2023 Q1 Form 10-K Financial Statement

#000007375623000009 Filed on February 24, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $537.0M $536.2M $2.066B
YoY Change 20.36% 14.89% 10.53%
Cost Of Revenue $459.4M $446.1M $1.759B
YoY Change 14.66% 15.11% 9.56%
Gross Profit $77.57M $90.10M $307.4M
YoY Change 70.55% 13.82% 16.4%
Gross Profit Margin 14.44% 16.8% 14.88%
Selling, General & Admin $50.82M $47.93M $196.5M
YoY Change 9.23% -47.76% -12.37%
% of Gross Profit 65.51% 53.19% 63.93%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $27.82M $27.84M $113.0M
YoY Change -7.26% -15.63% -16.91%
% of Gross Profit 35.87% 30.9% 36.76%
Operating Expenses $50.82M $47.93M $196.5M
YoY Change 9.23% -47.76% -12.37%
Operating Profit $26.75M $42.18M $110.9M
YoY Change -2674.59% -435.48% 178.56%
Interest Expense $9.283M -$6.553M $38.22M
YoY Change -1.69% -50.92% -1.53%
% of Operating Profit 34.7% -15.54% 34.47%
Other Income/Expense, Net $78.00K -$516.0K -$911.0K
YoY Change -82.43% -55.01% -33.46%
Pretax Income $22.65M $35.11M -$50.40M
YoY Change -353.13% -229.69% -59.69%
Income Tax $18.59M $11.98M $53.11M
% Of Pretax Income 82.08% 34.12%
Net Earnings $4.060M $23.13M $25.94M
YoY Change -121.13% -159.59% -152.61%
Net Earnings / Revenue 0.76% 4.31% 1.26%
Basic Earnings Per Share $0.04 $0.26
Diluted Earnings Per Share $0.04 $0.23 $0.26
COMMON SHARES
Basic Shares Outstanding 100.1M shares 100.3M shares 100.2M shares
Diluted Shares Outstanding 102.0M shares 101.4M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $511.3M $575.1M $575.1M
YoY Change 15.1% 5.65% 5.65%
Cash & Equivalents $505.0M $568.7M $568.7M
Short-Term Investments $6.369M $6.369M $6.369M
Other Short-Term Assets $74.42M $62.54M $56.17M
YoY Change 10.98% -8.57% -9.65%
Inventory $197.6M $184.4M $184.4M
Prepaid Expenses $56.17M
Receivables $317.9M $296.6M $481.4M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.305B $1.297B $1.297B
YoY Change 14.23% 9.18% 9.18%
LONG-TERM ASSETS
Property, Plant & Equipment $427.4M $438.4M $578.1M
YoY Change -11.01% -10.45% -9.07%
Goodwill $34.11M $34.34M
YoY Change -2.38% -1.63%
Intangibles $11.52M
YoY Change -8.89%
Long-Term Investments $30.05M $30.05M
YoY Change -1.49% -1.49%
Other Assets $122.2M $122.2M $60.49M
YoY Change 19.82% 17.24% -1.02%
Total Long-Term Assets $737.2M $734.6M $734.6M
YoY Change -2.91% -5.19% -5.19%
TOTAL ASSETS
Total Short-Term Assets $1.305B $1.297B $1.297B
Total Long-Term Assets $737.2M $734.6M $734.6M
Total Assets $2.042B $2.032B $2.032B
YoY Change 7.39% 3.51% 3.51%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $142.7M $148.0M $148.0M
YoY Change 32.15% 21.0% 21.0%
Accrued Expenses $309.8M $307.4M $262.5M
YoY Change 13.62% 5.78% 3.0%
Deferred Revenue $122.7M $113.0M
YoY Change 44.74% 28.1%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $575.2M $568.4M $568.4M
YoY Change 23.59% 13.42% 13.42%
LONG-TERM LIABILITIES
Long-Term Debt $700.7M $701.0M $701.0M
YoY Change -0.16% -0.16% -0.16%
Other Long-Term Liabilities $77.66M $84.65M $234.3M
YoY Change -2.42% -6.05% -5.25%
Total Long-Term Liabilities $778.4M $785.6M $935.2M
YoY Change -0.39% -0.83% -1.48%
TOTAL LIABILITIES
Total Short-Term Liabilities $575.2M $568.4M $568.4M
Total Long-Term Liabilities $778.4M $785.6M $935.2M
Total Liabilities $1.354B $1.354B $1.512B
YoY Change 8.56% 4.69% 3.71%
SHAREHOLDERS EQUITY
Retained Earnings $1.332B $1.328B
YoY Change 3.84% 1.99%
Common Stock $152.7M $183.6M
YoY Change -13.11% -8.82%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares 10.57M shares
Shareholders Equity $520.2M $519.7M $519.7M
YoY Change
Total Liabilities & Shareholders Equity $2.042B $2.032B $2.032B
YoY Change 7.39% 3.51% 3.51%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $4.060M $23.13M $25.94M
YoY Change -121.13% -159.59% -152.61%
Depreciation, Depletion And Amortization $27.82M $27.84M $113.0M
YoY Change -7.26% -15.63% -16.91%
Cash From Operating Activities -$42.92M $159.5M $120.9M
YoY Change -46.69% 13.91% -46.35%
INVESTING ACTIVITIES
Capital Expenditures $18.31M $25.95M $81.04M
YoY Change -5.23% -280.41% 61.44%
Acquisitions
YoY Change
Other Investing Activities -$1.346M $216.0K $3.000M
YoY Change -3838.89% -93.17% 159.29%
Cash From Investing Activities -$15.69M -$25.73M -$76.87M
YoY Change -18.63% 129.33% 125.03%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$4.936M 0.000 -$1.862M
YoY Change 124.16% -100.0% -98.17%
NET CHANGE
Cash From Operating Activities -$42.92M 159.5M $120.9M
Cash From Investing Activities -$15.69M -25.73M -$76.87M
Cash From Financing Activities -$4.936M 0.000 -$1.862M
Net Change In Cash -$63.77M 133.7M $30.63M
YoY Change -36.29% 45.63% -65.77%
FREE CASH FLOW
Cash From Operating Activities -$42.92M $159.5M $120.9M
Capital Expenditures $18.31M $25.95M $81.04M
Free Cash Flow -$61.23M $133.5M $39.84M
YoY Change -38.66% -13.51% -77.25%

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CY2021 us-gaap Cost Of Goods And Services Sold Depreciation And Amortization
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CY2021 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2020 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2021 us-gaap Provision For Other Credit Losses
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CY2022 us-gaap Deferred Income Tax Expense Benefit
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CY2021 us-gaap Deferred Income Tax Expense Benefit
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CY2020 us-gaap Deferred Income Tax Expense Benefit
