Amphastar Pharmaceuticals(US:AMPH)2026-02-26 21:41Financial Position - The company has $111.4 million in cash equivalents, including money market accounts, as of December 31, 2025[582]. - The company had $96.1 million in investment grade corporate and municipal bonds as of December 31, 2025[582]. - The company experienced a decline in cash equivalents from $102.1 million in 2024 to $111.4 million in 2025, indicating a growth in liquidity[582][583]. - The company maintains significant cash balances exceeding federally insured limits, which poses a normal business risk[584]. - As of December 31, 2025, the company had $610.4 million in long-term debt and finance leases, all with fixed interest rates or locked-in fixed rates through swap contracts[586]. Tax and Regulatory Risks - The company is subject to changes in tax laws, such as the 1% excise tax on stock repurchases and a 15% alternative minimum tax on adjusted financial statement income[468]. - The company is evaluating the impact of the OBBB Act on its financial position and results of operations[468]. - The company is subject to significant judgment in determining its worldwide provision for income taxes, which may lead to material differences in tax audits[469]. Market Risks - The company is exposed to market risks including investment risk, interest rate risk, and foreign currency exchange risk[580]. - The company is primarily exposed to interest rate risk through interest rate sensitive investments and credit facilities, but believes it is not subject to material risk with respect to short-term investments[585]. - The company's operations in France are exposed to market risk related to changes in foreign currency exchange rates due to sales contracts frequently denominated in euros[587]. Foreign Currency Exposure - A theoretical 10% unfavorable change in the exchange rate of the U.S. dollar against foreign currencies would result in approximately $0.1 million reduction of foreign currency gains and approximately $3.6 million reduction in other comprehensive income as of December 31, 2025[591]. - As of December 31, 2024, a theoretical 10% unfavorable change in the exchange rate would lead to approximately $1.2 million reduction of foreign currency gains and approximately $3.1 million reduction in other comprehensive income[592]. - The company's foreign subsidiaries had cash balances in foreign currencies amounting to $7.7 million and $6.6 million as of December 31, 2025 and 2024, respectively[592]. - The company may enter into derivative contracts to manage interest-rate exposures and achieve a balance between fixed- and floating-rate debt[585]. - The unrealized gains or losses from intercompany foreign currency transactions of a long-term investment nature are reported in other accumulated comprehensive income (loss)[589]. - The company's Chinese subsidiary maintains its books in Chinese yuan, which are remeasured into USD using current or historical exchange rates[588]. - The company is exposed to potential earnings effects from intercompany foreign currency assets and liabilities arising from normal trade receivables and payables[590]. Operational Risks - The company’s operating results may fluctuate significantly due to various factors, including the commercial success of key products and regulatory actions[475]. - The company recorded no declines in fair value of investments that are considered other than temporary as of December 31, 2025[581].