A 10-K is a comprehensive annual report that companies in the United States are required to file with the Securities and Exchange Commission (SEC). The filing provides a detailed overview of a company’s financial performance, business operations, and risk factors. Here are key components of a 10-K filing:
1. **Financial Statements:** The 10-K includes audited financial statements, including the income statement, balance sheet, and cash flow statement. These financial statements provide a detailed picture of the company’s financial health.
2. **Management Discussion and Analysis (MD&A):** This section offers insights from the company’s management regarding its financial condition, results of operations, and future prospects. It often discusses key performance indicators, trends, and challenges.
3. **Business Overview:** The 10-K outlines the company’s business operations, including its products or services, markets, competition, and strategic initiatives. This section helps investors understand the company’s core operations and industry positioning.
4. **Risk Factors:** Companies are required to disclose the key risks that could affect their business. This may include market risks, regulatory risks, competition, and other factors that may impact financial performance.
5. **Legal Proceedings:** If a company is involved in significant legal actions, details about these proceedings, including potential liabilities, are disclosed in the 10-K.
6. **Management and Corporate Governance:** Information about the company’s management team, executive compensation, and corporate governance practices are typically provided in this section.
7. **Market for the Company’s Common Equity, Related Stockholder Matters:** This section covers details about the company’s stock, such as stock price performance, dividends, and information about shareholders.
8. **Selected Financial Data:** Historical financial data, including key financial metrics over the past five years, is often included in this section.
9. **Subsidiaries:** Details about the company’s subsidiaries and their financial contributions may be provided.
10. **Exhibits and Financial Statement Schedules:** Various exhibits, including contracts, material agreements, and additional financial information, may be included in the 10-K. Financial statement schedules provide additional details not included in the primary financial statements.
The 10-K is a valuable resource for investors and analysts seeking in-depth information about a company’s financial health, operations, and strategic direction. It is a regulatory requirement for publicly traded companies in the United States and is filed annually within a certain period after the close of the company’s fiscal year.