Donnelley Financial Solutions(US:DFIN)2022-02-21 16:00Financial Performance and Risks - The Company reported that approximately 14% of its net sales for the year ended December 31, 2021, were earned outside of the U.S., exposing it to foreign currency exchange risk [312]. - A hypothetical 10% strengthening of the U.S. dollar would decrease the Company's earnings before income taxes by approximately $2.4 million and total assets by about $6.4 million [313]. - A hypothetical 10% change in yield would alter the fair value of the Term Loan A Facility by approximately $12.4 million, or 10.0% [315]. - The Company has not been a party to any derivative financial instruments as of December 31, 2021, indicating a conservative approach to market risk management [310]. - Price increases in raw materials like paper and ink could be passed onto the Company, but a hypothetical 10% change in these prices would not significantly affect operations or cash flows [318]. Workforce and Diversity - As of December 31, 2021, the Company had approximately 2,185 employees, with a voluntary turnover rate of under 8.5% per year [66]. - The Company achieved a workforce total recordable incident rate of 0.32 (per 200,000 hours worked) in 2021, reflecting its commitment to health and safety [80]. - In 2021, approximately 59% of all U.S. hires and promotions at the manager level and above were women or people of color, indicating progress in diversity initiatives [73]. - The Company implemented a 401(k) match of 50 cents for every dollar an employee contributes up to 6% of eligible compensation starting in 2022 [71]. Environmental and Supply Chain - The Company sourced 100% of the electricity used by its print manufacturing facilities from renewable energy credits in 2021 [83]. - The Company anticipates continued challenges in sourcing paper in 2022 due to global supply chain issues, which may lead to increased pricing [58]. Customer and Credit Risk Management - The Company has a diverse customer base with no single customer accounting for more than 10% of net sales for the years ended December 31, 2021, 2020, and 2019, mitigating credit risk [316]. - The Company maintains provisions for potential credit losses, which have historically been within expectations, but significant economic disruptions could lead to additional charges [316]. Cybersecurity - The Company maintains a cybersecurity program based on industry-leading frameworks, ensuring compliance with regulatory requirements [62].