MSA Safety Annual Report 2022

FY2022 Annual Report · MSA Safety

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THE

COMPANY

ANNUAL REPORT 2022

That men and women may work in safety and that they,
their families and their communities may live in health
throughout the world.

To be the world’s leading provider of safety solutions that
protect workers when life is on the line. We pursue this
vision with an unsurpassed commitment to integrity,
customer service and product innovation that creates
exceptional value for all MSA stakeholders.

Business of MSA Safety
MSA Safety is a global leader in the development,

manufacture and supply of innovative safety products

and software that help protect people and facility

infrastructures throughout the world. MSA’s key

products include self-contained breathing apparatus,

fixed gas and flame detection systems, portable gas

detection instruments, industrial head protection

products, firefighter helmets and protective apparel,

and fall protection devices.

MSA’s safety technologies are used globally in a broad

range of markets, including the fire service, the oil, gas

and petrochemical industry, construction, industrial

manufacturing applications, heating, ventilation,

air conditioning and refrigeration, utilities, mining

and the military.

MSA Safety was founded in 1914 by John T. Ryan and

George H. Deike, two mine rescue engineers who had

firsthand knowledge of the terrible human loss that

was occurring in underground coal mines at that time.

Their knowledge of the mining industry provided the

foundation for the development of safety equipment

to better protect miners. While the range of markets

served by MSA has evolved greatly over the years,

the founding philosophy of understanding customer

safety needs and designing innovative safety solutions

that address those needs remains unchanged.

MSA is headquartered in Cranberry Township,

Pennsylvania, with operations employing

About the Cover
For more than a century, the letters

M-S-A have been synonymous with one

word: Safety. Though our business has

evolved, our mission — “That men and

women may work in safety…” — has

not. It’s a socially responsible mission

that’s 108 years strong. It’s purpose at

work, and why our people come to work

each day. Today, we don’t just produce

products — we invent, we innovate,

and we create next generation safety

technologies that help to keep workers

safe around the world. Because safety is

all we do, this singular focus differentiates

approximately 5,000 associates throughout the world.

MSA Safety from other enterprises.

A publicly held company, MSA’s stock is traded on the

Accordingly, it serves as our 2022 Annual

New York Stock Exchange under the symbol MSA.

Report theme.

BY SEGMENT

32%

$1.5B

68%

Americas

International

BY PRODUCT CATEGORY

27%

38%

$1.5B

35%

Firefighter Safety

Gas Detection

Industrial PPE

2022 FINANCIAL HIGHLIGHTS

The team delivered outstanding results for the year, including record sales and robust margin
expansion, through excellent operational and commercial execution. Incremental operating
margin was on the high end of our target for the year, and we generated strong cash flow."

– Lee McChesney, Senior Vice President and Chief Financial Officer

KEY FINANCIAL METRICS

Net Sales

Adj. Operating Income

Adj. EPS

+12% yoy constant
currency growth

19.0% margin
+180 bps yoy

+21% yoy growth

2022 YOY SALES GROWTH BY PRODUCT CATEGORY*

Firefighter
Safety

Gas
Detection

Industrial Personal
Protective Equipment

+13%

+17%

+5%

Sales Vitality

New Product Spotlight

PRODUCT INNOVATION

of sales from products
developed and launched in
the past 5 years

R&D Investment

ALTAIR io4™ Gas Detection Wearable
Part of MSA's Connected Work Platform, the ALTAIR io4 Gas Detector
delivers real-time data analytics to help enhance safety and
productivity across workers, worksites and workflows.

V-Gard® C1™ Hard Hat
Using ReflectIR™ technology, the V-Gard C1 can
reduce temperatures inside the hard hat by
as much as 20°F, or 11°C.

Proprietary
XCell™ Sensors

of Net Sales

Integration with MSA GRID Platform

ReflectIR™
Thermal Barrier

BALANCED CAPITAL ALLOCATION

Returned more than $100M to
shareholders through dividends and
share repurchases

Dividends

Share Repurchases

50+
consecutive
years of
increasing
dividends

$1.71

$1.75

$1.82

$1.64

$1.49

2018

2019

2020
Dividends Per Share

2021

2022

*Firefighter Safety includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. Gas Detection includes Fixed Gas and Flame Detection and Portable Gas Detection. Industrial PPE includes Industrial Head Protection, Fall Protection and Non-Core Sales.

This page includes certain non-GAAP financial measures. These financial measures include constant currency revenue growth, adjusted operating margin and adjusted earnings per diluted share.
For an explanation of these measures, together with a reconciliation to the most directly comparable GAAP measures, please visit http://investors.MSAsafety.com and click on Quarterly Results (Q4 2022) under the Financial Information header.

THE SAFETY COMPANY | MSA 2022 Annual Report

MSA Safety celebrated its 108th year in business in 2022.
As I reflect on this milestone, I’m incredibly proud of the

impact we have on the millions of people around the

world who put their trust in the MSA brand every day.

This includes people like Lieutenant Steven Torres of the

New Bedford, Massachusetts, Fire Department.

Last fall, Lt. Torres and his team responded to a third-floor

apartment fire where an elderly woman and her grandson

were awakened by rapidly advancing flames. The grandson

was able to evacuate, but his grandmother, in a wheelchair,

was trapped.

With the fire spreading quickly, Lt. Torres — donned

head-to-toe in MSA® and Globe™ protective equipment —

used his body to shield the woman from the flames and

intense heat as he and other members of his crew led

her to safety. Due to the heat, his self-contained breathing

apparatus (SCBA) sustained significant damage but, like

the firefighters themselves, it kept on working.

I was pleased to host Lt. Torres and his colleagues at our

Pittsburgh headquarters where they were able to meet

the people behind our market-leading G1™ SCBA.

Our associates shined brightly as they interacted with

Lt. Torres and his team.

Shown above, with his damaged G1 SCBA, is Lt. Torres of the New Bedford, Mass.
Fire Department. Commenting on his heroic rescue of an elderly woman, he said,
“I still had to go back into the structure and my [breathing apparatus] worked fine.
It had no malfunctions. I didn’t even know it was damaged until I got out of the
building. Everything was working great. It did its job.”

Nish Vartanian
Chairman, President and
Chief Executive Officer

It is a privilege to protect those who protect us. And that

passion to protect contributed to one of the most

rewarding years in MSA Safety’s history, a year with

record results.

I’ve written before that the importance of worker safety has

never been more apparent, and that certainly rang true in

2022. The team delivered outstanding results, including

record sales and margin expansion, all while operating

safely by achieving 12 consecutive months without a lost

time incident throughout our production facilities.

Despite ongoing supply chain and labor challenges, we

realized broad-based growth across each of our primary

markets, including Firefighter Safety, Gas Detection and

Industrial Personal Protective Equipment (PPE). Ultimately,

we achieved $290 million of adjusted operating income

with adjusted diluted earnings per share of $5.65 — both

representing a 21 percent increase over the prior year.

We’re using those results to invest in safer tomorrows.

Another example is our suite of detection products which

For the year, we invested more than $100 million into our

help protect the environment by detecting refrigerant

business through R&D and capital expenditures to fuel

leaks. Introduced in 2022, the MSA Bacharach MGS-401

future growth, and I’m pleased that we returned more than

Entrance Monitor is a system designed specifically for safety

$100 million to you, our shareholders, through consistent

compliance in refrigeration applications, such as industrial

dividends and share repurchases.

cold storage and chiller rooms. By quickly detecting

I’m proud of these results, which are a reflection of our

reach protecting the world’s workers.

refrigerant leaks, this monitor greatly reduces greenhouse

gas emissions in our customers’ facilities.

Those of you who know MSA Safety

know that we’re committed to our

mission. We live “purpose at work”

each and every day. That passion to

protect — for workers, facilities or the

planet — is at the core of everything

we do. It’s one of the many reasons

why I am excited about our future.

As THE Safety Company, we’re

innovators at the forefront of

a technology transformation.

We don’t just produce products —

we invent, we innovate, and we create next generation

safety technologies. That means taking our industry-

But not every innovation requires

electronics. With heat stress becoming

an increasingly important safety issue,

we introduced the V-Gard® C1™ Hard Hat,

which uses patent-pending ReflectIR™

Thermal Barrier technology. When

worn in hot, sunny environments, this

technology can reduce temperatures

inside the hard hat by as much as

20 degrees Fahrenheit, or 11 degrees

Celsius, compared to those without.

Finally, we’re also proud of our V-Gard®

Green Hard Hat, an environmentally

friendly version of our iconic V-Gard
hard hat which celebrated a remarkable 60th anniversary
in 2022. The V-Gard Green is made from recyclable high-

leading products and enhancing many of them with

density polyethylene sourced from sugarcane.

technology and AI-powered systems. These are products

that connect and detect for safety and for sustainability,

helping to make work safer, easier and more productive.

On sustainability, we continue to protect workers in

A good example of this connection

and detection technology is our

industry-leading ALTAIR io4™

Gas Detector – a cloud-connected

device integrating a powerful

combination of hardware and

software to help drive safety

traditional oil, gas and petrochemical segments, supporting

global energy security needs. At the same time, we’re

identifying exciting new growth opportunities in green

energy applications, like hydrogen. As construction for

these projects come online, we’re mapping our new and
existing products so that we can continue to match the safety

needs of diversified, well-balanced energy end markets.

compliance. Offering enhanced

Looking inward, we’re improving the sustainability of our

data analytics, the io4 detector

own operations. For the first time, I’m pleased to announce

automates previously manual

tasks, eliminates paperwork

that we’ve set a 1.5 degree Celsius carbon reduction target,

reducing our scope one and two emissions by 42 percent

and allows for more proactive

by 2030, as compared to a 2021 baseline.

ALTAIR io4™ Gas Detector

safety management.

THE SAFETY COMPANY | MSA 2022 Annual Report

To drive this target, we continue to build internal

highly specialized product and technology support in

infrastructure to identify tactics and frame interim

their local language.

milestones, as well to catalogue our scope three emissions.

Through this process we are investing in MSA and the

environment by incorporating sustainability principles into

our day-to-day operations. This includes identifying energy

efficiency projects, securing renewable energy, reimagining

our product packaging, implementing waste reduction

programs, and engaging with our supply chain teams to

identify low-impact transportation options.

For us, it’s simple. Good people are good for business, and

On workforce, one of the top business imperatives for any

organization today is attracting and retaining quality talent.

As a manufacturing company, we must sustain labor

participation rates that are as robust as the demand for our

products. As a technology innovator, we must draw on the

broadest pools of talent possible. That’s because we know

that our people are as unique and innovative as the products

we create. Those very differences can make all the difference

as we design safety solutions fit for the diverse needs of

workers in hundreds of countries, industries and applications.

good business is good for people. And when it comes to

creating value for all of our stakeholders, we know that

We continue to offer generous tuition reimbursement and
numerous upskilling programs for our current workforce.

innovation and growth do not happen without great talent.

In another program in the United States, we provide

Around the world, we’re modernizing our workplace and

transportation, training, and translation services for refugees,

our workforce.

new-to-country workers and other first-generation Americans

On workplace, this year we expanded our Global Business

as they learn new skills.

Service Center in Warsaw, Poland, centralizing a wide range

We’ve also placed a keen focus on psychological safety.

of administrative functions and customer service support.

As THE Safety Company this should come as no

Our Warsaw business services hub complements similar

surprise. Safety, inclusion and full participation at work

hubs around the world. We believe that these operations,

has to encompass our associates’ physical, mental and

previously spread across numerous geographies, are better

psychological well-being. These are just a few examples

when connected. And for our customers, they now get

of how we’re thinking differently about inclusive talent.

Shown above are MSA associates gathered at the company's new Global Business Services Center in Warsaw, Poland. The newly designed facility serves as a hub that centralizes a wide
range of business functions that support MSA’s business goals in the EMEA region.

Together, these efforts are making

a difference. In 2022, our company

was again recognized by Newsweek

as one of America’s Most Responsible

Companies; by Forbes as one

of America’s Best Employers for

Diversity; and regionally, by the

Pittsburgh Post-Gazette as a Top

Workplace in the large company

category. This marks the ninth time

MSA Safety has received the Post-Gazette recognition,

and this time, we were given a special nod from our

associates recognizing the “meaningfulness” of our work.

Our focus is on one singular mission: Safety. While our

business has changed, our mission — “That men and

women may work in safety…” — has not. It’s a socially

responsible mission that’s 108 years strong. It’s “purpose

at work,” and why our people come to work each day.

We enter 2023 from a position of strength and momentum.

Our business is healthy, demand is strong, and we continue

to see growth opportunities across each of our end markets.

I’m also pleased that on January 5, we announced the

divestiture of a wholly-owned subsidiary that held legacy

exposures. This strategic move reduces our risk profile

and improves cash flow predictability, while simplifying

our balance sheet. Most importantly, it allows us to focus

on what we do best — the future of worker safety.

In closing, I want to thank the 5,000 MSA Safety associates

around the world who share one mission, one passion and

one purpose. And to each of you, the shareholders of MSA,

I sincerely thank you. When you invest in us, you invest in

the safety of workers and communities around the world.

Finally, to our customers… you are the reason we come to

work every day, and we are grateful for your continued

trust and confidence. We will never take that for granted.

Thank you all, and please stay safe!

Nish Vartanian
Chairman, President and Chief Executive Officer

In 2022, MSA’s V-Gard® Hard Hat celebrated 60 years of protecting
workers around the world.

Since its launch, the V-Gard has become an iconic product in the
industrial workplace. It has a proven design recognized for its
unique stye, comfort, performance and innovation.

Just some of the improvements made to this iconic product over
the years include:

• Customization options for colors, logos, reflective stripes
and personalization
• Fas-Trac® III Ratchet Suspension
• V-Gard® 500 Vented Hard Hat
• V-Gard® GREEN Hard Hat from 95% renewable resources
• V-Gard® Universal Visor Frame and Accessory System
• V-Gard® Cap-Mounted Hearing Protection
• V-Gard® H1 Safety Helmet
• V-Gard® C1™ Cooling Hard Hat with ReflectIR™ Thermal Barrier

Thanks to its staying power, the V-Gard protective helmet has become
the world’s most recognized hard hat.

Business of MSA

Management’s Discussion and Analysis

Financial Statements and Supplementary Data

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Changes in Retained

Earnings, Accumulated Other Comprehensive Loss

and Noncontrolling Interests

Notes to Consolidated Financial Statements

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File No. 1-15579

MSA SAFETY INCORPORATED
(Exact name of registrant as specified in its charter)

Pennsylvania
(State or other jurisdiction of incorporation or organization)
1000 Cranberry Woods Drive
Cranberry Township, Pennsylvania
(Address of principal executive offices)

46-4914539
(IRS Employer Identification No.)

16066-5207
(Zip Code)

Registrant’s telephone number, including area code: (724) 776-8600

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, no par value

(Title of each class)

MSA

New York Stock Exchange

(Trading symbol(s))

(Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to
submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company,
or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging
growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer x Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting
firm that prepared or issued its audit report. Yes x
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included
in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No x
The aggregate market value of voting stock held by non-affiliates as of June 30, 2022 was approximately $4.4 billion. As of February 10, 2023,
there were outstanding 39,213,240 shares of common stock, no par value.

Portions of the Proxy Statement for the May 12, 2023 Annual Meeting of Shareholders are incorporated by reference into Part III.

