Allison Transmission Holdings Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Allison Transmission Holdings Inc. has filed its 2023 Form 10-K, detailing its financial performance and operational aspects for the fiscal year ending December 31, 2023.</b>

AI Summary

Allison Transmission Holdings Inc (ALSN) filed a Annual Report (10-K) with the SEC on February 14, 2024. Filing is the 2023 Form 10-K for Allison Transmission Holdings Inc. The report covers the fiscal year ending December 31, 2023. The company is incorporated in Delaware and headquartered in Indianapolis, Indiana. Standard Industrial Classification is MOTOR VEHICLE PARTS & ACCESSORIES [3714]. The filing includes details on various financial instruments and risks, such as interest rate swaps and credit concentration.

Why It Matters

For investors and stakeholders tracking Allison Transmission Holdings Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Allison Transmission's financial health, operational risks, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. The detailed disclosures on financial instruments, debt, and potential risks like customer and credit concentration offer insights into the company's risk management strategies and financial stability.

Risk Assessment

Risk Level: medium — Allison Transmission Holdings Inc shows moderate risk based on this filing. The filing mentions credit concentration risk with specific customers like Traton SE and customer concentration risk, indicating potential over-reliance on a few key clients which could impact revenue if those relationships falter.

Analyst Insight

Investors should review the detailed risk factors and financial statements in the 10-K to understand the company's exposure to market fluctuations and customer dependencies.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-14 — Filing Date (Date the report was filed)
• 135 — Public Document Count (Number of documents in the filing)
• 3714 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Allison Transmission Holdings Inc. (company) — Filer name
• Indianapolis (location) — Business and mailing address city
• DE (location) — State of incorporation
• Traton SE (company) — Mentioned in credit and customer concentration risk
• Dana J. Pittard (person) — Mentioned in relation to 2023-12-31

FAQ

Risk Factors

• Customer Concentration Risk [medium — market]: The company faces risk due to concentration of sales revenue with a limited number of customers, specifically mentioning Traton SE.
• Credit Concentration Risk [medium — financial]: There is a risk associated with the concentration of credit risk with a limited number of customers, also referencing Traton SE.
• Unionized Employees Concentration Risk [low — operational]: The company faces risk related to a concentration of unionized employees in the US.

Industry Context

Allison Transmission Holdings Inc. operates in the motor vehicle parts and accessories industry, specifically focusing on the design, manufacturing, and distribution of propulsion solutions for commercial and defense vehicles.

Regulatory Implications

The filing is a standard 10-K annual report required by the Securities and Exchange Commission (SEC) for publicly traded companies in the United States.

What Investors Should Do

1. Analyze the detailed financial statements and footnotes for revenue trends, profitability, and debt levels.
2. Evaluate the identified risk factors, particularly customer and credit concentration, and assess their potential impact on future performance.
3. Review management's discussion and analysis (MD&A) for insights into strategic priorities and outlook for the upcoming fiscal year.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-14: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed, so no comparison to a previous filing is available.

Key Financial Figures

• $0.01 — nge On Which Registered Common Stock, $0.01 par value ALSN New York Stock Excha

Filing Documents

• alsn-20231231.htm (10-K) — 3505KB
• alsn-ex4_5.htm (EX-4.5) — 27KB
• alsn-ex10_14.htm (EX-10.14) — 139KB
• alsn-ex10_18.htm (EX-10.18) — 29KB
• alsn-ex21_1.htm (EX-21.1) — 5KB
• alsn-ex23_1.htm (EX-23.1) — 3KB
• alsn-ex31_1.htm (EX-31.1) — 18KB
• alsn-ex31_2.htm (EX-31.2) — 18KB
• alsn-ex32_1.htm (EX-32.1) — 14KB
• alsn-ex97.htm (EX-97) — 60KB
• img105352165_0.jpg (GRAPHIC) — 85KB
• img105352165_1.jpg (GRAPHIC) — 130KB
• img105352165_2.jpg (GRAPHIC) — 83KB
• img105352165_3.jpg (GRAPHIC) — 82KB
• img105352165_4.jpg (GRAPHIC) — 320KB
• 0000950170-24-015192.txt (&nbsp;) — 17857KB
• alsn-20231231.xsd (EX-101.SCH) — 1998KB
• alsn-20231231_htm.xml (XML) — 3488KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31 Item 2.

Properties

Properties 33 Item 3.

Legal Proceedings

Legal Proceedings 33 Item 4. Mine Safety Disclosures 33 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 34 Item 6. [Reserved] 35 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 36 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 50 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 93 Item 9A.

Controls and Procedures

Controls and Procedures 93 Item 9B. Other Information 94 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 94 PART III. Item 10. Directors, Executive Officers and Corporate Governance 95 Item 11.

Executive Compensation

Executive Compensation 95 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 95 Item 13. Certain Relationships and Related Transactions, and Director Independence 95 Item 14. Principal Accountant Fees and Services 95 PART IV. Item 15. Exhibits and Financial Statement Schedules 96 Item 16. Form 10-K Summary 99

Signatures

Signatures 100 2 Table of Contents Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements. The words "believe," "expect," "anticipate," "intend," "estimate" and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management's good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of geopolitical risks, wars and pandemics; global economic volatility; general economic and industry conditions, including the risk of recession; labor strikes, work stoppages or similar labor disputes, which could sig

Business

ITEM 1. Business Overview Allison Transmission Holdings, Inc. and its subsidiaries ("Allison," "we," "us" or "our") design and manufacture vehicle propulsion solutions, including commercial-duty on-highway, off-highway and defense fully automatic transmissions and electric hybrid and fully electric systems. The business was founded in 1915 and has been headquartered in Indianapolis, Indiana since inception. Allison is traded on the New York Stock Exchange under the symbol "ALSN". We have a global presence by serving customers in North America, Asia, Europe, South America, and Africa, with approximately 75% of our revenues being generated in North America in 2023. We serve customers through an independent network of approximately 1,600 independent distributor and dealer locations worldwide. Our Business We are the world's largest manufacturer of fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles and a leader in electrified propulsion systems. Allison products are used in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school and transit), motorhomes, off-highway vehicles and equipment (primarily energy, mining and construction applications) and defense vehicles (tactical wheeled and tracked). We believe the Allison brand is one of the most recognized in our industry as a result of the performance, reliability and fuel efficiency of our propulsion solutions and is associated with high quality, durability, vocational value, technological leadership and superior customer service. We introduced the world's first fully automatic transmission for commercial vehicles over 75 years ago. Since that time, we have driven the trend in North America and other parts of the world towards increasing automaticity by targeting a diverse range of commercial vehicle vocations. Allison products are optimized for

View Full Filing

View this 10-K filing on SEC EDGAR