A.O. Smith Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>A.O. Smith Corporation filed its 2023 annual report (10-K) detailing financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

SMITH A O CORP (AOS) filed a Annual Report (10-K) with the SEC on February 13, 2024. A.O. Smith Corporation filed its 2023 Form 10-K on February 13, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is in Household Appliances (SIC 3630). The filing includes financial data for the fiscal years 2021, 2022, and 2023. The company is incorporated in Delaware and headquartered in Milwaukee, WI.

Why It Matters

For investors and stakeholders tracking SMITH A O CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of A.O. Smith's financial health, operational performance, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess the company's trajectory. The detailed financial statements and risk factors within the report offer insights into the company's ability to navigate market conditions and manage potential challenges in the household appliance sector.

Risk Assessment

Risk Level: medium — SMITH A O CORP shows moderate risk based on this filing. The company operates in the household appliance sector, which can be subject to economic downturns and changing consumer spending habits, as indicated by the nature of its business and the need for detailed financial reporting.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand A.O. Smith's performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-13 — Filing Date (Filed as of Date)
• 3630 — SIC Code (Standard Industrial Classification)
• 4143594000 — Business Phone (Business phone number)

Key Players & Entities

• SMITH A O CORP (company) — Filer name
• A.O. Smith Corporation (company) — Company name in summary
• Milwaukee, WI (location) — Business and mailing address
• 390619790 (organization_id) — IRS Number
• DE (location) — State of Incorporation

Forward-Looking Statements

• A. O. Smith Corp. will continue to operate primarily within the household appliances sector. (SMITH A O CORP) — high confidence, target: 2025-12-31

FAQ

Industry Context

A.O. Smith Corporation operates within the Household Appliances industry, a sector characterized by consumer durables and often influenced by housing market trends and economic conditions.

Regulatory Implications

The filing is a Form 10-K, a mandatory annual report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies, detailing financial performance and business operations.

What Investors Should Do

1. Review A.O. Smith's detailed financial statements for the fiscal year 2023.
2. Analyze the risk factors section for potential business challenges.
3. Compare 2023 performance against previous years' data if available in the full filing.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-13: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted; comparison to a previous filing requires access to that specific document.

Key Financial Figures

• $5.00 — ered Class A Common Stock (par value $5.00 per share) None 25,887,352 Not listed
• $1.00 — 52 Not listed Common Stock (par value $1.00 per share) AOS 121,307,743 New York Sto
• $97.5 m — development in 2023, 2022 and 2021 were $97.5 million, $89.0 million and $94.2 million,
• $89.0 million — 2023, 2022 and 2021 were $97.5 million, $89.0 million and $94.2 million, respectively. PATEN
• $94.2 m — 1 were $97.5 million, $89.0 million and $94.2 million, respectively. PATENTS AND TRADE

Filing Documents

• aos-20231231.htm (10-K) — 1870KB
• aos2023123110p.htm (EX-10.P) — 15KB
• aos-20231231xex21.htm (EX-21) — 24KB
• aos-20231231xex23.htm (EX-23) — 3KB
• aos-20231231xex311.htm (EX-31.1) — 10KB
• aos-20231231xex312.htm (EX-31.2) — 10KB
• aos-20231231xex321.htm (EX-32.1) — 5KB
• aos-20231231xex322.htm (EX-32.2) — 5KB
• aos-20231231_g1.jpg (GRAPHIC) — 102KB
• aos2023123110p001.jpg (GRAPHIC) — 186KB
• aos2023123110p002.jpg (GRAPHIC) — 206KB
• aos2023123110p003.jpg (GRAPHIC) — 199KB
• aos2023123110p004.jpg (GRAPHIC) — 252KB
• aos2023123110p005.jpg (GRAPHIC) — 222KB
• 0000091142-24-000041.txt (&nbsp;) — 13980KB
• aos-20231231.xsd (EX-101.SCH) — 78KB
• aos-20231231_cal.xml (EX-101.CAL) — 119KB
• aos-20231231_def.xml (EX-101.DEF) — 522KB
• aos-20231231_lab.xml (EX-101.LAB) — 1099KB
• aos-20231231_pre.xml (EX-101.PRE) — 789KB
• aos-20231231_htm.xml (XML) — 2068KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 12

C

Item 1 C . Cybersecurity 13 Item 2.