DOCUMENTS INCORPORATED BY REFERENCE

6983_FIN.pdf 1

Item No.
Part I
1.

1A.

1B.

Part II

7A.

9A.

9B.

9C.
Part III
10.

11.

12.

13.

14.
Part IV
15.

Table of Contents

Page

Business

Risk Factors

Unresolved Staff Comments

Properties

Legal Proceedings

Mine Safety Disclosures

Executive Officers of the Registrant

Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities

[Reserved]

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Quantitative and Qualitative Disclosures About Market Risk

Financial Statements and Supplementary Data

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Controls and Procedures

Other Information
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Directors, Executive Officers and Corporate Governance

Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters

Certain Relationships and Related Transactions, and Director Independence

Principal Accountant Fees and Services

Exhibits and Financial Statement Schedules

16.

Form 10-K Summary

Signatures

81
81

6983_FIN.pdf 2

Cautionary Statement Regarding Forward-Looking Statements

This report may contain (and verbal statements made by MSA® Safety Incorporated (MSA) may contain) "forward-
looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to
future events or future financial performance and involve various assumptions, known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from
any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
These risks and other factors include, but are not limited to, those listed in this report under “Risk Factors,” “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this report. In some cases, you
can identify forward-looking statements by words such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “potential” or other comparable words. Actual results, performance or outcomes may differ
materially from those expressed or implied by these forward-looking statements and may not align with historical performance
and events due to a number of factors, including those discussed in the sections of this report described above. Although we
believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results,
levels of activity, performance or achievements, and caution should be exercised against placing undue reliance upon such
statements. We are under no duty to update publicly any of the forward-looking statements after the date of this report, whether
as a result of new information, future events or otherwise, except as required by law.

6983_FIN.pdf 3

Item 1. Business

PART I

Overview—Established in 1914, MSA Safety Incorporated is the global leader in the development, manufacture and
supply of safety products and software that protect people and facility infrastructures. Recognized for their market leading
innovation, many MSA products integrate a combination of electronics, software, mechanical systems and advanced materials
to protect users against hazardous or life-threatening situations. The Company's comprehensive product line, which are
governed by rigorous safety standards across highly regulated industries, is used by workers around the world in a broad range
of markets, including fire service, the oil, gas and petrochemical industry, construction, industrial manufacturing applications,
heating, ventilation, air conditioning and refrigeration ("HVAC-R"), utilities, mining and the military. The Company's core
products include breathing apparatus where self-contained breathing apparatus ("SCBA") is the principal product, fixed gas and
flame detection systems, portable gas detection instruments, industrial head protection products, firefighter helmets and
protective apparel and fall protection devices.

The Company’s leading market positions across nearly all of its core products are supported and enabled by a strong
commitment to investing in new product development that continually raises the bar for safety equipment performance, all
while upholding an unwavering commitment to integrity. We dedicate significant resources to research and development,
which allows us to produce innovative safety products that are often first to market. Our global product development teams
include cross-functional associates throughout the Company, including research and development, marketing, sales, operations
and quality management. Our engineers and technical associates work closely with the safety industry’s leading standards-
setting groups and trade associations to develop industry specific product standards and to anticipate their impact on our
product line.

Segments—We tailor our product offerings and distribution strategy to satisfy distinct customer preferences that vary
across geographic regions. To best serve these customer preferences, we have organized our business into four geographic
operating segments that are aggregated into three reportable geographic segments: Americas, International and Corporate.
Segment information is presented in Note 8—Segment Information of the consolidated financial statements in Part II Item 8 of
this Form 10-K.

Because our consolidated financial statements are stated in U.S. dollars and much of our business is conducted outside
the U.S., currency fluctuations may affect our results of operations and financial position and may affect the comparability of
our results between financial periods.

Products—We design, manufacture, and sell a comprehensive line of safety products and solutions to protect the health
and safety of workers and facility infrastructures around the world in the fire service, the oil, gas and petrochemical industry,
construction, industrial manufacturing applications, HVAC-R, utilities, mining and the military. Our products protect people
against a wide variety of hazardous or life-threatening situations.

The following is a brief description of each of our product categories:

Core products. MSA's corporate strategy includes a focus on driving sales of core products, where we have leading
market positions and a distinct competitive advantage. Core products, as mentioned above, include breathing apparatus where
SCBA is the principal product, fixed gas and flame detection systems, portable gas detection instruments, industrial head
protection products, firefighter helmets and protective apparel and fall protection devices. Core products comprised
approximately 90% and 89% of sales in 2022 and 2021, respectively.

The following is a brief description of our core product offerings:

Breathing apparatus products. The primary breathing apparatus product is the SCBA. SCBA are used by first responders,

petrochemical plant workers and anyone entering an environment deemed immediately dangerous to life and health. The
SCBA functions together with various MSA cloud-based software modules and proprietary accessories to create a complete and
customizable solution for our customers. Our primary breathing apparatus product in the Americas segment, the MSA G1
SCBA, is a revolutionary platform that offers many differentiated features. With new hardware and software upgrades always
under development, this platform continues to evolve to meet our customers’ needs. Our newest breathing apparatus product,
the MSA M1 SCBA, represents the most advanced and ergonomic SCBA we have ever launched for our International markets.
The “M” stands for modular, which is a critical design element that allows this platform to meet the many varied needs of
customers around the world. We sell breathing apparatus across both the Americas and International segments.

6983_FIN.pdf 4

Fixed gas and flame detection instruments ("FGFD"). Our permanently installed fixed gas and flame detection

instruments are used in oil, gas and petrochemical applications, wastewater, heating, ventilation and air conditioning ("HVAC")
and general industrial production facilities to detect the presence or absence of various gases in the air. Typical applications of
these instruments include the detection of an oxygen deficiency in confined spaces or the presence of combustible or toxic
gases. The FGFD product line generates a meaningful portion of overall revenue from recurring business including
replacement components and related service. We sell these instruments in both our Americas and International segments. Key
products include:

•

Permanently installed gas detection monitoring systems. This product line is used to monitor for combustible and
toxic gases and oxygen deficiency in virtually any application where continuous monitoring is required. Our systems
are used for gas detection in the oil and gas industry, petrochemical, pulp and paper, wastewater, refrigerant
monitoring, pharmaceutical production and general industrial applications. Our Ultima®X5000 and S5000 gas
monitors enhance facility and worker safety while lowering overall cost of ownership for our customers through
differentiated sensor technology. These systems utilize a wide array of sensor technologies including electrochemical,
catalytic, infrared and ultrasonic.

Flame detectors and open-path infrared gas detectors. These instruments are used for plant-wide monitoring of toxic
gases and for detecting the presence of flames. These systems use infrared optics to detect potentially hazardous
conditions across long distances, making them suitable for use in such applications as offshore oil rigs, storage vessels,
refineries, pipelines and ventilation ducts.

In 2021 MSA acquired Bacharach, Inc. and its affiliated companies (Bacharach), a leader in gas detection technologies

used in the HVAC-R markets. Bacharach’s advanced instrumentation technologies help protect lives and the environment,
while also increasing operational efficiency for its diversified customer base. Bacharach's portfolio of gas detection and analysis
products are used to detect, measure and analyze leaks of various gases that are commonly found in both commercial and
industrial settings. Bacharach has strong expertise in the refrigerant leak detection market with customers in the HVAC-R, food
retail, automotive, commercial and industrial refrigeration, and military markets.

Portable gas detection instruments. Our hand-held portable gas detection instruments are used to detect the presence or
absence of various gases in the air. The product line is used by oil, gas and petrochemical workers, general industrial workers,
miners, utility workers, first responders or anyone working in a confined space environment. Typical applications of these
instruments include the detection of an oxygen deficiency in confined spaces or the presence of combustible or toxic gases.
Our single- and multi-gas detectors provide portable solutions for detecting the presence of oxygen, combustible gases and
various toxic gases, including hydrogen sulfide, carbon monoxide, ammonia and chlorine, either singularly or up to six gases at
once. Our ALTAIR® 2X, ALTAIR 4XR and ALTAIR 5X Multigas Detectors, with our internally developed XCell® sensor
technology, provide faster response times and unsurpassed durability. During 2022, we launched the ALTAIR® io™ 4 gas
detection wearable, designed with fully integrated connectivity for real-time visibility across worksites. We sell portable gas
detection instruments in both our Americas and International segments.

MSA also leverages proprietary Internet of Things solutions and wireless solutions to connect our hardware products
directly to our cloud offering ("MSA Grid"). MSA Grid offers solutions for both fleet management and live monitoring while
interfacing directly with the breadth of MSA hardware products. Through this cloud technology, MSA provides services that
enhance worker safety and accountability by adding this layer of transparency that does not normally exist in industrial settings.

Industrial head protection. We offer a complete line of industrial head protection and accessories that includes the iconic

V-Gard® helmet brand, a bellwether product in MSA's portfolio for over 50 years. We offer customers a wide range of color
choices and we are a world leader in the application of customized logos. Our industrial head protection products have a wide
user base, including oil, gas and petrochemical workers, steel and construction workers, miners and industrial workers. Our
Fas-Trac® III Suspension system was designed to provide enhanced comfort without sacrificing safety. Our strongest sales of
head protection products have historically been in the Americas segment.

Firefighter helmets and protective apparel. We offer a complete line of fire helmets that includes our Cairns® and
Gallet® helmet brands. Our Cairns helmets are primarily used by firefighters in North America while the Gallet helmets are
primarily used by firefighters across our International segment. Globe® Holding Company, LLC ("Globe") and B T Q Limited
("Bristol Uniforms"), are both leading innovators and providers of firefighter personal protective equipment ("PPE") and boots.
MSA's firefighter safety PPE offering in the Americas segment protects firefighters from head to toe, with Cairns Helmets, our
industry leading G1 SCBA, and Globe turnout gear and boots. MSA's firefighter safety PPE offering in the International
segment includes the XF1 Gallet Helmet and Bristol Uniforms turnout gear, in addition to the M1 SCBA described above.

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Fall protection. Our broad line of fall protection equipment includes harnesses, lanyards, self-retracting lifelines,
engineered systems and confined space equipment. Fall protection equipment is used by workers in the construction industry,
oil, gas and petrochemical market, utilities industry, aerospace industry, general industrial applications and anyone working at
height. MSA’s new V-Series fall protection equipment has transformed the Company’s harness and self-retracting lanyard
portfolio, with approximately 50 new fall protection products launched over the past several years. The V-Series brand of fall
protection equipment is inspired by MSA's iconic V-Gard hard hat, which is used by millions of workers around the world.
Additionally, we recently launched a patent-pending Personal Fall Limiter with a smart hook connector that uses radio -
frequency identification ("RFID") technology to alert wearers when they are not secured to an anchorage point.

MSA+™. Our new safety solutions platform that integrates safety hardware technology, cloud software solutions and
safety services was launched in 2022. By integrating our offerings and coupling them with subscription pricing, MSA improved
access to our solutions and facilitates the digital transformation of safety programs while further accelerating our recurring
revenue business.

Non-core products. MSA maintains a portfolio of non-core products. Non-core products reinforce and extend the core

offerings, drawing upon our customer relationships, distribution channels, geographical presence and technical experience.
These products are complementary to the core offerings and sometimes reflect more episodic or contract-driven growth
patterns. Key non-core products include air-purifying respirators ("APR"), eye and face protection, ballistic helmets and gas
masks. Ballistic helmet and gas mask sales are the primary sales to our military customers and were approximately $55 million
globally in 2022 compared to $43 million in 2021.

We have patents and pending patents across substantially all of our products.

Customers—Our customers generally fall into two categories: distributors and end-users. In our Americas segment, the

majority of our sales are made through distribution. In our International segment, sales are made through both indirect and
direct sales channels. For the year ended December 31, 2022, no individual customer represented more than 10% of our sales.

Sales and Distribution—Our sales and distribution team consists of marketing, field sales and customer service
organizations. In most geographic areas, our field sales organizations work jointly with select distributors to call on end-users
and educate them about hazards, exposure limits, safety requirements and product applications, as well as the specific
performance attributes of our products. We believe that understanding end-user requirements is critical to increasing MSA's
market share.

The in-depth customer training and education provided by our sales associates to our customers is critical to ensuring

proper use of many of our products, such as SCBA and gas detection instruments. As a result of our sales associates working
closely with end-users, they gain valuable insight into customer preferences and needs. To better serve our customers and to
ensure that our sales associates are among the most knowledgeable and professional in the industry, we place significant
emphasis on training our sales associates in product application, industry standards and regulations.

We believe our sales and distribution strategy allows us to deliver a customer value proposition that differentiates our

products and services from those of our competitors, resulting in increased customer loyalty and demand.

In areas where we use indirect selling, we promote, distribute and service our products to general industry through
authorized national, regional and local distributors. We distribute fire service products primarily through specially trained local
and regional distributors who provide advanced training and service capabilities to volunteer and paid municipal fire
departments. Because of our broad and diverse product line and our desire to reach as many markets and market segments as
possible, we have over 2,200 authorized distributor locations worldwide.

MSA maintains a diversified portfolio of safety products that protect workers and facility infrastructure across a broad

array of end markets. While the Company sells its products through distribution, which can limit end-user visibility, the
Company provides estimated ranges of end market exposure to facilitate understanding of its growth drivers. The Company
estimates that approximately 35%-40% of its overall revenue is derived from the fire service market and approximately
25%-30% of its revenue is derived from the energy market. The remaining revenue is split among construction, utilities, general
industrial applications, military and mining.

Competition—The global safety products market is broad and highly fragmented with few participants offering a
comprehensive line of safety products. The sophisticated safety products market in which we compete is comprised of both
core and non-core offerings and is a subset of the larger safety market. We maintain leading positions in nearly all of our core
products. Over the long-term, we believe global demand for safety products will continue to grow. Purchases of these products
are non-discretionary, protecting workers' health in hazardous and life-threatening work environments. Their use is often
mandated by government and industry regulations, which are increasingly enforced on a global basis.

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The safety products market is highly competitive, with participants ranging in size from small companies focusing on a
single type of PPE to several large multinational corporations that manufacture and supply many types of sophisticated safety
products. Our main competitors vary by region and product. We believe that participants in this industry compete primarily on
the basis of product characteristics (such as functional performance, technology, cost of ownership, comfort, design and style),
brand name recognition and after-market service support.

We believe we compete favorably within each of our operating segments as a result of our high quality, innovative

offerings and strong brand trust and recognition.

Research and Development—To achieve and maintain our market leading positions, we operate several sophisticated

research and development facilities. We believe our dedication and commitment to innovation and research and development
allows us to produce state-of-the-art safety products that are often first to market and exceed industry standards. Our primary
engineering groups are located in the United States, Germany and China. Our global product development teams include cross-
geographic and cross-functional members from various areas throughout the Company, including research and development,
marketing, sales, operations and quality management. These teams are responsible for setting product line strategies based on
their understanding of customers' needs and available technology, as well as the opportunities and challenges they foresee in
each product area. We believe our team-based, cross-geographical and cross-functional approach to new product development
is a source of competitive advantage. Our approach to the new product development process allows us to tailor our product
offerings and product line strategies to satisfy distinct customer preferences and industry regulations that vary across our
operating segments.

