Risk Factors Update Summary

• The performance obligations for product sales now recognized at shipment, impacting revenue recognition.
• Unrecognized compensation costs related to options increased from $16.9 million to $22.9 million.
• The Term Loan Facility matures in November 2026, with future principal payments of $0 for fiscal 2024, $0 for fiscal 2025, $0 for fiscal 2026, and $675.0 for fiscal 2027.
• Cybersecurity risk management program expanded based on NIST framework to manage evolving risks.
• The company entered into a new Credit Facility, consisting of a $1,300.0 term loan facility and a $500.0 revolving credit facility, with debt issuance costs of $14.9.
• Net sales backlog increased from $663 to $821 million, a 10.1% year-over-year increase.
• The company refinanced its credit facilities, increasing the Term Loan Facility to $1,300.0 million.
• The Clawback Policy is effective from October 2, 2023, and applies to Incentive-Based Compensation received after this date.
• The company introduced a Clawback Policy to recoup executive compensation due to financial restatements.
• Revenue recognized when customer control obtained upon shipment, affecting revenue recognition timing.
• The New Credit Agreement was amended in December 2022 to replace LIBOR with SOFR, affecting the Company's margin and commitment fee rates.
• The risk-free interest rate increased from 3.05% to 4.20%, impacting investment decisions significantly.
• Labor problems reduced U.S.-based hourly employees from 9% to 7%.
• The total intrinsic value of liability classified awards vested increased from $0.0 million to $11.7 million.
• Total debt decreased from $1,395 to $1,191 million, potentially impacting profitability.
• The Clawback Policy applies to current and former executive officers and senior executives.
• Net cash provided by operating activities increased from $220.6 million in fiscal 2023 to $274.7 million in fiscal 2024.
• Goodwill increased from $1,869 to $1,874 million, representing 41% of total assets.
• The Term Loan matures in November 2026, with future principal payments of $0 for fiscal 2025, $0 for fiscal 2026, and $675.0 for fiscal 2027.
• The company's margin for SOFR loans increased to 1.25%, commitment fee rate to 0.20%, and letter of credit fee rate to 1.25%.
• Unrecognized expense for restricted stock increased from $16 million to $18 million.
• Expected volatility rose from 45.57% to 46.71%, affecting risk assessments and option pricing.
• Increase in contract assets from $3.9M to $6.9M and contract liabilities from $19.6M to $22.5M.
• The Clawback Policy covers Overpayments received during the three fiscal years before an Accounting Restatement.
• Capital expenditures decreased from $42.0 million in fiscal 2023 to $33.2 million in fiscal 2024.
• The weighted average exercise price for restricted stock awards rose from $201.60 to $205.50.
• The Company may seek recovery through reimbursement, offsetting, or canceling equity awards.
• Incentive-Based Compensation includes awards based on financial performance measures and stock price.
• The company's total comprehensive income rose from $168.4 million in fiscal 2023 to $214.7 million in fiscal 2024.
• Commitments for capital expenditures for environmental compliance increased from 2024 to 2025.
• Preferred stock balance decreased from $300 to $275 million, affecting future issuance potential.
• Goodwill increased from $1,624.8M to $1,675.7M due to the acquisition of Specline, Inc.
• The Company issued $500.0 aggregate principal amount of Senior Notes in fiscal 2022, with net proceeds of approximately $492.0, used for the acquisition of Dodge.
• Number of facilities outside the U.S. increased from 18 to 19, with 11 countries represented.
• Amortization expense for definite-lived intangible assets rose from $34.7M to $70.4M.
• The Board can amend or terminate the Clawback Policy at its discretion.
• The Company entered into a Foreign Credit Line with Credit Suisse, borrowing $2.1 and utilizing $0.1 for a bank guarantee, with nominal fees associated.
• The company's net income increased from $166.7 million in fiscal 2023 to $209.9 million in fiscal 2024.
• Inventory changes: Raw materials increased from $132.4M to $138.1M, work in process from $132.5M to $137.9M.
• The Company made dividend payments of $5.7 on various dates in 2023 and had accrued dividends of $4.8 as of March 30, 2024, for dividends to be paid.
• The Company completed offerings of Series A Mandatory Convertible Preferred Stock and common stock, using proceeds for acquisitions and dividend payments.
• Finance lease liabilities increased from $5.2M to $7.1M for one to two years, and from $5.7M to $6.5M for two to three years.