Company: BHE
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025644
Chunk: 50

Company: BENCHMARK ELECTRONICS INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1A
Chunk 50
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 our competitors that have less debt; and

•make it more difficult for us to satisfy our debt obligations.

Any of these risks could materially impact our ability to fund our operations or limit our ability to expand our business, which could have a material adverse effect on our business, financial condition and results of operations.

We are exposed to intangible asset risk; our goodwill may become impaired.

We have recorded intangible assets, including goodwill, in connection with business acquisitions. We are required to assess goodwill and intangible assets for impairment at least on an annual basis and whenever events or circumstances indicate that the carrying value may not be recoverable from estimated future cash flows. A significant and sustained decline in our market capitalization could result in material charges in future periods that could be adverse to our operating results and financial position. As of December 31, 2024, we had $192.1 million in goodwill and $44.4 million of identifiable intangible assets. See Note 1(i) to the consolidated financial statements in Part II, Item 8 of this Report.

We may be exposed to interest rate fluctuations.

We have exposure to interest rate risk on our outstanding borrowings under our variable rate credit agreement. These borrowings’ interest rates are based on the spread, at our option, over the Secured Overnight Financing Rate (SOFR), the bank’s prime rate or the federal funds rate. We are also exposed to interest rate risk on our invested cash balances.

Risks Related to the Ownership of Our Common Shares

We may experience fluctuations in quarterly results.

Our quarterly results may vary significantly depending on various factors, many of which are beyond our control. 

These factors include: 

•the volume of customer orders relative to our capacity; 

•customer introduction and market acceptance of new products; 

•changes in demand for customer products;

•seasonality in demand for customer products;

•pricing and other competitive pressures;

•the timing of our expenditures in anticipation of future orders; 

•our effectiveness in managing manufacturing processes; 

•changes in cost and availability of labor and components, including due to recent labor and supply constraints and inflation;

•changes in our product mix;

•changes in tax laws in the jurisdictions in which we operate;

•changes in tariffs, trade agreements and other trade protection measures;

•fluctuations in currency exchange rates; 

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•changes in political and economic conditions;

•disruptions caused by computer malfunctions or cybersecurity incidents; and 

•local factors and events that may affect our production volume, such as local