended Six fiscal months ended

July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022

Net revenues:

23 unchanged sentences

The table below summarizes intersegment sales (in thousands) :

Fiscal quarter ended

April 1, 2023 April 2, 2022

Fiscal quarter ended Six fiscal months ended

July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022

Sensors to Weighing Solutions $ 433 $ 433 $ 761 $ 822

2 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share attributable to VPG stockholders (in thousands, except earnings per share) :

Fiscal quarter ended

April 1, 2023 April 2, 2022

Fiscal quarter ended Six fiscal months ended

July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022

Numerator for basic earnings per share:

14 unchanged sentences

The caption “Other” on the consolidated condensed statements of operations consists of the following (in thousands) :

Fiscal quarter ended

April 1, 2023 April 2, 2022

Fiscal quarter ended Six fiscal months ended

July 1, 2023 July 2, 2022 July 1, 2023 July 2, 2022

Foreign currency exchange gain $ 793 $ 3,380 $ 855 $ 3,934

2 unchanged sentences

Other ( 59 ) ( 12 ) ( 138 ) ( 115 )

$ 1,019 $ 3,344 $ 1,294 $ 3,783

Foreign currency exchange gains represent the impact of changes in foreign currency exchange rates.

For the fiscal quarter ended April 1, 2023, the change in foreign currency exchange gains and losses during the period, as compared to the prior year period, is largely due to exposure of currency fluctuations with the Japanese yen, the Canadian dollar, and the British pound.

Included in Other for the three fiscal months ended April 2, 2022 is a $ 0.2 million loss on the liquidation of two of the Company's European subsidiaries.

For the fiscal quarter and six fiscal months ended July 1, 2023, the change in foreign currency exchange gains and losses during the periods, as compared to the prior year periods, is largely due to exposure to currency fluctuations with the Israeli shekel, the Canadian dollar, and the British pound.

Note 12 – Additional Financial Statement Information ( continued)

For the fiscal quarter and six fiscal months ended July 2, 2022, the change in foreign exchange gains and losses during the periods, as compared to the prior year periods, is largely due to exposure to currency fluctuations with the Israeli shekel, the Japanese yen and the British pound.

The change in the dollar-shekel exchange rate resulted in a favorable foreign exchange impact primarily related to the shekel-denominated lease liability for the Sensors facility in Israel.

Included in Other for the six fiscal months ended July 2, 2022 is a $ 0.2 million loss on the liquidation of two of the Company's European subsidiaries.

Other Accrued Expenses

Other accrued expenses consist of the following (in thousands) :

April 1, 2023 December 31, 2022

July 1, 2023 December 31, 2022

Customer advance payments $ 8,633 $ 7,983

22 unchanged sentences

Inputs Level 3

April 1, 2023

Assets held in rabbi trusts $ 5,754 $ 110 $ 5,644 $ —

1 unchanged sentence

Assets held in rabbi trusts $ 5,427 $ 53 $ 5,374 $ —

Note 13 – Fair Value Measurements (continued)

The Company maintains non-qualified trusts, referred to as “rabbi” trusts, to fund payments under deferred compensation and non-qualified pension plans.

Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale money market funds at April 1, 2023 and December 31, 2022, and company-owned life insurance assets.

Rabbi trust assets consist primarily of marketable securities, classified as available-for-sale money market funds at July 1, 2023 and December 31, 2022, and company-owned life insurance assets.

The marketable securities held in the rabbi trusts are valued using quoted market prices on the last business day of the period.

The company-owned life insurance assets are valued in consultation with the Company’s insurance brokers using the value of underlying assets of the insurance contracts.

The fair value measurement of the cash equivalents held in the rabbi trust are considered a Level 1

Note 13 – Fair Value Measurements (continued)

measurement and the measurement of the company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy.

The fair value of the long-term debt, excluding capitalized deferred financing costs, at April 1, 2023 and December 31, 2022 approximates its carrying value as the revolving debt is reset on a monthly basis based on current market rates, plus a base rate as specified in the debt agreement.

The fair value measurement of the cash equivalents held in the rabbi trust are considered a Level 1 measurement and the measurement of the company-owned life insurance assets is considered a Level 2 measurement within the fair value hierarchy.

The fair value of the long-term debt, excluding capitalized deferred financing costs, at July 1, 2023 and December 31, 2022 approximates its carrying value as the revolving debt is reset on a monthly basis based on current market rates, plus a base rate as specified in the debt agreement.

The fair value of long-term debt is considered a Level 2 measurement within the fair value hierarchy.

6 unchanged sentences

If the initial estimates are too low or too high, the Company could be required either to record additional expense in future periods or to reverse part of the previously recorded charges.

The Company recorded $ 0.1 million and $ 0.3 million of restructuring costs during the fiscal quarter ended April 1, 2023 and April 2, 2022, respectively.

The Company recorded $ 0.2 million and $ 0.9 million of restructuring costs during the fiscal quarter ended July 1, 2023 and July 2, 2022, respectively and $ 0.3 million and $ 1.2 million of restructuring costs during the six fiscal months ended July 1, 2023 and July 2, 2022, respectively.

Restructuring costs were comprised primarily of employee termination costs, including severance and statutory retirement allowances, and were incurred in connection with various cost reduction programs.

The following table summarizes recent activity related to all restructuring programs.

The accrued restructuring liability balance as of April 1, 2023 and December 31, 2022, respectively, is included in Other accrued expenses in the accompanying consolidated condensed balance sheets (in thousands) :

The accrued restructuring liability balance as of July 1, 2023 and December 31, 2022, respectively, is included in Other accrued expenses in the accompanying consolidated condensed balance sheets (in thousands) :

Balance at December 31, 2022 $ 183

2 unchanged sentences

Foreign currency translation 2

Balance at April 1, 2023 $ 14

Balance at July 1, 2023 $ 61

Note 15 – Subsequent Event

On August 8, 2023, the Company announced that its Board of Directors extended the term of the previously approved stock repurchase plan to August 9, 2024.

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