We believe another important aspect of our approach to new product development is that our engineers and technical
associates work closely with the safety industry’s leading standards-setting groups and trade associations. These organizations
include the National Institute for Occupational Safety and Health ("NIOSH"), the National Fire Protection Association
("NFPA"), American National Standards Institute ("ANSI"), International Safety Equipment Association ("ISEA") and their
overseas counterparts. Key members of our management team understand the impact that these standard-setting organizations
have on our new product development pipeline. As such, management devotes significant time and attention to anticipating a
new standard's impact on our sales and operating results. Because of our understanding of customer needs, membership on
global standards-setting bodies, investment in research and development and our unique new product development process, we
believe we are well positioned to anticipate and adapt to changing product standards. While the length of the approval process
can be unpredictable, we believe that we are well positioned to gain the approvals and certifications necessary to meet new
government and multinational product regulations.

Patents and Intellectual Property—We own significant intellectual property, including a number of domestic and foreign

patents, patent applications and trademarks related to our products, processes and business. Although our intellectual property
plays an important role in maintaining our competitive position in a number of markets that we serve, no single patent, or patent
application, trademark or license is, in our opinion, of such value to us that our business would be materially affected by the
expiration or termination thereof, other than the “MSA” trademark. Our patents expire at various times in the future not
exceeding 20 years. Our general policy is to apply for patents on an ongoing basis in the United States and other countries, as
appropriate, to perfect our patent development. In addition to our patents, we have also developed or acquired a substantial
body of manufacturing know-how that we believe provides a significant competitive advantage over our competitors.

Raw Materials and Suppliers—Many of the components of our products are formulated, machined, tooled or molded in-
house and by select tier one supplier partners, which comprise approximately two-thirds of our cost of sales. For example, we
rely on integrated manufacturing capabilities for breathing apparatus, gas masks, ballistic helmets, hard hats and circuit boards.
The primary materials that we source from third parties include electronic components, high density polyethylene, chemical
filter media, rubber and plastic components, eye and face protective lenses, air cylinders, certain metals and ballistic resistant,
flame resistant and non-ballistic fabrics. We purchase these materials both domestically and internationally, and we believe our
supply sources are both well established and reliable. In spite of some market-softening, especially in the consumer space, the
demand for industrial-based electronic components continues to outpace supply. For these industrial-based electronic
components, lead times remain extended and the overall market constrained, which is not unique to MSA. We continue to
navigate these supply chain issues. We have close supplier relationship programs with our key raw material distributors and
strategic supplier partners. Although we generally do not have long-term supply contracts with all suppliers, thus far we have
not experienced any significant problems in obtaining adequate raw materials by prioritizing formal supply agreements with our
select strategic supplier partners.

Please refer to MSA's Form SD filed on May 25, 2022 for further information on our conflict minerals analysis. Form SD

may be obtained free of charge at www.sec.gov.

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Human Capital—As of December 31, 2022, the Company employed approximately 5,000 people worldwide, of which

approximately 2,200 were employed in the United States and 2,800 were employed outside of the United States.
Approximately 20% of our global workforce is covered by collective bargaining agreements or works councils. Overall, we
consider our employee relations to be good. Our culture is important to our success. To that end, we maintain seven core values
that define our culture. They are Integrity, Customer Focus, Diversity and Inclusion, Innovation and Change, Engagement,
Teamwork and Speed and Agility. Our core values are encircled by “A Culture of Safety.”

Workplace Health & Safety—As a company whose mission is dedicated to worker safety, MSA places great
emphasis on the health and safety of our own associates. The Company maintains a global Environmental, Health and
Safety Management System, deploys a variety of programs to reduce and eliminate injuries and promote safety and
regularly measures the progress of those programs. These programs promote personal responsibility for workplace
safety and encourage associates to set a meaningful example as safety ambassadors.

Employee Health and Well-Being—To support mental health and emotional well-being, all associates and their
dependents worldwide have access to an Employee Assistance Program, at no cost to them. This includes access to
visits with mental health care providers through the program.

Diversity and Inclusion—Diversity and Inclusion is a Core Value at MSA, and the Company seeks a wide variety

of people, thoughts, perspectives, and ideas.

MSA strives to provide a diverse and inclusive work environment, paired with a culture of excellence in which
associates feel comfortable openly sharing thoughts and ideas. Creating an inclusive environment helps to recruit and
retain talent, promoting engagement, fostering innovation, and achieving MSA’s business objectives.

The Company maintains several Employee Resource Business Groups designed to foster a culture that is both
engaged and inclusive. These groups are voluntary, associate-driven communities that capitalize on the wide variety
of people and perspectives at MSA, driving our core value of Diversity and Inclusion. The Company also maintains
an Executive Diversity Council and several regional councils focused on increasing organizational awareness,
accountability and impact of Diversity and Inclusion initiatives.

MSA also partners with a number of non-profit and community-based organizations to help to build a pipeline of

future talent with differing backgrounds, thoughts, experiences, and perspectives.

Approximately 52% of our U.S. workforce self-identifies as diverse. This includes women who comprise

approximately 41% of our U.S. workforce. Among associates within executive pay grades, 41% self-identify as
diverse. We determine race and gender diversity based on our employees’ self-identification or other information
compiled to meet the requirements of the U.S. government, compiled as of December 31, 2022. We count a diverse
woman as one individual.

Leadership and Development—MSA provides programs to enable continuous learning, growth and development

opportunities.

First, our "MOVE" (Meaningful, Ongoing, Vital Exchanges) Performance Management philosophy is a core
element of associate engagement. Exchanges between associates and supervisors provide a flexible, ongoing feedback
loop to drive and enhance the engagement of associates, while facilitating the achievement of our strategic goals.

Second, the MSA Leader model sets the expectations of MSA people leaders. Grounded in core principles that

define MSA’s high performance culture of excellence, the MSA Leader model guides the development of current and
aspiring leaders. It outlines the traits, knowledge, competencies, and experiences that MSA requires for successful
leadership while encouraging leaders to remain true to their personal styles. The model is the foundation of leadership
development at MSA. By combining leadership development, culture, and business acumen, leaders are better
prepared to drive a high-performance culture while maintaining an engaged workforce with opportunities for
development and growth.

Beyond these core programs, MSA designs and delivers a variety of associate leadership and development

programs to further enhance the associate experience and opportunities for growth. Associates are empowered to own
their career development through business-aligned resources, tools and programs.

Compensation and Rewards—MSA’s Global Compensation Philosophy strives to provide total compensation for
all associates at the market median, utilizing base salary, cash incentives and, in some cases, equity grants to achieve
this goal. We further strive to provide above-market compensation opportunities for associates who exceed goals and
expectations. This approach to Total Rewards is designed to help MSA attract, retain and motivate high-performing
individuals who foster an innovative culture and drive business results.

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Environmental Matters—Our facilities and operations are subject to laws and regulations relating to environmental
protection and human health and safety. In the opinion of management, compliance with current environmental protection laws
will not have a material adverse effect on our financial condition. See Item 1A—Risk Factors, for further information
regarding our environmental risks which could impact the Company.

Seasonality—Our operating results are not significantly affected by seasonal factors. Sales are generally higher during
the second and fourth quarters. During periods of economic expansion or contraction and following significant catastrophes,
our sales by quarter have varied from this seasonal pattern. Government-related sales tend to increase in the fourth quarter.
Americas segment sales tend to be strong during the oil and gas market turnaround seasons late in the first quarter, early in the
second quarter and then again at the end of the third quarter and beginning of the fourth quarter. International segment sales are
typically weaker for the Europe region in the summer holiday months of July and August and seasonality can be affected by the
timing of delivery of larger orders. Invoicing and the delivery of larger orders can affect sales patterns variably across all
reportable segments.

Available Information—Our Internet address is www.MSAsafety.com. We make the following filings available free of

charge on the Investor Relations page on our website as soon as they have been electronically filed with or furnished to the
Securities and Exchange Commission ("SEC"): our annual reports on Form 10-K, our quarterly reports on Form 10-Q, our
current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as well as our proxy statement. Information contained on our website is not part of this
annual report on Form 10-K or our other filings with the SEC. The SEC maintains an Internet site at www.sec.gov that
contains reports, proxy and information statements and other information regarding issuers like us who file electronically with
the SEC.

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Item 1A. Risk Factors

RISKS RELATED TO LEGAL AND REGULATORY CHALLENGES

Claims of injuries or potential safety issues or quality concerns could be made against our various subsidiaries.

Our products and solutions are often used in high-risk and unpredictable environments and our mission, reputation and business
success rely on our ability to design and provide safe, high quality and reliable products that earn and maintain customer trust.
In the event the parties using our products are injured, or if any of our products are alleged to have contributed, we could be
subject to claims or suffer reputational harm. In addition, we may be required to or may voluntarily recall or redesign certain
products or components due to concern about product safety, quality, ease of use or customer confidence. Any significant
claims, recalls or field actions that result in significant expense or negative publicity against us could have a material adverse
effect on our business, operating results, financial condition and liquidity, including any successful claim brought against us in
excess or outside of available insurance coverage.

Our subsidiaries, may experience losses from product liability claims, which could have a material adverse effect on our
business, operating results, financial condition and liquidity.

Our subsidiaries face an inherent business risk of exposure to product liability or other legal claims or penalties related to the
design, manufacture, marketing, or sale of any of our current or former products and solutions. Our subsidiaries are named
periodically in single incident lawsuits, or, at times, in cumulative trauma product liability lawsuits which may be numerous,
and the number of claims newly asserted in any given period is difficult to predict and may aggregate or escalate suddenly.
Any type of product injury claim may result in losses in excess of available insurance coverage and have a material adverse
effect on our business, operating results, financial condition and liquidity.

On January 5, 2023, the Company divested MSA LLC, a wholly owned subsidiary that holds legacy product liability claims
relating to coal dust, asbestos, silica, and other exposures, to a joint venture between R&Q Insurance Holdings Ltd. and Obra
Capital, Inc. (the "Purchaser") The transaction is subject to risks related to counterparty commercial risk as well as agreement
enforcement and interpretation. Third parties also could seek to assert claims against us for which MSA LLC is the legally
responsible party, and we may be required to incur fees and expenses to enforce that wrongly asserted claims are properly
redirected to MSA LLC. The divested subsidiary MSA LLC and the Purchaser have indemnified us with respect to MSA
LLC’s cumulative trauma product liability losses and other defined exposures. The ability of MSA LLC and the Purchaser to
honor their indemnity obligations is subject to commercial risk and, in addition, in the event of a dispute, the transaction,
negotiated indemnities, and the extent of other legally-available protections may be subject to future judicial interpretation.
MSA and its remaining subsidiaries continue to be responsible for claims relating to any current or former products and
solutions that were not transferred as part of the divestiture.

Our ability to market and sell our products is subject to existing government laws, regulations and standards. Changes
in such laws, regulations and standards or our failure to comply with them could materially and adversely affect our
results of operations.

Most of our products are required to meet performance and test standards designed to protect the safety of people and
infrastructures around the world. Our inability to comply with these standards could result in declines in revenue, profitability
and cash flow. Changes in laws and regulations could reduce the demand for our products or require us to re-engineer our
products, thereby creating opportunities for our competitors. Regulatory approvals for our products may be delayed or denied
for a variety of reasons that are outside of our control. Additionally, market anticipation of significant new standards can cause
customers to accelerate or delay buying decisions.

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We are subject to various federal, state and local laws and regulations across our global organization and any violation
of these laws and regulations could adversely affect our results of operations.

We are subject to numerous, and sometimes conflicting, laws and regulations on matters as diverse as anti-corruption, import/
export controls, product content requirements, trade restrictions, tariffs, taxation, sanctions, internal and disclosure control
obligations, securities regulation, anti-competition, data privacy, Brexit changes and labor relations, among others. This
includes laws and regulations in emerging markets where legal systems may be less developed or familiar to us. Compliance
with diverse legal requirements is costly, time consuming and requires significant resources. Violations of one or more of these
laws or regulations in the conduct of our business could result in significant fines, criminal sanctions against us or our officers,
prohibitions on doing business and damage to our reputation. These actions could result in liability for significant monetary
damages, fines and/or criminal prosecution, unfavorable publicity and other reputational damage and have a material adverse
effect on our business, consolidated results of operations and financial condition.

We are subject to various environmental laws and any violation of these laws could adversely affect our results of
operations.

Included in the extensive laws, regulations and ordinances to which we are subject, are those relating to the protection of the
environment. Examples include those governing discharges to water, discharges to air (including greenhouse gas emissions),
handling and disposal practices for solid and hazardous wastes and the maintenance of a safe workplace. These laws impose
penalties for noncompliance and liability for response costs and certain damages resulting from past and current spills,
disposals, other releases of hazardous materials and other noncompliance with such laws. These environmental laws may
continue to change in the future due to a variety of factors, such as government focus on climate change. We could incur
substantial costs as a result of noncompliance with or liability for cleanup pursuant to these environmental laws. Such laws
continue to change, and we may be subject to more stringent environmental laws in the future. If more stringent environmental
laws are enacted, these future laws could have a material adverse effect on our business, consolidated results of operations and
financial condition.

We are subject to risks related to our environmental, social and governance activities and disclosures.

Environmental social and governance, often referred to as ESG, reporting and disclosure requirements continue to evolve, with
increasing investor expectations and additional regulatory requirements anticipated. Failure to accurately and timely meet these
expectations and requirements may result in reputational damage, regulatory penalties and litigation among other consequences.

We are subject to various U.S and foreign tax laws and any changes in these laws related to the taxation of businesses
and resolutions of tax disputes could adversely affect our results of operations.

The U.S. Congress, the Organization for Economic Co-operation and Development (or, OECD) and other government agencies
in jurisdictions in which we and our affiliates invest or do business have maintained a focus on issues related to the taxation of
multinational companies. The OECD has changed numerous long-standing tax principles through its base erosion and profit
shifting project which could adversely impact our effective tax rate.

We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will
be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our
consolidated financial statements, which could have a material adverse effect on our consolidated results of operations,
financial condition and cash flows.

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RISKS RELATED TO SUPPLY AND MANUFACTURING

Our future results are subject to the risk that purchased components and materials are unavailable or available at
excessive cost due to material shortages, excessive demand, currency fluctuation, inflationary pressure and other
factors.

We depend on various components, materials and services from supply chain partners to manufacture our products. It is
possible that any of our supplier relationships could be terminated or otherwise disrupted, or that our suppliers may be unable to
timely deliver to us. Any sustained interruption in our receipt of adequate supplies or services could have a material adverse
effect on our business, results of operations and financial condition. Our inability to successfully manage price fluctuations due
to market demand, currency risks or material shortages, or future price fluctuations (whether due to inflationary pressures or
otherwise) could have a material adverse effect on our business and our consolidated results of operations and financial
condition.

Our plans to continue to improve productivity and reduce complexity may not be successful, which could adversely
affect our ability to compete.

MSA has integrated parts of its European operating segment that have historically been individually managed entities, into a
centrally managed organization model. We plan to continue to leverage the benefits of scale created from this approach and are
in the process of implementing a more efficient and cost-effective enterprise resource planning system in additional locations
across the International Segment. MSA runs the risk that these and similar initiatives may not be completed substantially as
planned, may be more costly to implement than expected, or may not result in the efficiencies or cost savings anticipated. In
addition, if not properly managed, these initiatives could cause disruptions in our day-to-day operations and have a negative
impact on MSA's financial results. It is also possible that other major productivity and streamlining programs may be required
in the future.