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CY2021 us-gaap Inventory Write Down
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CY2020 us-gaap Inventory Write Down
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CY2021 us-gaap Gain Loss On Sale Of Property Plant Equipment
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CY2020 us-gaap Gain Loss On Sale Of Property Plant Equipment
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CY2022 us-gaap Share Based Compensation
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CY2021 us-gaap Share Based Compensation
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CY2020 us-gaap Share Based Compensation
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CY2021 us-gaap Other Noncash Income
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CY2020 us-gaap Other Noncash Income
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CY2022 us-gaap Increase Decrease In Inventories
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CY2021 us-gaap Increase Decrease In Other Operating Assets
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CY2020 us-gaap Increase Decrease In Other Operating Assets
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CY2021 oii Effect Of Exchange Rate On Working Capital
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CY2020 oii Effect Of Exchange Rate On Working Capital
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CY2021 us-gaap Increase Decrease In Accounts Payable
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CY2020 us-gaap Increase Decrease In Accounts Payable
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CY2022 us-gaap Increase Decrease In Other Noncurrent Liabilities
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CY2020 us-gaap Increase Decrease In Other Noncurrent Liabilities
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274621000 usd
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633398000 usd
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CY2021 us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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CY2020 us-gaap Proceeds From Sale Of Available For Sale Securities Debt
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2020 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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30631000 usd
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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78361000 usd
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2020 us-gaap Profit Loss
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CY2020Q4 us-gaap Stockholders Equity
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CY2021 us-gaap Profit Loss
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CY2021 us-gaap Profit Loss
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CY2022 us-gaap Profit Loss
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CY2022 us-gaap Profit Loss
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CY2022Q4 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2022 us-gaap Subsidiary Or Equity Method Investee Cumulative Percentage Ownership After All Transactions
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<span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates.</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%"> </span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires that our management make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates.</span>
CY2022 us-gaap Prior Period Reclassification Adjustment Description
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<span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Reclassifications.</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> Certain amounts from prior periods have been reclassified to conform with the current year presentation.</span>
CY2020Q1 us-gaap Allowance For Doubtful Accounts Receivable
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CY2022Q4 us-gaap Interest Receivable
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CY2022 oii Percentageof Completion Percentof Revenue
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CY2021 oii Percentageof Completion Percentof Revenue
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CY2022Q4 oii Revenue Recognitionfor Remaining Performance Obligations
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CY2022 oii Revenue Recognitionfor Remaining Performance Obligationsinnext24months
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CY2021Q4 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Operating Lease Liability Current
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CY2021Q4 us-gaap Operating Lease Liability Current
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CY2021 us-gaap Lease Cost
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Five
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
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CY2022Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2022Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
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CY2022Q4 us-gaap Operating Lease Liability
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CY2020Q1 us-gaap Goodwill Impairment Loss
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CY2020Q1 us-gaap Goodwill Impairment Loss
