Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 194 words changed in this paragraph; it is 45% similar to last year's version.
Changes in the tax laws and regulations of the jurisdictions where we do business, including an increase in tax rates or an adverse change in the treatment of an item of income or expense, could result in a material increase in our tax expense and/or tax payments, could increase tax uncertainty and could have a material adverse impact on our business, financial condition or results of operations.Tax law changes in certain foreign jurisdictions in which we operate conforming to Pillar Two of the base erosion and profit shifting plan (“Pillar Two”) undertaken by the operations. The Organisation for Economic Co-operation and Development began (OECD) has a framework to take implement a global minimum corporate tax of 15% for companies with global revenue and profits above certain thresholds (referred to as Pillar 2). Although the U.S. has not enacted legislation to implement Pillar 2, certain countries in which we operate have adopted legislation, and other countries are in the process of introducing legislation to implement Pillar 2. The OECD issued new administrative guidance on January 5, 2026, with respect to Pillar 2 which modifies key aspects of the framework for countries to enact in their own laws. It remains uncertain whether or how countries will implement Pillar 2 and the OECD administrative guidance, which may have a further adverse effect in 2024. We expect the implementation and interpretation of Pillar Two across jurisdictions where we do business to have adverse effects on our effective tax rate, results of operations, and cash flows. These tax law changes require profits earned in such jurisdictions to be subject to a minimum 15 percent income tax rate. liabilities.
Source: Item 1A, 10-K 0001193125-26-059853 vs Item 1A, 10-K 0000950170-25-026604
MD&A 161 words changed in this paragraph; it is 42% similar to last year's version.
In 2024, 2025, our net sales increased 3.8 7.2 percent when compared to 2023. 2024. Net sales growth was driven by a combination of our acquisition of Paragon 28, Inc. (“Paragon 28”) on April 21, 2025, market growth, new product introductions, positive price realization and commercial execution across lower net sales in the organization. These favorable items were negatively impacted by our transition in July 2024 prior year due to operational challenges fulfilling customer orders as a consequence of a new enterprise resource planning ("ERP") software system for implementation. Paragon 28 had a significant portion of positive impact on our U.S. and Canada sales and commercial operations. As a result of this ERP implementation, we experienced operational challenges which affected our ability to fulfill certain customer orders. This disruption mostly affected our U.S. net sales, but our International net sales were also impacted as shipments to our international affiliates were delayed. Shipping levels returned to similar levels that existed prior to the implementation by the end growth of the year. For the full year 2024, we estimate this ERP implementation had less than a one 2.5 percent impact to our net sales. in 2025. In addition, our net sales in 2024 were tempered by experienced a negative 1.0 positive effect of 0.8 percent effect from changes in foreign currency exchange rates. rates in 2025.
Source: Item 7, 10-K 0001193125-26-059853 vs Item 7, 10-K 0000950170-25-026604
Accounting Policies 84 words changed in this paragraph; it is 77% similar to last year's version.
Intangible assets with an indefinite life, including certain trademarks and trade names and in-process research and development (“IPR&D”) projects, are not amortized. Indefinite life intangible assets are assessed annually to determine whether events and circumstances continue to support an indefinite life. Intangible assets with an indefinite life are tested for impairment annually or whenever events or circumstances indicate that the fair value of the asset is more likely than not below its carrying amount. An impairment loss is recognized if the carrying amount exceeds the estimated fair value of the asset. The amount of the impairment loss to be recorded would be determined based upon the excess of the asset’s carrying value over its fair value. The fair values of indefinite lived intangible assets are determined based upon a discounted cash flow analysis using the relief from royalty method or a qualitative assessment may be performed for any changes to the asset’s fair value from the last quantitative assessment. The relief from royalty method estimates the cost savings associated with owning, rather than licensing, assets. Significant assumptions are incorporated into these discounted cash flow analyses such as estimated growth rates, royalty rates and risk-adjusted discount rates. We may do a qualitative assessment when the results of the previous quantitative test indicated that the asset’s fair value was significantly in excess of its carrying value.
Source: Item 8, Note 2 – Significant Accounting Policies, 10-K 0001193125-26-059853 vs Item 8, Note 2 – Significant Accounting Policies, 10-K 0000950170-25-026604
Legal Proceedings 11 words changed in this paragraph; it is 95% similar to last year's version.
We recognize litigation-related charges and gains in Selling, general and administrative expense on our consolidated statement of earnings. During the years ended December 31, 2024, 2025, 2024 and 2023, and 2022, we recognized $22.7 million, $30.5 million, $21.6 million and $65.9 $21.6 million, respectively, of net litigation-related charges. At December 31, 2024 2025 and 2023, 2024, accrued litigation liabilities were $156.4 $136.2 million and $244.1 $156.4 million, respectively. These litigation-related charges and accrued liabilities reflect all of our litigation-related contingencies and not just the matters discussed below. contingencies. The ultimate cost of litigation could be materially different than the amount of the current estimates and accruals and could have a material adverse impact on our financial condition and results of operations.
Source: Item 3, via Note 20 – Commitments and Contingencies, 10-K 0001193125-26-059853 vs Item 3, via Note 21 – Commitments and Contingencies, 10-K 0000950170-25-026604