Market Concentrations and Risks

12 Months Ended

Dec. 31, 2023

Risks and Uncertainties [Abstract]

Market Concentrations and Risks

Market Concentrations and Risks

Concentrations of Credit

We sell our products to many customers in several markets across multiple geographic areas. The ten largest customers, of which seven are distributors, constitute in aggregate approximately 44%, 45%, and 44% of revenues in 2023, 2022, and 2021, respectively.

Unconditional Commodity Purchase Obligations

At December 31, 2023, we were committed to purchase approximately 2.7 million pounds of copper at an aggregate fixed cost of $10.5 million. At December 31, 2023, this fixed cost was $0.1 million greater than the market cost that would be incurred on a spot purchase of the same amount of copper. The aggregate market cost was based on the current market price of copper obtained from the New York Mercantile Exchange.

Labor

Approximately 27% of our labor force is covered by collective bargaining agreements at various locations around the world, and we expect to renegotiate these agreements during 2024.

Fair Value of Financial Instruments

Our financial instruments consist primarily of cash and cash equivalents, trade receivables, trade payables, and debt instruments. The carrying amounts of cash and cash equivalents, trade receivables, and trade payables at December 31, 2023 are considered representative of their respective fair values. The fair value of our senior subordinated notes at December 31, 2023 and 2022 was approximately $1,141.8 million and $1,046.3 million, respectively, based on quoted prices of the debt instruments in inactive markets (Level 2 valuation). This amount represents the fair values of our senior subordinated notes with a carrying value of $1,215.0 million and $1,174.1 million as of December 31, 2023 and 2022, respectively.