Cooper Standard(US:CPS)2022-02-17 16:00Indebtedness and Financial Condition - The company has a substantial amount of indebtedness, which could adversely affect its financial condition and ability to obtain future financing [79]. - The company’s variable rate indebtedness exposes it to interest rate risk, which could significantly increase debt service obligations if interest rates rise [82]. - The credit agreements governing the Term Loan Facility and ABL Facility impose significant operating and financial restrictions, limiting the company's ability to incur additional indebtedness and engage in certain business activities [83]. - The company’s ability to restructure or refinance its indebtedness will depend on capital market conditions and its financial condition at the time [81]. - The company relies on its subsidiaries for cash flow to meet obligations, which may be subject to restrictions under local laws [94]. Pension Plans - As of December 31, 2021, the company's U.S. pension plans were overfunded by $16.3 million, while non-U.S. pension plans were underfunded by $116.9 million [92]. Working Capital and Liquidity - The company’s working capital requirements can vary significantly, potentially affecting liquidity and capital resources if cash provided by operating activities is insufficient [87]. Foreign Currency and Exchange Rates - Foreign currency exchange rate fluctuations could materially impact the company's operating results, particularly during periods of a strengthening U.S. dollar [88]. - A 10% strengthening of the U.S. Dollar could result in a loss of $11.5 million, while a 10% weakening could yield a gain of $12.2 million [164]. - In 2021, net sales outside the U.S. accounted for 77% of consolidated net sales, impacting earnings due to foreign currency translation [166]. - Approximately 38.4% of total debt was at variable interest rates as of December 31, 2021, with a potential $3.7 million impact from a 100 basis points change in interest rates [166]. Legal and Regulatory Risks - The company may face legal and regulatory proceedings that could adversely impact its results of operations and financial condition [96]. - The introduction of new laws or regulations could adversely affect the company's financial condition and operational results [100]. Impairment and Environmental Risks - Impairment charges related to goodwill, long-lived assets, or intangible assets could adversely affect the company's results of operations [89]. - The company is subject to various environmental, health, and safety laws, which could increase operational costs and affect financial condition [100]. - Environmental compliance efforts may require substantial future expenditures due to changing regulations and climate change risks [100]. - The company maintains environmental reserves for certain sites, indicating potential future liabilities related to past ownership activities [100]. Risk Management - The company did not enter into interest rate swap contracts in 2021, indicating a shift in risk management strategy [166]. - The company has not entered into any commodity derivative instruments in 2021, despite experiencing volatility in raw material costs [166].