Properties

Properties 14 Item 3.

Legal Proceedings

Legal Proceedings 14 Item 4. Mine Safety Disclosures 14 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17 Item 6.

Selected Financial Data

Selected Financial Data 18 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 28 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 58 Item 9A.

Controls and Procedures

Controls and Procedures 58 Item 9B. Other Information 59

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 59 Part III Item 10. Directors, Executive Officers and Corporate Governance 61 Item 11.

Executive Compensation

Executive Compensation 61 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 62 Item 13. Certain Relationships and Related Transactions and Director Independence 62 Item 14. Principal Accounting Fees and Services 62 Part IV Item 15. Exhibits, Financial Statement Schedules 63 2 Table of Contents PART 1

– BUSINESS

ITEM 1 – BUSINESS As used in this annual report on Form 10-K, references to the "Company," "A. O. Smith," "AOS," "we," "us," and "our" refer to A. O. Smith and its consolidated subsidiaries. The following discussion should be read in conjunction with our consolidated financial statements and notes thereto under "Item 8 Financial Statements and Supplementary Data" in this annual report on Form 10-K. Our company is comprised of two reporting segments: North America and Rest of World. Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, heat pumps, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world. Our Rest of World segment is primarily comprised of China, Europe and India. NORTH AMERICA Sales in our North America segment accounted for approximately 75 percent of our total sales in 2023. This segment serves residential and commercial end markets with a broad range of products including: Water heaters . Our residential and commercial water heaters, primarily come in sizes ranging from 40 to 80 gallon models, however, we also offer sizes as low as 2.5 gallon (point-of-use) and as high as 2,500 gallon products with varying efficiency ranges. We offer electric, natural gas and liquid propane tank-type models as well as tankless (gas and electric), heat pump and solar tank units. Typical applications for our water heaters include residences, restaurants, hotels, office buildings, laundries, car washes, schools and small businesses. Boilers. Our residential and commercial boilers range in size from 45,000 British Thermal Units (BTUs) to 6.0 million BTUs. Boilers are closed loop water heating systems used primarily for space heating or hydronic heating. Our boilers are primarily used in applications in commercial settings for hospitals, schools, hotels and other large commercial buildings while residential boilers are used i

– RISK FACTORS

ITEM 1A – RISK FACTORS In the ordinary course of our business, we face various strategic, operating, compliance and financial risks. These risks could have an impact on our business, financial condition, operating results and cash flows. The risks set forth below are not an exhaustive list of potential risks but reflect those that we believe to be material. You should carefully consider the risk factors set forth below and all other information contained in this Annual Report on Form 10-K, including the documents incorporated by reference, before making an investment decision regarding our common stock. If any of the events contemplated by the following risks were to actually occur, then our business, financial condition, or results of operations could be materially adversely affected. As a result, the trading price of our common stock could decline, and you may lose all or part of your investment. Economic and Industry Risks The effects of global and regional economic conditions could have a material adverse effect on our business A decline in economic activity, such as a recession or economic downturn, in the U.S. and other regions in the world in which we do business, could further adversely affect consumer confidence and spending patterns which could result in decreased demand for the products we sell, a delay in purchases, increased price competition, slower adoption of energy-efficient water heaters and boilers, or high-quality water treatment products, which could negatively impact our profitability and cash flows. Such deterioration in economic conditions could arise from many factors or fears including public health crises, political instability or risk of government default. In addition, an increase in price levels generally or in particular industries (such as the inflation in steel prices in 2021 and the recent inflation in other material and logistics costs), could result in a consumer shift away from the products we offer, which could adversely aff

View Full Filing

View this 10-K filing on SEC EDGAR