RISKS RELATED TO ECONOMIC, MARKET AND COMPETITIVE CONDITIONS

Unfavorable economic and market conditions could materially and adversely affect our business, results of operations
and financial condition.

We are subject to risks arising from adverse changes in global economic conditions. We have significant operations in a
number of countries outside the U.S., including some in emerging markets. Long-term economic uncertainty in some of the
regions of the world in which we operate, such as Asia, Latin America, the Middle East and Europe, could result in declines in
revenue, profitability and cash flow due to reduced orders, payment delays, supply chain disruptions or other factors caused by
the economic challenges faced by our customers and suppliers.

A portion of MSA's sales are made to customers in the oil, gas and petrochemical market. We estimate that between
approximately 25% - 30% of our global business is sold into the energy market vertical with the most significant exposure in
industrial head protection, portable gas detection and FGFD. Approximately 10% - 15% of consolidated revenue, primarily in
industrial head protection and portable gas detection, is more exposed to a pullback in employment trends across the energy
market. Another 5% - 10% of consolidated revenue, primarily in FGFD is more exposed to a pullback in capital equipment
spending within the energy market. It is possible that volatility in the oil, gas and petrochemical industry, whether related to
economic, climate-related energy policy, or other conditions, could negatively impact our business and could result in declines
in our consolidated results of operations and cash flow.

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Pandemics or disease outbreaks, such as COVID-19, may cause unfavorable economic or market conditions which could
impact demand patterns and/or disrupt global supply chains and manufacturing operations. Collectively, these
outcomes could materially and adversely affect our business, results of operations and financial condition.

Pandemics or disease outbreaks such as COVID-19 could result in a widespread health crisis that could adversely affect the
economies of developed and emerging markets, potentially resulting in an economic downturn that could affect customers’
demand for our products in certain industrial-based end-markets. The spread of pandemics or disease outbreaks may also
disrupt the Company’s manufacturing operations, supply chain, or logistics necessary to import, export and deliver products to
our customers. During a pandemic or crisis, applicable laws and response directives such as vaccine mandates or occupational
safety and health requirements, could, in some circumstances, result in skilled labor impacts including voluntary attrition or
difficulty finding labor, or otherwise adversely affect our ability to operate our plants, obtain inputs from suppliers, or to deliver
our products in a timely manner. Some laws and directives may also hinder our ability to move certain products across borders.
Economic conditions can also influence order patterns. These factors could negatively impact our consolidated results of
operations and cash flow.

A reduction in the spending patterns of government agencies or delays in obtaining government approval for our
products could materially and adversely affect our net sales, earnings and cash flow.

The demand for our products sold to the fire service market, the homeland security market and other government agencies is, in
large part, driven by available government funding. Government budgets are set annually, and we cannot assure that
government funding will be sustained at similar levels in the future. A significant reduction in available government funding
could result in declines in our consolidated results of operations and cash flow.

The markets in which we compete are highly competitive, and some of our competitors have greater financial and other
resources than we do. The competitive pressures faced by us could materially and adversely affect our business, results
of operations and financial condition.

The safety products market is highly competitive, with participants ranging in size from small companies focusing on single
types of safety products, to large multinational corporations that manufacture and supply many types of safety products. Our
main competitors vary by region and product. We believe that participants in this industry compete primarily on the basis of
product characteristics (such as functional performance, technology, cost of ownership, comfort, design and style), price,
service and delivery, customer support, the ability to meet the special requirements of customers, brand name trust and
recognition, and e-business capabilities. Some of our competitors have greater financial and other resources than we do and our
business could be adversely affected by competitors’ new product innovations, technological advances made to competing
products and pricing changes made by us in response to competition from existing or new competitors. We may not be able to
compete successfully against current and future competitors, and the competitive pressures faced by us could have a material
adverse effect our business, consolidated results of operations and financial condition. In addition, e-business is a rapidly
developing area, and the execution of a successful e-business strategy involves significant time, investment and resources. If
we are unable to successfully expand e-business capabilities in support of our customer needs, our brands may lose market
share, which could negatively impact revenue and profitability.

RISKS RELATED TO NEW AND ADJACENT INITIATIVES

Our plans to improve future profitability through restructuring programs may not be successful and could lead to
unintended consequences.

We have incurred and may incur restructuring charges primarily related to severance costs for staff reductions associated with
our ongoing initiatives to drive profitable growth and right size our operations as well as programs to adjust our operations in
response to current business conditions. For example, in 2022, 151 positions were eliminated in response to the changing
business environment. Our cost structure in future periods is somewhat dependent upon our ability to maintain increased
productivity without backfilling certain positions. If our programs are not successful, there could be a material adverse effect
on our business and consolidated results of operations.

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Our inability to successfully identify, consummate and integrate current and future acquisitions or to realize anticipated
cost savings and other benefits could adversely affect our business. Additionally, divestitures may expose us to alleged
potential liabilities which could adversely affect our business.

One of our operating strategies is to selectively pursue acquisitions. Any future acquisitions will depend on our ability to
identify suitable acquisition candidates and successfully consummate such acquisitions. Acquisitions involve a number of risks
including:

•

failure of the acquired businesses to achieve the results we expect;

diversion of our management’s attention from operational matters;

our inability to retain key personnel of the acquired businesses;

risks associated with unanticipated events or liabilities;

potential disruption of our existing business; and

customer dissatisfaction or performance problems at the acquired businesses.

If we are unable to integrate or successfully manage businesses that we have recently acquired or may acquire in the future, we
may not realize anticipated cost savings, improved manufacturing efficiencies and increased revenue, which may result in
material adverse short and long-term effects on our consolidated operating results, financial condition and liquidity. Even if we
are able to integrate the operations of our acquired businesses into our operations, we may not realize the full benefits of the
cost savings, revenue enhancements or other benefits that we may have expected at the time of acquisition. In addition, even if
we achieve the expected benefits, we may not be able to achieve them within the anticipated time frame, and such benefits may
be offset by costs incurred in integrating the acquired companies and increases in other expenses.

We have also divested businesses and may consider divesting businesses in the future. Divestiture risks relate to our ability to
find appropriate purchasers, execute transactions on favorable terms, separate divested business operations with minimal impact
to our remaining operations, and effectively manage any transitional service arrangements. Any of these factors could
materially and adversely affect our consolidated results of operations and financial condition.

If we fail to introduce successful new products or extend our existing product line, we could lose our market position
and our financial performance could be materially and adversely affected.

In the safety products market, there are frequent introductions of new products and product line extensions. If we are unable to
identify emerging customer and technological trends, maintain and improve the competitiveness of our products and introduce
new products, we may lose our market position, which could have a material adverse effect on our business, financial condition
and results of operations. We continue to invest significant resources in research and development and market research, which
includes the development of software platforms for our connected products. However, continued product and/or service
development and marketing efforts are subject to the risks inherent in the development process. These risks include delays, the
failure of new products and product line extensions to achieve anticipated levels of market acceptance and the risk of failed
product introductions.

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RISKS RELATED TO CYBERSECURITY OR MISAPPROPRIATION OF OUR CRITICAL INFORMATION

A failure of our information systems or a cybersecurity breach could materially and adversely affect our business,
results of operations and financial condition.

The proper functioning and security of our information systems is critical to the operation and reputation of our business. This
includes the systems that support and operate our Safety io and MSA+™ platforms. Our information systems may be
vulnerable to damage or disruption from natural or man-made disasters, computer viruses, power losses or other system or
network failures. In addition, hackers, cyber-criminals and other persons could attempt to gain unauthorized access to our
information systems with the intent of harming the Company, harming our information systems or obtaining sensitive
information such as intellectual property, trade secrets, financial and business development information, and customer and
vendor related information. To date, we have not experienced any material breaches or material losses related to cyber-attacks.
If our information systems or security fail, or if there is any compromise or breach of our security, it could disrupt our
operations and/or result in a violation of applicable privacy and other laws, legal and financial exposure, remediation costs,
negative impacts on our customers' willingness to transact business with us, or a loss of confidence in our security measures,
which could have an adverse effect on our business, our reputation and our consolidated results of operations and financial
condition.

Like many companies, from time to time, we have experienced attempts on our computer systems by unauthorized outside
parties. Because the techniques used by computer hackers and others to access or sabotage networks continually evolve and
generally are not recognized until launched against a target, we may be unable to anticipate, prevent or detect these attacks. As
a result, the impact of any future incident cannot be predicted, including the failure of our information systems or
misappropriation of our technologies and/or processes. Any such system failure or loss of such information could harm our
competitive position or cause us to incur significant costs to remedy the damages caused by the incident. We have taken steps
and incurred costs to further strengthen the security of our computer systems and continue to assess, maintain and enhance the
ongoing effectiveness of our information security systems. While we attempt to mitigate these risks by employing a number of
measures, including employee training, comprehensive monitoring of our networks and systems, and maintenance of backup
and protective systems, our systems, networks remain potentially vulnerable to advanced persistent threats. We cannot assure
that ongoing improvements to our infrastructure and cybersecurity programs will be sufficient to prevent or limit the damage
from any future cyber-attack or disruption to our information systems. It is therefore possible that in the future we may suffer
an attack, unauthorized parties may gain access to personal information in our possession and we may not be able to identify
any such incident in a timely manner.

Our continued success depends on our ability to protect our intellectual property. If we are unable to protect our
intellectual property, our business could be materially and adversely affected.

Our success depends, in part, on our ability to obtain and enforce patents, maintain trade secret protection and operate without
infringing on the proprietary rights of third parties. We have been issued patents and have registered trademarks with respect to
many of our products, but our competitors could independently develop similar or superior products or technologies, duplicate
any of our designs, trademarks, processes or other intellectual property or design around any processes or designs on which we
have or may obtain patents or trademark protection. In addition, it is possible that third parties may have, or will acquire,
licenses for patents or trademarks that we may use or desire to use, so that we may need to acquire licenses to, or to contest the
validity of, such patents or trademarks of third parties. Such licenses may not be made available to us on acceptable terms, if at
all, and we may not prevail in contesting the validity of third party rights.

We also protect trade secrets, know-how and other confidential information against unauthorized use by others or disclosure by
persons who have access to them, such as our employees, through contractual arrangements. These agreements may not
provide meaningful protection for our trade secrets, know-how or other proprietary information in the event of any
unauthorized use, misappropriation or disclosure of such trade secrets, know-how or other proprietary information. Our
inability to maintain the proprietary nature of our technologies could have a material adverse effect on our consolidated results
of operations and financial condition.

6983_FIN.pdf 15

RISKS RELATED TO HUMAN CAPITAL MANAGEMENT

If we lose any of our key personnel or are unable to attract, train and/or retain qualified personnel or plan the
succession of senior management, our ability to manage our business and continue our growth could be negatively
impacted.

Our success depends in large part on the continued contributions of our key management, engineering and sales and marketing
personnel, many of whom are highly skilled and would be difficult to replace. Our success also depends on the abilities of new
personnel to function effectively, both individually and as a group. If we are unable to attract, effectively integrate and retain
management, engineering, sales and marketing or other key personnel, then the execution of our growth strategy and our ability
to react to changing market requirements may be impeded, and our business could suffer as a result.

In addition, hiring, training, and successfully integrating replacement critical personnel could be time consuming, may cause
additional disruptions to our operations, and may be unsuccessful, which could negatively impact future revenues. Competition
for personnel is intense, and we cannot assure that we will be successful in attracting and retaining qualified personnel. The
hiring of new personnel may also result in increased costs and we do not currently maintain key person life insurance.

Our success also depends on effective succession planning. Failure to ensure effective transfer of knowledge and smooth
transitions involving senior management could hinder our strategic planning and execution. From time to time, senior
management or other key employees may leave the Company. While we strive to reduce the negative impact of such changes,
the loss of any key employee could result in significant disruptions to our operations, including adversely affecting the
timeliness of product releases, the successful implementation and completion of company initiatives, the effectiveness of our
disclosure controls and procedures and our internal control over financial reporting, and the results of our operations.

We may be unable to hire or retain and develop a highly skilled and diverse global workforce or effectively manage
changes in our workforce and respond to shifts in labor availability.

It it important to our business to hire, retain and develop a highly skilled and diverse global workforce. We compete to hire
new personnel with a variety of capabilities in the many countries in which we manufacture and market our products. We also
invest resources and time to develop and retain our employees' skills and competencies. We could experience unplanned or
increased turnover of employees with key capabilities, or fail to develop adequate succession plans for leadership positions or
hire and retain a workforce with the skills and in the locations we need to operate and grow our business. We could also fail to
attract and develop personnel with key emerging capabilities that we need to continue to respond to changing consumer and
customer needs and grow our business, including skills in the areas of manufacturing, engineering, sales, service, and various
functional support areas. Occurrence of any of these conditions could deplete our institutional knowledge base and erode our
competitiveness.

We are experiencing continuing a tight and competitive labor market and could face unforeseen challenges in the availability of
labor. A sustained labor shortage or increased turnover rates within our employee base have led and could lead to increased
costs such as increased overtime to meet demand and increased wages to attract and retain employees. We have also been
negatively affected and could continue to be negatively affected by labor shortages or constraints experienced by our partners,
including our external manufacturing partners and freight providers. Failure to achieve and maintain a diverse workforce,
compensate our employees competitively and fairly, maintain a safe and inclusive environment or promote the well-being of
our employees could affect our reputation and also result in lower performance and an inability to retain valuable employees.

6983_FIN.pdf 16

RISKS RELATED TO DOING BUSINESS INTERNATIONALLY

We have significant international operations and are subject to the risks of doing business in foreign countries and
global supply chains.

We have business operations in more than 40 international locations. In 2022, approximately one-half of our net sales were
made by operations located outside the United States. We also rely on global supply chains or otherwise source critical
components and raw materials from suppliers based in foreign countries, which at times are used in manufacturing operations
across our global footprint. In certain cases, components could be sole sourced or otherwise not easily substituted due to the
highly regulated nature of our products. Therefore, our operations and sourcing strategies are subject to supply shortages,
sourcing delays, or disruption due to various geopolitical, economic, disasters, and other risks and uncertainties, which could
have a material adverse effect on our business. These risks include the following:

•

Scarcity of parts and components necessary to manufacture our products;

unexpected changes in regulatory requirements;

changes in trade policy or tariff regulations;

changes in tax laws and regulations;

unintended consequences due to changes to the Company's legal structure;

additional valuation allowances on deferred tax assets due to an inability to generate sufficient profit in certain foreign
jurisdictions;

intellectual property protection difficulties or intellectual property theft;

difficulty in collecting accounts receivable;

complications in complying with a variety of foreign laws and regulations, some of which may conflict with U.S. laws;

foreign privacy laws and regulations;

trade protection measures and price controls;

trade sanctions and embargoes;

nationalization and expropriation;

increased international instability, potential instability of foreign governments or impacts from geopolitical conflict
such as supplier or transportation disruptions;

effectiveness of worldwide compliance with MSA's anti-bribery policy, the U.S. Foreign Corrupt Practices Act, and
similar local laws;

difficulty in hiring and retaining qualified employees;

the ability to effectively negotiate with labor unions in foreign countries;

the need to take extra security precautions for our international operations;

costs and difficulties in managing culturally and geographically diverse international operations;

pandemics, severe weather events, or other disasters; and

risks associated with the United Kingdom's decision to exit the European Union, including disruptions to trade and free
movement of goods, services and people to and from the United Kingdom; increased foreign exchange volatility with
respect to the British pound; and additional legal and economic uncertainty.

