AOSA. O. Smith

1 paragraph in Risk Factors of the 10-K filed Feb 10, 2026 with nothing like it in the 10-K filed Feb 11, 2025. Quoted exactly. Paragraphs that were only edited are under 10-K change.

Compared with the Risk Factors in the latest 10-K of the other 81 Industrials companies: a paragraph with at least half its words the same at another company is called similar, and the companies are listed under it. A paragraph most of them have is marked boilerplate. No line means no other company has one like it. This counts text; it does not say how serious a risk is.

In 2025, we announced a strategic assessment of our China business. This may lead to uncertain outcomes, costs, and impacts that could negatively affect the company. The announcement might also cause uncertainty among employees, customers, suppliers, and investors that could have a material adverse effect on our financial position, results of operations and cash flows.

Similar paragraph at 2 of 81 other Industrials companies: NOC, RSG

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New in the latest 10-Q

4 paragraphs in the 10-Q filed Oct 29, 2026 with nothing like them in the 10-Q filed Jul 30, 2026 (at least half the words must differ; new numbers alone do not count). Quoted exactly, grouped by the item heading above them. This is text that changed, not a judgement of how serious it is.

Financial statements and notes

In July 2026, the Company entered into two loan agreements in China for 400 million RMB ($ 59.6 million at September 30, 2026) and 100 million RMB ($ 14.9 million at September 30, 2026), respectively. The loans mature in June 2027, and the terms of the agreements outline a balloon payment at maturity for each loan. The interest rate on the loans is variable based on the LPR (loan prime rate) minus 0.89 percent. For the three month period ending September 30, 2026, the interest rate for the loans was 2.11 percent. These loans have been classified as long term debt on the accompanying Condensed Consolidated Balance Sheets based on the Company's intent and ability to refinance the loans on a long-term basis. The Company maintains a revolving credit agreement with a maturity extending beyond twelve months from the balance sheet date and sufficient borrowing capacity to replace the loans with a long-term financing facility.

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Fair Value Measurement Using Balance Sheet Location September 30, December 31, 2025

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In 2025, the Company initiated an assessment of strategic opportunities for its China business, including strategic partnerships and other alternatives. On October 27, 2026, the Company entered into definitive agreements to sell an 81 % interest in its China business to CPE. The transaction values the China business at approximately $ 400 million. The Company will retain a 19 % interest and continue to participate in its future growth through a long-term brand licensing agreement. Upon closing of the transaction, the Company will deconsolidate the China business and expects to account for its retained ownership interest under the equity method. The transaction is expected to close in the first half of 2027, upon satisfaction of regulatory approvals and other customary closing conditions. The sale represents a strategic shift in the Company’s portfolio and the Company expects to classify the China business as held for sale and report it as discontinued operations beginning in the fourth quarter of 2026, with prior periods to be recast accordingly. The Company will also review its segment reporting structure during the fourth quarter of 2026.

Read in the 10-Q ↗

On October 27, 2026, we announced that we have entered into definitive agreements with CPE, a leading alternative asset manager, to sell an 81% interest in our China business. This concludes our China strategic assessment that was initiated in July 2025. We will continue to participate in its future growth by retaining a 19% interest and through a long-term brand licensing agreement. The transaction values the China business at approximately $400 million on a cash-free, debt-free basis, before taking into account the long-term brand licensing royalty stream. The transaction is expected to close in the first half of 2027, upon satisfaction of regulatory approvals and other customary closing conditions. We intend to prioritize share repurchases as a use of the after-tax proceeds and repatriated cash following the closing of the transaction. The sale represents a strategic shift in our portfolio and we expect to classify the China business as held for sale and report it as discontinued operations beginning in the fourth quarter of 2026, with prior periods to be recast accordingly. We will also review our segment reporting structure during the fourth quarter of 2026.

Read in the 10-Q ↗

The 10-Q's risk factors against the 10-K

Item 1A of the 10-Q filed Oct 29, 2026 against Item 1A of the 10-K filed Feb 10, 2026. A 10-Q repeats only the risks that changed, so a 10-K paragraph that is missing from it is not counted as removed. Added is a paragraph with nothing like it in the 10-K, Reworded a sentence that is in both with several words changed, Quiet changes a sentence in both where one to four words changed and one is a hedge or a modal (cut words struck through, new words highlighted and underlined). Text on the page, not a score; each links to the filing at sec.gov.

This 10-Q has no Item 1A (Risk Factors) text of its own, so there is nothing to compare. Many companies leave it out when their risks have not changed.