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CY2020Q1 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2020Q1 us-gaap Impairment Of Long Lived Assets Held For Use
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CY2022Q4 us-gaap Inventory Net
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CY2021Q4 us-gaap Inventory Net
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33012000 usd
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CY2020 oii Income Including Equity Affiliate Earnings Before Income Taxes
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COMMITMENTS AND CONTINGENCIES<div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Lease Commitments</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of December 31, 2022, we occupied several facilities under noncancellable operating leases expiring at various dates through 2035. See Note 4</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">—“</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Leases” for more information on our operating leases.</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Insurance</span></div><div style="margin-top:5pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The workers' compensation, maritime employer's liability and comprehensive general liability insurance policies that we purchase each include a deductible layer, for which we would be responsible, that we consider financially prudent. Insurance above the deductible layers can be by occurrence or in the aggregate. We determine the level of accruals for claims exposure by reviewing our historical experience and current year claim activity. We do not record accruals on a present-value basis. We review larger claims with insurance adjusters and establish specific reserves for known liabilities. We establish an additional reserve for incidents incurred but not reported to us for each year using our estimates and based on prior experience. We believe we have established adequate accruals for expected liabilities arising from those obligations. However, it is possible that future earnings could be affected by changes in our estimates relating to these matters.</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Litigation</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the ordinary course of business, we are, from time to time, involved in litigation or subject to disputes, governmental investigations or claims related to our business activities, including, among other things:</span></div><div style="margin-top:9pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">performance- or warranty-related matters under our customer and supplier contracts and other business arrangements; and </span></div><div style="margin-top:9pt;padding-left:36pt;text-align:justify;text-indent:-18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:14.5pt">workers’ compensation claims, Jones Act claims, occupational hazard claims, premises liability claims and other claims. </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Although we cannot predict the ultimate outcome of these matters, we believe that our ultimate liability, if any, that may result from these other actions and claims will not have a material adverse effect on our consolidated financial condition, results of operations or cash flows. However, because of the inherent uncertainty of litigation and other dispute resolution proceedings and, in some cases, the availability and amount of potentially available insurance, we can provide no assurance that the resolution of any particular claim or proceeding to which we are a party will not have a material effect on our consolidated financial condition, results of operations or cash flows for the fiscal period in which that resolution occurs.</span></div><div style="margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Letters of Credit</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We had $52 million and $46 million in letters of credit outstanding as of December 31, 2022 and 2021, respectively, which related to self-insurance requirements and various bid and performance bonds, which are usually for the duration of the applicable contract.</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Financial Instruments and Risk Concentration</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In the normal course of business, we manage risks associated with foreign exchange rates and interest rates through a variety of strategies, including the use of hedging transactions. As a matter of policy, we do not use derivative instruments unless we have an underlying exposure. Other financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents and accounts receivable.</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The carrying values of cash and cash equivalents approximate their fair values due to the short-term maturity of the underlying instruments. Accounts receivable are generated from a broad group of customers, primarily from the energy industry and the U.S. government, which are major sources of our revenue. Due to their short-term nature, carrying values of our accounts receivable and accounts payable approximate fair market values. </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We estimated the aggregate fair market value of the Senior Notes to be $661 million as of December 31, 2022 based on quoted prices. Since the market for the Senior Notes is not an active market, the fair value of the Senior Notes is classified within Level 2 in the fair value hierarchy under U.S. GAAP (inputs other than quoted prices in active markets for similar assets and liabilities that are observable or can be corroborated by observable market data for substantially the full terms for the assets or liabilities).