Any one or more of these risks could have a negative impact on the success of our international operations and, thereby, have a
material adverse effect on our business, consolidated results of operations and financial condition.

6983_FIN.pdf 17

Because we derive a significant portion of our sales from the operations of our foreign subsidiaries, future currency
exchange rate fluctuations could adversely affect our results of operations and financial condition, and could affect the
comparability of our results between financial periods.

Our operations outside of the United States account for a significant portion of our net sales. The results of our foreign
operations are generally reported in local currency and then translated into U.S. dollars at the applicable exchange rates for
inclusion in our consolidated financial statements. The exchange rates between some of these currencies and the U.S. dollar
have fluctuated significantly in recent years and may continue to do so in the future. A weakening of the currencies in which
sales are generated relative to the currencies in which costs are denominated would decrease our results of operations and cash
flow. Although the Company uses instruments to hedge certain foreign currency risks, these hedges only offset a portion of the
Company’s exposure to foreign currency fluctuations.

In addition, because our consolidated financial statements are stated in U.S. dollars, such fluctuations may affect our
consolidated results of operations and financial position, and may affect the comparability of our results between financial
periods. Our inability to effectively manage our exchange rate risks or any volatility in currency exchange rates could have a
material adverse effect on our business, consolidated results of operations and financial condition.

We benefit from free trade laws and regulations, such as the United States-Mexico-Canada Agreement and any changes
to these laws and regulations could adversely affect our results of operations.

Existing free trade laws and regulations, such as the United States-Mexico-Canada Agreement, provide certain beneficial duties
and tariffs for qualifying imports and exports, subject to compliance with the applicable classification and other requirements.
Changes in laws or policies governing the terms of foreign trade, and in particular increased trade restrictions, tariffs or taxes on
imports from countries where we manufacture products, such as China and Mexico, could have a material adverse effect on our
business, consolidated results of operations and financial condition.

GENERAL RISK FACTORS

Damage to the reputation of MSA or to one or more of our product brands could adversely affect our business.

Developing and maintaining our reputation, as well as the reputation of our brands, is a critical factor in our relationship with
customers, distributors and others. Our inability to address negative publicity or other issues, including concerns about product
safety or quality, real or perceived, could negatively impact our business which could have a material adverse effect on our
business, consolidated results of operations and financial condition.

If our goodwill, other intangible assets and long-lived assets become impaired, we may be required to record significant
charges to earnings.

We review our long-lived assets for impairment when events or changes in circumstances indicate the carrying amount may not
be recoverable. Goodwill and indefinite-lived intangible assets are required to be assessed for impairment at least annually.
Factors that may be considered a change in circumstances, indicating that the carrying amount of our goodwill, indefinite-lived
intangible assets or long-lived assets may not be recoverable, include slower growth rates in our markets, reduced expected
future cash flows, increased country risk premiums as a result of political uncertainty and a decline in stock price and market
capitalization. We consider available current information when calculating our impairment charge. If there are indicators of
impairment, our long-term cash flow forecasts for our operations deteriorate or discount rates increase, we may be required to
recognize additional impairment charges in later periods. See Note 13—Goodwill and Intangible Assets of the consolidated
financial statements in Part II Item 8 of this Form 10-K for the carrying amounts of goodwill in each of our reporting segments
and details on indefinite-lived intangible assets that we hold.

Risks related to our defined benefit pension and other post-retirement plans could adversely affect our results of
operations and cash flow.

Significant changes in actual investment return on pension assets, discount rates, and other factors could adversely affect our
results of operations and pension contributions in future periods. U.S. generally accepted accounting principles require that we
calculate income or expense for the plans using actuarial valuations. These valuations reflect assumptions about financial
markets and interest rates, which may change based on economic conditions. Funding requirements for our pension plans may
become more significant. However, the ultimate amounts to be contributed are dependent upon, among other things, interest
rates, underlying asset returns and the impact of legislative or regulatory changes related to pension funding obligations. For
further information regarding our pension plans, refer to Note 15—Pensions and Other Post-retirement Benefits of the
consolidated financial statements in Part II Item 8 of this Form 10-K.

6983_FIN.pdf 18

If we fail to meet our debt service requirements or the restrictive covenants in our debt agreements or if interest rates
increase, our results of operations and financial condition could be materially and adversely affected.

We have a substantial amount of debt upon which we are required to make scheduled interest and principal payments and we
may incur additional debt in the future. A significant portion of our debt bears interest at variable rates that may increase in the
future.

Our debt agreements require us to comply with certain restrictive covenants. If we are unable to generate sufficient cash to
service our debt or if interest rates increase, our consolidated results of operations and financial condition could be materially
and adversely affected. Additionally, a failure to comply with the restrictive covenants contained in our debt agreements could
result in a default, which if not waived by our lenders, could substantially increase borrowing costs and require accelerated
repayment of our debt. Please refer to Note 12—Long-Term Debt of the consolidated financial statements in Part II Item 8 of
this Form 10-K for commentary on our compliance with the restrictive covenants.

Any period of interest rate increases may adversely affect our ability to obtain new financing or to refinance existing debt on
terms the Company deems attractive, the cost of such financing, exchange-rates, and our profitability, which in turn may have a
material adverse effect on our liquidity and capital resources. As of December 31, 2022, we had $308.6 million of variable rate
borrowings under our revolving credit facility. A 50 basis point increase or decrease in interest rates could result in
$1.4 million of additional interest expense. When the $315.0 million of variable rate debt undertaken to complete the MSA,
LLC divestiture is taken into account, a 50 basis point increase or decrease in interest rates could result in $3.0 million of
additional interest expense. Please refer to Note 20—Contingencies of the consolidated financial statements in Part II Item 8 of
this Form 10-K for additional information regarding the divestiture.

6983_FIN.pdf 19

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

Our principal executive offices are located at 1000 Cranberry Woods Drive, Cranberry Township, PA, United States.

We own or lease our primary facilities. Our primary manufacturing locations in the Americas segment are located in Cranberry
Township, PA; Jacksonville, NC; Murrysville, PA; New Kensington, PA; and Pittsfield, NH, and our primary distribution
center is located in New Galilee, PA. The primary manufacturing locations in the International segment are located in Berlin,
Germany; Bristol, United Kingdom; Châtillon-sur-Chalaronne, France, Devizes, United Kingdom; Galway, Ireland; and
Suzhou, China. Our primary research and development centers are located in Berlin, Germany; Cranberry Township, PA; and
Suzhou, China.

We believe that all of our facilities, including the manufacturing facilities, are in good repair and in suitable condition for

the purposes for which they are used.

Item 3. Legal Proceedings

Please refer to Note 20—Contingencies to the consolidated financial statements in Part II Item 8 of this Form 10-K.

Item 4. Mine Safety Disclosures

Not applicable.

6983_FIN.pdf 20

Information about our Executive Officers

The following sets forth the names and ages of our executive officers as of February 16, 2023:

Name
Nishan J. Vartanian(a)
Steven C. Blanco(b)
Bob Leenen(c)
Lee B. McChesney(d)
Stephanie L. Sciullo(e)

Age Title
63 Chairman, President and Chief Executive Officer since May 2020.

56 Sr. Vice President and President, MSA Americas segment since June 2022.

49 Sr. Vice President and President, MSA International segment since June 2022.

51 Sr. Vice President, Chief Financial Officer and Treasurer since October 2022.

38 Sr. Vice President and Chief Legal Officer, Corporate Social Responsibility & Public

Affairs since June 2022.

(a) Prior to his present position, Mr. Vartanian was President and Chief Executive Officer since May 2018.
(b) Prior to his present position, Mr. Blanco served as Vice President and President, MSA Americas segment since August

2017.

September 2017.

(d) Prior to his present position, Mr. McChesney was Vice President, Corporate Finance and Chief Financial Officer, Global
Tools and Storage for Stanley Black & Decker's (a manufacturer of industrial tools and household hardware) since
January 2021; Chief Financial Officer, Global Tools and Storage and Corporate FP&A since November 2019; and prior
thereto served as President, Hand Tools, Accessories and Storage since 2016.

(e) Prior to her present position, Ms. Sciullo was Vice President and Chief Legal Officer, Corporate Social Responsibility &
Public Affairs since August 2021; Vice President and Chief Legal Officer since January 2020; and prior thereto served
as Deputy General Counsel since 2016.

6983_FIN.pdf 21

PART II

Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities

Our common stock is traded on the New York Stock Exchange under the symbol “MSA.” On February 10, 2023, there

were 153 registered holders of our shares of common stock.

Issuer Purchases of Equity Securities

Period
October 1 — October 31, 2022

November 1 — November 30, 2022

December 1 — December 31, 2022

Total Number of
Shares Purchased

Average Price Paid
Per Share

Total Number of
Shares Purchased
as Part of Publicly
Announced
Plans or Programs

Maximum Number
of Shares that
May Yet Be
Purchased
Under the Plans or
Programs

— $

231 $

—

134.47

—

203,214

193,458

189,191

The share repurchase program authorizes up to $100.0 million in repurchases of MSA common stock in the open market
and in private transactions. The share purchase program has no expiration date. The maximum number of shares that may be
purchased is calculated based on the dollars remaining under the program and the respective month-end closing share price.
We have purchased a total of 778,814 shares, or $72.7 million, since this program's inception.

The above shares purchased during the quarter related to stock-based compensation transactions.

We do not have any other share repurchase programs.

6983_FIN.pdf 22

Comparison of Five-Year Cumulative Total Return

The following paragraph compares the most recent five-year performance of MSA stock with (1) the Standard & Poor’s

500 Composite Index, (2) S&P Midcap 400 Index and (3) S&P Midcap 400 Industrials. Because our competitors are
principally privately held concerns or subsidiaries or divisions of corporations engaged in multiple lines of business, we do not
believe it feasible to construct a peer group comparison on an industry or line-of-business basis. The S&P 500 Composite
Index, S&P Midcap 400 Index and the S&P Midcap 400 Industrials, while including corporations both larger and smaller than
MSA in terms of market capitalization, is composed of corporations with an average market capitalization similar to us.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
ASSUMES INITIAL INVESTMENT OF $100

Among MSA Safety Incorporated, the S&P 500 Index, S&P Midcap 400, and S&P Midcap 400 Industrials

Assumes $100 invested on December 31, 2017 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.

2017

2018

2019

2020

2021

2022

Value at December 31,

MSA Safety Incorporated

100.00 $

123.58 $

168.18 $

201.44 $

205.77 $

S&P 500 Index

S&P Midcap 400

S&P Midcap 400 Industrials

100.00

95.62

88.92

85.11

125.72

112.21

113.67

148.85

127.54

132.41

191.58

159.12

170.07

199.25

156.88

138.34

150.52

Item 6. [Reserved]

6983_FIN.pdf 23

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the historical financial statements and other
financial information included elsewhere in this annual report on Form 10-K. This discussion may contain forward-looking
statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on
current expectations, estimates, assumptions and projections about our industry, business and future financial results. Our
actual results could differ materially from the results contemplated by these forward-looking statements due to a number of
factors, including those discussed in the sections of this annual report entitled “Forward-Looking Statements” and “Risk
Factors.”

This section generally discusses the results of our operations for the year ended December 31, 2022 compared to the year

ended December 31, 2021. For a discussion on the year ended December 31, 2021 compared to the year ended December 31,
2020, please refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations"
in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission
on February 19, 2021.

MSA Safety Incorporated ("MSA") is organized into four geographical operating segments that are aggregated into three
reportable geographic segments: Americas, International and Corporate. The Americas segment is comprised of our operations
in North America and Latin America geographies. The International segment is comprised of our operations of all geographies
outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits
from the expenses are derived. Please refer to Note 8—Segment Information of the consolidated financial statements in Part II
Item 8 of this Form 10-K for further information.

On January 5, 2023, the Company divested Mine Safety Appliances LLC ("MSA LLC") a wholly owned subsidiary that
holds legacy product liability claims relating to coal dust, asbestos, silica, and other exposures, to a joint venture between R&Q
Insurance Holdings Ltd. and Obra Capital, Inc. In connection with the closing, MSA contributed $341 million in cash and cash
equivalents, while R&Q and Obra contributed an additional $35 million. As a result of the transaction, MSA will derecognize
all legacy cumulative trauma product liability reserves, related insurance assets, and associated deferred tax assets of the
divested subsidiary from its balance sheet in the first quarter of 2023. R&Q and Obra have assumed management of the
divested subsidiary, including the management of its claims. Refer to Note 20—Contingencies of the consolidated financial
statements in Part II Item 8 of this Form 10-K for further information.

On July 1, 2021, the Company acquired Bacharach, Inc. and its affiliated companies ("Bacharach") in a transaction
valued at $329.4 million, net of cash acquired. Headquartered near Pittsburgh in New Kensington, Pa., Bacharach is a leader in
gas detection technologies used in the heating, ventilation, air conditioning and refrigeration ("HVAC-R") markets.
Bacharach’s advanced instrumentation technologies help protect lives and the environment, while also increasing operational
efficiency for its diversified customer base. Bacharach's portfolio of gas detection and analysis products are used to detect,
measure and analyze leaks of various gases that are commonly found in both commercial and industrial settings. Bacharach has
strong expertise in the refrigerant leak detection market with customers in the HVAC-R, food retail, automotive, commercial
and industrial refrigeration, and military markets. Refer to Note 14—Acquisitions of the consolidated financial statements in
Part II Item 8 of this Form 10-K for further information.

During July 2021, the Company purchased the remaining 10% noncontrolling interest in MSA (China) Safety Equipment

Co., Ltd. from our former China partner for $19.0 million, inclusive of a $5.6 million distribution.

On January 25, 2021, the Company acquired 100% of the common stock of B T Q Limited, including Bristol Uniforms

and Bell Apparel ("Bristol") in an all-cash transaction valued at $63.0 million, net of cash acquired. Bristol, which is
headquartered in the United Kingdom ("U.K."), is a leading innovator and provider of protective apparel to the fire, rescue
services, and utility sectors. The acquisition strengthens MSA's position as a global market leader in fire service personal
protective equipment ("PPE") products, which include breathing apparatus, firefighter helmets, thermal imaging cameras, and
firefighter protective apparel, while providing an avenue to expand its business in the U.K. and key European markets. The fire
service equipment brands of MSA, which include Gallet Firefighter Helmets, the M1 and G1 Self-Contained Breathing
Apparatus range, Cairns Helmets, Globe Manufacturing, and now Bristol, represent more than 460 combined years of
innovation in the fire service industry, with a common mission: protecting the health and safety of firefighters. Bristol is also a
leading manufacturer of flame-retardant, waterproof, and other protective work wear for the utility industry. Marketed under the
Bell Apparel brand, this line complements MSA's existing and broad range of offerings for the global utilities market. Refer to
Note 14—Acquisitions of the consolidated financial statements in Part II Item 8 of this Form 10-K for further information.