</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Foreign currency gains (losses) in the year ended December 31, 2022 were less than $(0.1) million. Foreign currency gains (losses) of $(8.4) million in the year ended December 31, 2021 were primarily related to gains (losses) for the Angolan kwanza of $(4.5) million due to declining exchange rates for the Angolan kwanza relative to the U.S. dollar. Foreign currency gain (losses) of $(14) million in the year ended December 31, 2020 were primarily related to gains (losses) for the Angolan kwanza of $(2.8) million and the Brazilian real of $(7.3) million due to declining exchange rates for the Angolan kwanza and the Brazilian real relative to the U.S. dollar. Foreign currency transaction losses related to the Angolan kwanza in the years ended December 31, 2021 and 2020 were primarily </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">due to the remeasurement of our Angolan kwanza cash balances to U.S. dollars. Foreign currency losses related to the Brazilian real in the year ended December 31, 2020 were primarily due to the remeasurement of our U.S. dollar denominated liability balances to the Brazilian real. We recorded foreign currency transaction gains (losses) related to the Angolan kwanza and Brazilian real as a component of other income (expense), net in our Consolidated Statements of Operations in those respective periods. </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Any conversion of cash balances from kwanza to U.S. dollars is controlled by the central bank in Angola. As of December 31, 2022 and 2021, we had the equivalent of approximately $5.6 million and $1.0 million of kwanza cash balances, respectively, in Angola reflected on our Consolidated Balance Sheets.</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">To mitigate our currency exposure risk in Angola, we have used kwanza to purchase equivalent Angolan central bank (Banco Nacional de Angola) bonds. The bonds are denominated as U.S. dollar equivalents, so that, upon payment of semi-annual interest and principal upon maturity, payment is made in kwanza, equivalent to the respective U.S. dollars at the then-current exchange rate. As of December 31, 2022 and 2021, we had $6.2 million, respectively, of U.S. dollar equivalent Angolan bonds. These bonds mature in 2023 and are classified as available-for-sale securities; accordingly, they are recorded at fair market value in other current assets on our Consolidated Balance Sheets. We did not sell any of our remaining Angolan bonds in the year ended December 31, 2022; however, during the year ended December 31, 2021, we sold a portion of these bonds for $4.5 million, reducing the balance as of December 31, 2021 to $6.2 million, and recognized a gain of $0.5 million as a component of other income (expense), net in our Consolidated Statement of Operations.</span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We estimated the fair market value of the Angolan bonds to be $6.4 million as of December 31, 2022 and 2021, respectively, using quoted market prices. Since the market for the Angolan bonds is not an active market, the fair value of the Angolan bonds is classified within Level 2 in the fair value hierarchy under U.S. GAAP. As of December 31, 2022 and 2021, we had $0.1 million and $0.2 million, respectively, in unrealized gains, net of tax, related to these bonds as a component of accumulated other comprehensive loss in our Consolidated Balance Sheets. </span></div><div style="margin-top:9pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We made the decision during the fourth quarter of 2021 to terminate a number of entertainment ride systems contracts with Evergrande and recorded a net loss in our Manufactured Products segment. The specific elements of the net loss included a reserve of $49 million in receivables and contract assets partially offset by the reclassification of $20 million of contract assets into salable inventory. As of December 31, 2021, we had no outstanding accounts receivable or contract assets for those projects. </span></div>In the three-month period ended June 30, 2021, we were notified by a customer in our Manufactured Products segment that it was suspending a contract that was substantially complete. Specific to this contract, we billed and received $30 million in the year ended December 31, 2022 and $37 million of accounts receivable in the fourth quarter of 2021. As of December 31, 2022, we had outstanding contract assets of approximately $19 million for the contract and contract liabilities of $0.6 million prepaid for storage of components. As of December 31, 2021, we had outstanding contract assets of approximately $33 million for the contract and contract liabilities of $11 million prepaid for storage of components. We are in discussions with the customer concerning the timing of remaining payments. We continue to believe that we will realize these contract assets at their book values, although we can provide no assurance as to the timing of receipt of the remaining payments.
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