6983_FIN.pdf 24

BUSINESS OVERVIEW

MSA is a global leader in the development, manufacture and supply of safety products that protect people and facility
infrastructures. Recognized for their market leading innovation, many MSA products integrate a combination of electronics,
mechanical systems and advanced materials to protect users against hazardous or life-threatening situations. The Company's
comprehensive product line, which is governed by rigorous safety standards across highly regulated industries, is used by
workers around the world in a broad range of markets, including fire service, oil, gas and petrochemical industry, construction,
industrial manufacturing applications, utilities, mining and the military. MSA's core products include breathing apparatus, fixed
gas and flame detection systems, portable gas detection instruments, industrial head protection products, firefighter helmets and
protective apparel, and fall protection devices. We are committed to providing our customers with service unmatched in the
safety industry and, in the process, enhancing our ability to provide a growing line of safety solutions for customers in key
global markets.

We tailor our product offerings and distribution strategy to satisfy distinct customer preferences that vary across

geographic regions. To best serve these customer preferences, we have organized our business into four geographical operating
segments that are aggregated into three reportable geographic segments: Americas, International and Corporate. In 2022, 68%
and 32% of our net sales were made by our Americas and International segments, respectively.

Americas. Our largest manufacturing and research and development facilities are located in the United States. We serve
our markets across the Americas with manufacturing facilities in the U.S., Mexico and Brazil. Operations in the other countries
within the Americas segment focus primarily on sales and distribution in their respective home country markets.

International. Our International segment includes companies in Europe, the Middle East and Africa ("EMEA") and the

Asia Pacific region. In our largest International subsidiaries (in Germany, France, U.K., Ireland and China), we develop,
manufacture and sell a wide variety of products. In China, the products manufactured are sold primarily in China as well as in
regional markets. Operations in other International segment countries focus primarily on sales and distribution in their
respective home country markets. Although some of these companies may perform limited production, most of their sales are
of products manufactured in our plants in Germany, France, the U.S., U.K., Ireland and China or are purchased from third-party
vendors.

Corporate. The Corporate segment primarily consists of general and administrative expenses incurred in our corporate

headquarters, costs associated with corporate development initiatives, legal expense, interest expense, foreign exchange gains or
losses and other centrally-managed costs. Corporate general and administrative costs comprise the majority of the expense in
the Corporate segment. During the years ended December 31, 2022, 2021 and 2020 corporate general and administrative costs
were $40.3 million, $37.6 million, and $28.5 million, respectively. These increases primarily reflect an increase in centrally
managed functions.

6983_FIN.pdf 25

Year Ended December 31, 2022 Compared to Year Ended December 31, 2021

Net Sales

(In millions)
Consolidated
Americas

International

2022
$1,527.9

1,043.2

484.7

2021
$1,400.2

908.1

492.1

Dollar
Increase
(Decrease)
$127.7

135.1

(7.4)

Percent
Increase
(Decrease)
9.1%

14.9%

(1.5)%

Net Sales. Net sales for the year ended December 31, 2022, were $1.53 billion, an increase of $127.7 million, from $1.40
billion for the year ended December 31, 2021, driven by strategic price increases, volume growth, and acquisitions, partially
offset by foreign currency translation. We saw strong growth across most of our core products and across both reporting
segments. Constant currency sales increased by 12.2% for the year ended December 31, 2022. Please refer to the Net Sales
table below for a reconciliation of the year over year sales change.

Net Sales

(Percent Change)
GAAP reported sales change
Currency translation effects

Constant currency sales change

Less: Acquisitions

Organic constant currency change

Year Ended December 31, 2022 versus December 31, 2021

Americas

International

Consolidated

14.9%

0.2%

15.1%

(2.8)%

12.3%

(1.5)%

8.5%

7.0%

(1.6)%

5.4%

9.1%

3.1%

12.2%

(2.3)%

9.9%

Note: Constant currency sales change and Organic constant currency sales change are non-GAAP financial measure provided by the
Company to give a better understanding of the Company's underlying business performance. Constant currency sales change is calculated by
deducting the percentage impact from currency translation effects from the overall percentage change in net sales. Organic constant currency
sales change is calculated by deducting the percentage impact from acquisitions and currency translation effects from the overall percentage
change in net sales.

Net sales for the Americas segment were $1,043.2 million for the year ended December 31, 2022, an increase of $135.1

million, or 14.9%, compared to $908.1 million for the year ended December 31, 2021. During 2022, constant currency sales in
the Americas segment increased 15.1% or on an organic constant currency basis increased 12.3%, excluding acquisitions.
Growth was driven by favorable unit growth, new products, pricing and this volume growth was across most product
categories. The inclusion of Bacharach drove the acquisition related sales.

Net sales for the International segment were $484.7 million for the year ended December 31, 2022, a decrease of $7.4

million, or 1.5%, compared to $492.1 million for the year ended December 31, 2021. Constant currency sales in the
International segment increased 7.0% compared to the prior year period with organic constant currency growth of 5.4%.
Growth was driven by favorable unit growth, new products, pricing and this volume growth was across most product
categories; however, the unfavorable impact of foreign currency translation offset this growth on a reported basis. The
inclusion of Bacharach drove acquisition related sales.

Looking ahead, we continue to operate in a very dynamic environment. There are a number of other evolving factors that

will continue to influence our revenue and earnings outlook. These factors include, among other things, supply chain
constraints, raw material or semiconductor availability, the risk of additional COVID lockdowns, industrial employment rates,
interest rate changes, military conflict, currency exchange volatility, the pace of economic recovery, as well as geopolitical risk,
particularly as it relates to energy uncertainty which could affect operations and suppliers based in Germany and broader
Europe. These or other conditions could impact our future results and growth expectations well into 2023.

Refer to Note 8—Segment Information to the consolidated financial statements in Part II Item 8 of this Form 10-K, for

information regarding sales by product group.

Gross profit. Gross profit for the year ended December 31, 2022 was $673.8 million, an increase of $58.5 million, or 9.5%,
compared to $615.3 million for the year ended December 31, 2021. The ratio of gross profit to net sales was 44.1% in 2022
compared to 43.9% in 2021. Pricing and productivity efforts were partially offset by inflation, inventory and product warranty
charges.

6983_FIN.pdf 26

Selling, general and administrative expenses. Selling, general and administrative ("SG&A") expenses were $338.9 million for
the year ended December 31, 2022, an increase of $6.0 million, or 1.8%, compared to $332.9 million for the year ended
December 31, 2021. Overall, selling, general and administrative expenses were 22.2% of net sales in 2022 compared to 23.8%
of net sales in 2021. Organic constant currency SG&A increased $13 million or 4.0%, demonstrating leverage on revenue
growth. This increase was driven by wage inflation and strategic investments to support revenue growth. Areas of savings
included lower acquisition related costs and savings from our restructuring programs in our International segment. Please refer
to the Selling, general and administrative expenses table for a reconciliation of the year-over-year expense change.

Selling, general, and administrative expenses

(Percent Change)
GAAP reported change
Currency translation effects

Constant currency change

Less: Acquisitions and strategic transaction costs

Organic constant currency change

Year Ended
December 31, 2022 versus December 31, 2021

Consolidated
1.8%

2.9%

4.7%

(0.7)%

4.0%

Note: Constant currency SG&A change and Organic constant currency SG&A change are non-GAAP financial measure provided by the
Company to give a better understanding of the Company's underlying business performance. Constant currency SG&A change is calculated
by deducting the percentage impact from currency translation effects from the overall percentage change in SG&A. Organic constant
currency SG&A change is calculated by deducting the percentage impact from acquisitions and related strategic transaction costs and
currency translation effects from the overall percentage change in SG&A.

Research and development expense. Research and development expense was $57.0 million for the year ended December 31,
2022, a decrease of $0.8 million, or 1.4%, compared to $57.8 million for the year ended December 31, 2021. Research and
development expense was 3.7% of net sales in 2022, compared to 4.1% of net sales in 2021.

We capitalized approximately $8.7 million and $8.1 million of software development costs during the years ended
December 31, 2022 and 2021, respectively. Depreciation expense for capitalized software development cost of $7.9 million
and $4.9 million during the years ended December 31, 2022 and 2021, was recorded in costs of products sold on the
Consolidated Statements of Income. Refer to Note 1—Significant Accounting Policies of the consolidated financial statements
in Part II Item 8 of this Form 10-K for further details regarding our software development costs.

MSA remains committed to dedicating significant resources to research and development activities, including the

development of technology-based safety solutions. As we continue to invest a significant portion of our new product
development into technology-based safety solutions, we anticipate that the historical relationship of research and development
expense to net sales will continue to evolve; however, we do not anticipate reductions in the relative level of total spend on
research and development activities on an annual basis. Total spend on both software development and research and
development activities was $65.7 million and $65.9 million during the years ended December 31, 2022 and 2021.

Restructuring charges. During the year ended December 31, 2022, the Company recorded restructuring charges of $8.0
million primarily related to our ongoing international initiatives to drive profitable growth and right size operations. This
compared to restructuring charges of $16.4 million during the year ended December 31, 2021, primarily related to our ongoing
initiatives to drive profitable growth and acquisition integration activities. We remain focused on executing programs to
optimize our cost structure.

Currency exchange. Currency exchange losses were $10.3 million during the year ended December 31, 2022, compared to
$0.2 million during the year ended December 31, 2021. The currency exchange losses for the current period related primarily
due to foreign currency exposure on unsettled inter-company balances and the recognition of non-cash cumulative translation
losses as result of our plan to close a foreign subsidiary. Currency exchange in 2021 related to foreign currency exposure on
unsettled inter-company balances.

Refer to Note 18—Derivative Financial Instruments of the consolidated financial statements in Part II Item 8 of this

Form 10-K for information regarding our currency exchange rate risk management strategy.

6983_FIN.pdf 27

Product liability expense. Product liability expense during the year ended December 31, 2022 was $20.6 million compared to
$185.3 million for the year ended December 31, 2021. Product liability expense for both periods primarily relates to increases
in MSA LLC's reserve for cumulative trauma product liability claims and defense costs incurred for these claims. Adjustments
to the reserve for the year ended December 31, 2022 totaled $8.4 million net of insurance receivable of $1.6 million. The
reserve includes estimated amounts for claims expected to be resolved through the year 2075. On January 5, 2023, the
Company divested MSA LLC, a wholly owned subsidiary that holds legacy product liability claims relating to coal dust,
asbestos, silica, and other exposures. As a result of the transaction, we will derecognize in the first quarter of 2023 all legacy
cumulative trauma product liability reserves, related insurance assets, and associated deferred tax assets of the divested
subsidiary from our balance sheet and recognize a loss of approximately $200 million. Please refer to Note 20—Contingencies
of the consolidated financial statements in Part II Item 8 of this Form 10-K for additional information.

GAAP operating income. Consolidated operating income for the year ended December 31, 2022 was $239.1 million compared
to $22.8 million for the year ended December 31, 2021. The increase in operating results was driven by the factors described in
the preceding sections.

Adjusted operating income. Americas adjusted operating income for the year ended December 31, 2022 was $267.4 million,
an increase of $64.9 million or 32%, compared to $202.5 million for the year ended December 31, 2021. The increase in
adjusted operating income is primarily attributable to higher sales volumes driven by the full year impact of the Bacharach
acquisition and organic business activity, partially offset by higher SG&A expenses to support business growth.

International adjusted operating income for the year ended December 31, 2022 was $60.9 million, a decrease of $12.4

million, or 17%, compared to adjusted operating income of $73.3 million for the year ended December 31, 2021. The decrease
in adjusted operating income is primarily attributable to lower revenue and gross margins as a result of unfavorable currency
translation and transactional impact, inflationary pressures, partially offset by lower SG&A expenses.

Corporate segment adjusted operating loss for the year ended December 31, 2022 was $37.9 million, an increase of $2.7
million, or 8%, compared to an adjusted operating loss of $35.2 million for the year ended December 31, 2021 due primarily to
increased costs to support higher business activity.

The following tables represent a reconciliation from GAAP operating income to adjusted operating income (loss) and
adjusted EBITDA. Adjusted operating margin % is calculated as adjusted operating income (loss) divided by net sales and
adjusted EBITDA margin % is calculated as adjusted EBITDA divided by net sales.

Adjusted operating income

(In thousands)
Net sales

GAAP operating income

Restructuring charges (Note 3)

Currency exchange losses, net

Product liability expense (Note 20)
Acquisition related costs (Note 14)(a)
Adjusted operating income (loss)

Adjusted operating margin %
Depreciation and amortization(a)
Adjusted EBITDA

Adjusted EBITDA %

Year Ended December 31, 2022

Americas

International

Corporate

Consolidated

$ 1,043,238

$ 484,715

— $ 1,527,953

239,137

7,965

10,255
20,590

12,440
290,387

267,392

60,923

(37,928)

25.6 %

12.6 %

34,334

301,726

12,256

73,179

28.9 %

15.1 %

520

47,110

(37,408)

337,497

6983_FIN.pdf 28

Adjusted operating income

(In thousands)
Net sales

GAAP operating income

Restructuring charges (Note 3)

Currency exchange losses, net

Product liability expense (Note 20)
Acquisition related costs (Note 14)(a)
Adjusted operating income (loss)

Adjusted operating margin %
Depreciation and amortization(a)
Adjusted EBITDA

Year Ended December 31, 2021

Americas

International

Corporate

Consolidated

$ 908,068

$ 492,114

— $ 1,400,182

22,780

16,433

216

185,264

15,884

202,496

73,279

(35,198)

240,577

22.3 %

14.9 %

31,236

233,732

13,718

86,997

463

45,417

(34,735)

285,994

Adjusted EBITDA %
(a) Acquisition related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred
during due diligence and integration. These costs are included in SG&A expense in the unaudited Condensed Consolidated
Statements of Income. Acquisition-related costs also include the acquisition related amortization, which is included in Cost of
products sold in the Consolidated Statements of Income.

17.7 %

25.7 %

Note: Adjusted operating income (loss) and adjusted EBITDA are non-GAAP financial measures. Adjusted operating income
(loss) is reconciled above to the nearest GAAP financial measure, Operating income (loss), and excludes restructuring, currency
exchange, product liability expense, and acquisition related costs. Adjusted EBITDA is reconciled above to the nearest GAAP
financial measure, Operating income (loss) and excludes depreciation and amortization expense. Adjusted operating margin %
and Adjusted EBITDA % are operating ratios derived from non-GAAP financial measures.

Total other expense (income), net. Total other expense, net, for the year ended December 31, 2022, was $0.6 million, a
decrease of $1.4 million compared to other income, net, of $0.8 million for the year ended December 31, 2021, driven
primarily by higher interest expense, related to rising interest rate environment, and a write-down of an equity investment,
partially offset by higher pension income, resulting from higher expected rate of return on plan assets. We expect total interest
expense for 2023 to be between $48 million and $50 million, this increase is primarily related to the additional long-term debt
to divest MSA LLC as of January 5, 2023. We expect non-cash pension income to decline by $8 million compared to 2022.

Income taxes. The reported effective tax rate for the year ended December 31, 2022 was 24.7%, which includes a benefit of
0.8% for share-based payments, expense of 0.1% related to higher profits in foreign jurisdictions, and an expense of 1.2% due
to nondeductible compensation. This compared to a reported effective tax rate for the year ended December 31, 2021 of 7.7%,
which included a benefit of 18.3% for share-based payments, a benefit of 10.9% related to higher profits in foreign jurisdictions
and settlement of a foreign audit, and an expense of 15.3% due to nondeductible compensation.

We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax
positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts
recorded in our consolidated financial statements.

Net income attributable to MSA Safety Incorporated. Net income was $179.6 million for the year ended December 31, 2022,
or $4.56 per diluted share, compared to $21.3 million, or $0.54 per diluted share, for the year ended December 31, 2021.

6983_FIN.pdf 29

Non-GAAP Financial Information

To supplement our Consolidated Financial Statements presented in accordance with generally accepted accounting
principles (“GAAP”), we use, and this report includes, certain non-GAAP financial measures. These financial measures
include organic constant currency changes, financial measures excluding the impact of acquisitions and related acquisition
related costs (including acquisition related amortization), adjusted operating income, adjusted operating margin percentage,
adjusted EBITDA and adjusted EBITDA margin percentage. We believe that the use of these non-GAAP financial measures
provide investors with additional useful information and provide a more complete understanding of our operating performance
and trends, and facilitate comparisons with the performance of our peers. Management also uses these measures internally to
assess and better understand our underlying business performance and trends related to core business activities. The non-GAAP
financial measures and key performance indicators we use, and computational methods with respect thereto, may differ from
the non-GAAP financial measures and key performance indicators, and computational methods, that our peers use to assess
their performance and trends.

The presentation of these non-GAAP financial measures does not comply with U.S. GAAP. These non-GAAP financial

measures should be viewed as supplemental in nature, and not as a substitute for, or superior to, our reported results prepared in
accordance with GAAP. When non-GAAP financial measures are disclosed, the Securities and Exchange Commission's
Regulation G requires: (i) the presentation of the most directly comparable financial measure calculated and presented in
accordance with GAAP and (ii) a reconciliation of the differences between the non-GAAP financial measure presented and the
most directly comparable financial measure calculated and presented in accordance with GAAP. For an explanation of these
measures, together with a reconciliation to the most directly comparable GAAP financial measure, please refer to the
reconciliations referenced above in Management's Discussion & Analysis.

We may also provide financial information on a constant currency basis, which is a non-GAAP financial measure. These
references to a constant currency basis do not include operational impacts that could result from fluctuations in foreign currency
rates, which are outside of management's control. To provide information on a constant currency basis, the applicable financial
results are adjusted by translating current and prior period results in local currency to a fixed foreign exchange rate. This
approach is used for countries where the functional currency is the local country currency. This information is provided so that
certain financial results can be viewed without the impact of fluctuations in foreign currency rates, thereby facilitating period-
to-period comparisons of business performance. Constant currency information is not recognized under U.S. GAAP and it is
not intended as an alternative to U.S. GAAP measures.

LIQUIDITY AND CAPITAL RESOURCES

Our main source of liquidity is operating cash flows, supplemented by borrowings. Our principal liquidity requirements

are for working capital, capital expenditures, principal and interest payments on debt, declared dividend payments and
acquisitions. At December 31, 2022, approximately 46% of our long-term debt is at fixed interest rates with repayment
schedules through 2036. The remainder of our long-term debt is at variable rates on an unsecured revolving credit facility that
is due in 2026. At December 31, 2022, approximately 82% of our borrowings are denominated in US dollars, which limits our
exposure to currency exchange rate fluctuations.

At December 31, 2022, the Company had cash and cash equivalents, including restricted cash, totaling $164.4 million,

and access to sufficient capital, providing ample liquidity and flexibility to continue to maintain our balanced capital allocation
strategy. At December 31, 2022, $589.9 million of the existing $900.0 million senior revolving credit facility was unused,
including letters of credit issued under the facility. The facility also provides an accordion feature that allows the Company to
access an additional $400.0 million of capacity pending approval by MSA’s board of directors and from the bank group. The
Company believes our healthy balance sheet and access to significant capital at the year ended December 31, 2022, positions us
well to navigate through challenging business conditions.

Operating activities. Operating activities provided cash of $157.5 million in 2022, compared to providing cash of $199.1

million in 2021. The reduced operating cash flow as compared to the same period in 2021 was primarily related to increased
working capital requirements, notably increased inventory balances at year-end 2022 to support the higher backlog and
accounts receivable related to stronger fourth quarter 2022 revenue. Payments for subsidiary MSA LLC's product liability
claims exceeded collections from insurance companies by $27.2 million in the year ended December 31, 2022, compared to
$24.1 million in 2021. On January 5, 2023, the Company divested MSA LLC and as a result, will derecognize all legacy
cumulative trauma product liability reserves, related insurance assets, and associated deferred tax assets of the divested
subsidiary from our balance sheet and will recognize a loss of approximately $200 million in the first quarter of 2023 and
expect related cash outflows to be recognized within operating activities in the consolidated statements of cash flows. R&Q
and Obra have assumed management of the divested subsidiary, including the management of its claims. The divestiture
enhances operating cash flow predictability by eliminating costs associated with defending and settling the transferred claims.

6983_FIN.pdf 30

Please refer to Note 20—Contingencies of the consolidated financial statements in Part II Item 8 of this Form 10-K for
additional information.

Investing activities. Investing activities used cash of $4.5 million for the year ended December 31, 2022, compared to
using $415.5 million in 2021. The decrease in cash used in investing activities as compared to the same period in 2021 was
primarily related to the absence of acquisitions. We remain active in evaluating additional acquisition opportunities that will
allow us to continue to grow in key end markets and geographies.

Financing activities. Financing activities used cash of $113.4 million for the year ended December 31, 2022, compared

to providing cash of $203.9 million in 2021. During 2022, we had net payments on long-term debt of $13.0 million as
compared to net proceeds on long-term debt of $293.2 million during the same period in 2021 to fund the acquisitions of
Bacharach and Bristol and buy-out our minority partner in our China business. We paid cash dividends of $71.5 million during
2022, compared to $68.6 million, exclusive of a $5.6 million dividend to our former noncontrolling interest partner in China as
part of the buy-out, during 2021. We also used cash of $34.4 million during 2022 to repurchase shares, compared to using $6.2
million during the same period in 2021. In 2022, $30.4 million of our repurchase activity was related to purchases under our
2015 stock repurchase program.

In January 2023, we entered into a new $250 million term loan and $65 million was drawn down from our revolving

credit facility to fund the divestiture of MSA LLC, a wholly owned subsidiary that, at the time of divestiture held legacy
product liability claims relating to coal dust, asbestos, silica, and other exposures. Subsequent to this transaction, we have more
than $500 million of availability remaining on our revolving credit facility.

CUMULATIVE TRANSLATION ADJUSTMENTS

The year-end position of the U.S. dollar relative to international currencies at December 31, 2022, resulted in a translation

loss of $19.5 million being recorded to cumulative translation adjustments shareholders' equity account for the year ended
December 31, 2022, compared to a translation loss of $25.4 million being recorded to the cumulative translation adjustments
account during 2021.

COMMITMENTS AND CONTINGENCIES

We are obligated to make future payments under various contracts, including debt and lease agreements. Our significant

cash obligations as of December 31, 2022, are as follows:

(In millions)
Long-term debt

Operating leases

Inventory costing method
change tax
Transition tax

Totals

Total

2023

2024

2025

2026

2027

Thereafter

575.2 $

7.4 $

316.0 $

7.4 $

229.6

52.2

10.0

8.0

2.0
637.4 $

2.7

0.7
20.8 $

7.5

2.7

5.2

2.6

4.1

—

3.4

—

1.3
18.9 $

—
15.2 $

—
320.1 $

—
10.8 $

22.0

—

—
251.6

The significant obligations table does not include obligations to taxing authorities due to uncertainty surrounding the
ultimate settlement of amounts and timing of these obligations. It also does not include $315 million of variable rate debt
related to the January 5, 2023, divestiture of MSA LLC.

We expect to meet our future debt service obligations through cash provided by operations. Approximately $308.6
million of debt payable in 2026, included in the table above, relates to our unsecured senior revolving credit facility that has a
weighted average interest rate of 5.13% as of December 31, 2022. We expect to generate sufficient operating cash flow to make
payments against this amount each year. To the extent that a balance remains when the facility matures in 2026, we expect to
refinance the remaining balance through new borrowing facilities. Interest expense on fixed rate debt over the next five years is
expected to be approximately $7.5 million in 2023, $7.3 million in 2024, $7.0 million in 2025, $6.8 million in 2026 and $6.6
million in 2027. We expect total interest expense for 2023 to be between $48 million and $50 million.

6983_FIN.pdf 31

The Company had outstanding bank guarantees and standby letters of credit with banks as of December 31, 2022 totaling
$9.3 million, of which $1.5 million relate to the senior revolving credit facility. These letters of credit serve to cover customer
requirements in connection with certain sales orders and insurance companies. The Company is also required to provide cash
collateral in connection with certain arrangements. At December 31, 2022, the Company has $1.5 million of restricted cash in
support of these arrangements.

We expect to make net contributions of $8.2 million to our pension plans in 2023 which are primarily associated with our

International segment. We have not been required to make contributions to our U.S. based qualified defined benefit pension
plan in many years.

We have purchase commitments for materials, supplies, services and property, plant and equipment as part of our

ordinary conduct of business.

Please refer to Note 20—Contingencies to the consolidated financial statements in Part II Item 8 of this Form 10-K for

further discussion on the Company's product liabilities.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

We prepare our consolidated financial statements in accordance with U.S. generally accepted accounting principles (U.S.

GAAP). The preparation of these financial statements requires us to make estimates and judgments that affect the reported
amounts of assets, liabilities, revenues and expenses and the related disclosures. We evaluate these estimates and judgments on
an on-going basis based on historical experience and various assumptions that we believe to be reasonable under the
circumstances. However, different amounts could be reported if we had used different assumptions and in light of different facts
and circumstances. Actual amounts could differ from the estimates and judgments reflected in our consolidated financial
statements. A summary of the Company's significant accounting policies is included in Note 1—Significant Accounting
Policies to the consolidated financial statements in Part II, Item 8 of this Form 10-K.

The more critical judgments and estimates used in the preparation of our consolidated financial statements are discussed
in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-K for the
year ended December 31, 2022. During 2021, the Company made acquisitions that raised business combinations to a critical
accounting policy and estimate. There were no business combinations during 2022.

Business combinations. In accordance with the accounting guidance for business combinations, the Company uses the

acquisition method of accounting to allocate costs of acquired businesses to the assets acquired and liabilities assumed based on
their estimated fair values at the dates of acquisition. The excess costs of acquired businesses over the fair values of the assets
acquired and liabilities assumed will be recognized as goodwill. The valuations of the acquired assets and liabilities will impact
the determination of future operating results. In addition to using management estimates and negotiated amounts, the Company
uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities including: third-
party appraisals for the estimated value and lives of identifiable intangible assets and property, plant and equipment; third-party
actuaries for the estimated obligations of defined benefit pension plans and similar benefit obligations; and legal counsel or
other experts to assess the obligations associated with legal, environmental and other contingent liabilities.

The business and technical judgment of management was used in determining which intangible assets have indefinite

lives and in determining the useful lives of finite-lived intangible assets in accordance with the accounting guidance for
goodwill and other intangible assets.

Cumulative trauma product liability. The Company and its subsidiaries face an inherent business risk of exposure to

product liability claims arising from the alleged failure of our products to prevent the types of personal injury or death against
which they are designed to protect. Product liability claims are categorized as either single incident or cumulative trauma.

Single incident product liability claims involve incidents of short duration that are typically known when they occur and

involve observable injuries, which provide a more objective basis for quantifying damages. The Company estimates its
subsidiaries' liability for single incident product liability claims based on expected settlement costs for asserted single incident
product liability claims and an estimate of costs for single incident product liability claims incurred but not reported ("IBNR").
Single incident product liability exposures are evaluated on an annual basis, or more frequently if changing circumstances
warrant. Adjustments are made to the reserve as appropriate.

6983_FIN.pdf 32

Cumulative trauma product liability claims involve exposures to harmful substances that occurred over many years and
may have developed over long periods of time into diseases. In the case of MSA LLC, the subsidiary's combined cumulative
trauma product liability reserve is based upon estimates of its liability for asserted and IBNR cumulative trauma product
liability claims. In addition, in connection with finalizing and reporting the Company's results of operations, management works
annually (unless significant changes in trends or new developments warrant an earlier review) with an outside valuation
consultant and outside legal counsel to review MSA LLC's potential exposure to all cumulative trauma product liability claims.
Each of these factors may increase or decrease significantly within an individual period depending on, among other things, the
timing of claims filings or settlements, or litigation outcomes during a particular period that are especially favorable or
unfavorable to MSA LLC. We accordingly consider MSA LLC’s claims experience over multiple periods and/or whether there
are changes in MSA LLC’s claims experience and trends that are likely to continue for a significant time into the future in
determining whether to make an adjustment to the reserve, rather than evaluating such factors solely in the short term.

Please refer to Note 20—Contingencies to the consolidated financial statements in Part II Item 8 of this Form 10-K for

further discussion on the Company's product liabilities and divestiture of MSA LLC on January 5, 2023.

Income taxes. We recognize deferred tax assets and liabilities using enacted tax rates to record the tax effect of temporary
differences between the book and tax basis of recorded assets and liabilities. We record valuation allowances to reduce deferred
tax assets to the amounts that we estimate are probable to be realized. When assessing the need for valuation allowances, we
consider projected future taxable income and prudent and feasible tax planning strategies. Should a change in circumstances
lead to a change in our judgments about the realizability of deferred tax assets in future years, we adjust the related valuation
allowances in the period that the change in circumstances occurs.

We record an estimated income tax liability based on our best judgment of the amounts likely to be paid in the various tax

jurisdictions in which we operate. We record tax benefits related to uncertain tax positions taken or expected to be taken on a
tax return when such benefits meet a more likely than not threshold. We recognize interest related to unrecognized tax benefits
in interest expense and penalties in operating expenses. The tax liabilities ultimately paid are dependent on a number of factors,
including the resolution of tax audits, and may differ from the amounts recorded. Tax liabilities are adjusted through income
when it becomes probable that the actual liability differs from the amount recorded.

Pensions and other post-retirement benefits. We sponsor certain pension and other post-retirement benefit plans.
Accounting for the net periodic benefit costs and credits for these plans requires us to estimate the cost of benefits to be
provided well into the future and to attribute these costs over the expected work life of the employees participating in these
plans. These estimates require our judgment about discount rates used to determine these obligations, expected returns on plan
assets, rates of future compensation increases, rates of increase in future health care costs, participant withdrawal and mortality
rates and participant retirement ages. Differences between our estimates and actual results may significantly affect the cost of
our obligations under these plans and could cause net periodic benefit costs and credits to change materially from year-to-year.
Discount rates and plan asset valuations are point-in-time measures. The discount rate assumptions used in determining
projected benefit obligations for our U.S. and foreign plans were based on the spot rate method at December 31, 2022.

Expected returns on plan assets are based on capital market expectations by asset class.

The following table summarizes the impact of changes in significant actuarial assumptions on our December 31, 2022

actuarial valuations.

(In thousands)
(Decrease) increase in net benefit cost

Impact of Changes in Actuarial Assumptions

Change in Discount
Rate

Change in Expected
Return

Change in Market Value
of Assets

(1)%

(5)%

$ (7,875) $ 9,942 $ (5,682) $ 5,682 $ (1,482) $ 1,333

(Decrease) increase in projected benefit obligation

(61,274) 77,324

Increase (decrease) in funded status

61,274

(77,324)

—

25,853

(25,853)

6983_FIN.pdf 33

Goodwill and Indefinite-lived Intangible Assets. On October 1st of each year, or more frequently if indicators of
impairment exist or if a decision is made to sell a business, we evaluate goodwill for impairment. Such indicators may include
a decline in expected cash flows, a significant adverse change in the business climate, unanticipated competition, slower growth
rates, or negative developments in equity and credit markets, among others.

All goodwill is assigned to and evaluated for impairment at the reporting unit level, which is defined as an operating

segment or one level below an operating segment. The evaluation of impairment involves using either a qualitative or
quantitative approach as outlined in Accounting Standards Codification ("ASC") Topic 350. In 2022, we performed a
quantitative test at October 1, 2022. Quantitative testing involves comparing the estimated fair value of each reporting unit to its
carrying value. We estimate reporting unit fair value using a weighted average of fair values determined by discounted cash
flow ("DCF") and market approach methodologies, as we believe both are important indicators of fair value. A number of
assumptions and estimates are involved in the application of the DCF model, including sales volumes and prices, costs to
produce, tax rates, capital spending, discount rates, and working capital changes. Cash flow forecasts are generally based on
approved business unit operating plans for the early years and historical relationships in later years. The market approach
methodology measures value through an analysis of peer companies. The analysis entails measuring the multiples of EBITDA
at which peer companies are trading.

In the event the carrying value is in excess of the estimated fair value of a reporting unit per the weighted average of the
DCF and market approach models, an impairment loss equal to such excess would be recognized, which could materially and
adversely affect reported consolidated results of operations and shareholders’ equity. At October 1, 2022, based on our
quantitative test, the fair values of each of our reporting units exceeded their respective carrying value by at least 42%.

The intangible asset with an indefinite life is also subject to impairment testing on October 1st of each year, or more

frequently if indicators of impairment exist. The impairment test compares the fair value of the intangible asset with its
carrying amount. We perform a quantitative assessment of the indefinite lived trade name intangible asset as outlined in ASC
350 by comparing the estimated fair value of the trade name intangible asset to its carrying value. We estimate the fair value
using the relief from royalty income approach. A number of significant assumptions and estimates are involved in the
application of the relief from royalty model, including sales volumes and prices, royalty rates and tax rates. Forecasts are based
on sales generated by the underlying trade name assets and are generally based on approved business unit operating plans for
the early years and historical relationships in later years. At October 1, 2022, based on our quantitative test, the fair value of the
trade name asset exceeded its carrying value by approximately 37%.

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS

None

6983_FIN.pdf 34

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market risk represents the risk of adverse changes in the value of a financial instrument caused by changes in currency

exchange rates, interest rates and equity prices. We are exposed to market risks related to currency exchange rates and interest
rates.

Currency exchange rates. We are subject to the effects of fluctuations in currency exchange rates on various

transactions and on the translation of the reported financial position and operating results of our non-U.S. companies from local
currencies to U.S. dollars. A hypothetical 10% strengthening or weakening of the U.S. dollar would increase or decrease our
reported sales and net income for the year ended December 31, 2022 by approximately $62.8 million and $6.5 million, or 4.1%
and 3.6%, respectively.

When appropriate, we may attempt to limit our transactional exposure to changes in currency exchange rates through

forward contracts or other actions intended to reduce existing exposures by creating offsetting currency exposures. At
December 31, 2022, we had open foreign currency forward contracts with a U.S. dollar notional value of $103.0 million. A
hypothetical 10% increase in December 31, 2022 forward exchange rates would result in a $10.3 million increase in the fair
value of these contracts.

Interest rates. We are exposed to changes in interest rates primarily as a result of borrowing and investing activities used
to maintain liquidity and fund business operations. Because of the relatively short maturities of temporary investments and the
variable rate nature of our revolving credit facility, these financial instruments are reported at carrying values which
approximate fair values.

At December 31, 2022, we had $266.5 million of fixed rate debt which matures at various dates through 2036. The

incremental increase in the fair value of fixed rate long-term debt resulting from a hypothetical 10% decrease in interest rates
would be approximately $8.0 million. However, our sensitivity to interest rate declines and the corresponding increase in the
fair value of our debt portfolio would unfavorably affect earnings and cash flows only to the extent that we elected to
repurchase or retire all or a portion of our fixed rate debt portfolio at prices above carrying values.

At December 31, 2022, we had $308.6 million of variable rate borrowings under our revolving credit facility. A 50 basis
point increase or decrease in interest rates could have a $1.4 million impact on future pre-tax earnings under our current capital
structure. A 50 basis point increase or decrease in interest rates could have a $3.0 million impact on future pre-tax earnings
when the additional $315.0 million of variable rate debt undertaken to complete the MSA, LLC divestiture is taken into
account.

6983_FIN.pdf 35

Item 8. Financial Statements and Supplementary Data

Management’s Reports to Shareholders

Management’s Report on Responsibility for Financial Reporting

Management of MSA Safety Incorporated (the Company) is responsible for the preparation of the consolidated financial

statements included in this annual report. The consolidated financial statements were prepared in accordance with accounting
principles generally accepted in the United States of America and include amounts that are based on the best estimates and
judgments of management. The other financial information contained in this annual report is consistent with the consolidated
financial statements.

Management’s Report on Internal Control Over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting. The
Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles.

The Company’s internal control over financial reporting includes policies and procedures that (1) pertain to the

maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with
authorizations of management and the directors of the Company; and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on our
financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,

projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31,

2022. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on our assessment and those criteria,
management has concluded that the Company maintained effective internal control over financial reporting as of December 31,
2022.

The Company's independent registered public accounting firm that audited the consolidated financial statements included

in this annual report issued an attestation report on the Company's internal control over financial reporting.

/s/ NISHAN J. VARTANIAN
Nishan J. Vartanian
Chairman, President and Chief Executive Officer

/s/ LEE B. MCCHESNEY

Lee B. McChesney
Senior Vice President and Chief Financial Officer

February 16, 2023

6983_FIN.pdf 36

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of MSA Safety Incorporated

Opinion on Internal Control over Financial Reporting

We have audited MSA Safety Incorporated’s internal control over financial reporting as of December 31, 2022, based on
criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (2013 framework) (the COSO criteria). In our opinion, MSA Safety Incorporated (the Company)
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the
COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated balance sheets of the Company as of December 31, 2022 and 2021, the related consolidated
statements of income, comprehensive income, cash flows, and changes in retained earnings, accumulated other comprehensive
loss and noncontrolling interests for each of the three years in the period ended December 31, 2022, and the related notes and
financial statement schedule listed in the Index at Item 15(a) 2 and our report dated February 16, 2023 expressed an unqualified
opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report
on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control
over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

Pittsburgh, Pennsylvania
February 16, 2023

6983_FIN.pdf 37

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of MSA Safety Incorporated

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of MSA Safety Incorporated (the Company) as of December
31, 2022 and 2021, the related consolidated statements of income, comprehensive income, cash flows, and changes in retained
earnings, accumulated other comprehensive loss and noncontrolling interests for each of the three years in the period ended
December 31, 2022, and the related notes and financial statement schedule listed in the Index at Item 15(a) 2 (collectively
referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all
material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its
cash flows for each of the three years in the period ended December 31, 2022, in conformity with U.S. generally accepted
accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in
Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(2013 framework), and our report dated February 16, 2023 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial
statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or
disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex
judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial
statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on
the critical audit matter or on the accounts or disclosures to which it relates.

6983_FIN.pdf 38

Valuation of cumulative trauma product liability claims

Description of the Matter As more fully described in Notes 1 and 20 to the consolidated financial statements, the
Company's subsidiary MSA LLC is named as a defendant in lawsuits comprised of
cumulative trauma product liability claims involving potential exposures to substances that
are alleged to have occurred over a number of years. In recent periods, this has included
asbestos, silica and coal dust claims. It is probable that MSA LLC will incur losses related to
asserted and incurred but not reported (IBNR) claims and that the amount of losses can be
reasonably estimated. At December 31, 2022, the Company’s reserve for cumulative trauma
product liability claims was $395.1 million, representing its best estimate of the expected
losses related to these claims.

How We Addressed the Matter
in Our Audit

Auditing management’s accounting for and disclosure of loss contingencies arising from
cumulative trauma product liability claims was especially challenging, as the estimate of
probable loss is highly subjective. In particular, the estimate was sensitive to significant
assumptions that included, among others, the number of claims asserted against MSA LLC
and the counsel asserting those claims, the percentage of claims resolved through settlement
and the values of settlements paid to claimants.

We obtained an understanding, evaluated the design and tested the operating effectiveness of
relevant internal controls over the Company’s assessment and measurement of its estimate of
probable loss for its subsidiary's cumulative trauma product liability claims. Our audit
procedures included testing controls over the Company’s assessment and measurement of
the best estimate of the expected losses related to cumulative trauma product liability claims.

To test the Company’s assessment of its subsidiary's cumulative trauma product liability
claims, we performed audit procedures which included, among others: reading the minutes
of the meetings of the committees of the board of directors, requesting and receiving internal
and external legal counsel letters, meeting with internal and external counsel to discuss the
claims, meeting with management’s valuation consultant, testing the completeness and
accuracy of data from underlying systems that are used in the Company’s assessment,
performing a historical lookback analysis on claims data, performing a search for new or
contrary evidence affecting the assessment, and obtaining a representation letter from the
Company. Additional audit procedures to test the Company’s valuation of the expected
losses related to cumulative trauma product liability claims included: evaluating significant
assumptions underlying the estimate, including the number of claims asserted against MSA
LLC and the counsel asserting those claims, the percentage of claims resolved through
settlement and the values of settlements paid to claimants. We engaged our actuarial
specialists to assist in the analysis of the significant assumptions and methodology used by
management. Our procedures also included evaluating the sufficiency of the Company’s
disclosures with respect to cumulative trauma product liability claims described in Note 20
to the consolidated financial statements.

/s/ Ernst & Young LLP

We have served as the Company’s auditor since 2014.

Pittsburgh, Pennsylvania
February 16, 2023

6983_FIN.pdf 39

MSA SAFETY INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)
Net sales

Cost of products sold

Gross profit

Selling, general and administrative

Research and development

Restructuring charges (Note 3)

Currency exchange losses, net

Product liability expense (Note 20)

Operating income

Interest expense

Other income, net (Note 16)

Total other expense (income), net

Income before income taxes

Provision for income taxes (Note 10)

Net income

Year ended December 31,

2022

2021

2020

$ 1,527,953 $ 1,400,182 $ 1,348,223

854,122

673,831

784,834

615,348

752,731

595,492

338,872

332,862

290,334

57,012

7,965

10,255

20,590

239,137

57,793

16,433

216

185,264

22,780

58,268

27,381

8,578

39,036

171,895

21,660

10,758

(21,056)

(11,582)

604

(824)

9,432

(5,684)

3,748

238,533

58,903

23,604

1,816

168,147

43,009

179,630 $

21,788 $

125,138

Net income attributable to noncontrolling interests

—

(448)

(1,061)

Net income attributable to MSA Safety Incorporated

179,630 $

21,340 $

124,077

Earnings per share attributable to MSA Safety Incorporated common
shareholders (Note 9):

Basic

Diluted

Dividends per common share

4.58 $

4.56 $

1.82 $

0.54 $

1.75 $

3.19

3.15

1.71

The accompanying notes are an integral part of the consolidated financial statements.

6983_FIN.pdf 40

MSA SAFETY INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)
Net income

Other comprehensive (loss) income, net of tax:

Foreign currency translation adjustments (Note 6)

Pension and post-retirement plan actuarial gains, net of tax (Note 6)
Unrealized gains (losses) on available-for-sale securities (Note 6)

Reclassifications from accumulated other comprehensive loss into net income (Note 6)

Total other comprehensive (loss) income, net of tax

Comprehensive income

Comprehensive income attributable to noncontrolling interests

Comprehensive income attributable to MSA Safety Incorporated

Year ended December 31,

2022

2021

2020

$ 179,630 $ 21,788 $ 125,138

(19,453) (25,354) 22,260

6,961

58,256

9,296

2,912

(4)

267

(7)

216

(9,577) 33,165

31,765

170,053

54,953

156,903

—

(356)

(1,220)

$ 170,053 $ 54,597 $ 155,683

The accompanying notes are an integral part of the consolidated financial statements.

6983_FIN.pdf 41

MSA SAFETY INCORPORATED

CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)
Assets
Cash and cash equivalents
Trade receivables, less allowance for credit loss of $6,769 and $5,789
Inventories (Note 4)
Investments, short-term (Note 19)
Prepaid income taxes
Notes receivable, insurance companies (Note 20)
Prepaid expenses and other current assets

Total current assets

Property, plant and equipment, net (Note 5)
Operating lease right-of-use assets, net (Note 17)
Prepaid pension cost (Note 15)
Deferred tax assets (Note 10)
Goodwill (Note 13)
Intangible assets, net (Note 13)
Notes receivable, insurance companies, noncurrent (Note 20)
Insurance receivable (Note 20) and other noncurrent assets

Total assets

Liabilities
Notes payable and current portion of long-term debt (Note 12)
Accounts payable
Employees’ compensation
Insurance and product liability (Note 20)
Income taxes payable (Note 10)
Accrued restructuring (Note 3) and other current liabilities

Total current liabilities

Long-term debt, net (Note 12)
Pensions and other employee benefits (Note 15)
Noncurrent operating lease liabilities (Note 17)
Deferred tax liabilities (Note 10)
Product liability (Note 20) and other noncurrent liabilities

Total liabilities

Commitments and contingencies (Note 20)

December 31,

2022

2021

162,902 $
297,028
338,316
9,905
21,700
5,931
44,344
880,126

140,895
254,187
280,617
48,974
21,235
3,914
42,982
792,804

207,552
44,142
141,643
25,490
620,622
281,853
38,695
136,853

207,793
50,178
163,283
35,257
636,858
306,948
44,626
158,649
$ 2,376,976 $ 2,396,396

7,387 $

112,532
45,077
73,898
6,149
100,822
345,865

—
106,780
49,884
55,125
5,366
113,451
330,606

565,445
137,810
35,345
31,881
336,889

597,651
189,973
40,706
33,337
369,735
$ 1,453,235 $ 1,562,008

Shareholders' Equity
Preferred stock, 4.5% cumulative, $50 par value (Note 7)
Common stock, no par value (180,000,000 shares authorized; 62,081,391 shares issued;
39,213,064 and 39,276,518 shares outstanding at December 31, 2022 and 2021, respectively)
Treasury shares, at cost (Note 7)
Accumulated other comprehensive loss (Note 6)
Retained earnings

Total shareholders’ equity
Total liabilities and shareholders’ equity

3,569

281,980
(361,438)
(158,717)
1,158,347
923,741

260,121
(330,376)
(149,140)
1,050,214
834,388
$ 2,376,976 $ 2,396,396

The accompanying notes are an integral part of the consolidated financial statements.

6983_FIN.pdf 42

MSA SAFETY INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)
Operating Activities
Net income
Depreciation and amortization
Stock-based compensation (Note 11)
Pension (income) expense (Note 15) and other charges
Deferred income tax benefit (Note 10)
Loss on asset write-down and dispositions, net
Pension contributions (Note 15)
Currency exchange losses, net (Note 6)
Product liability expense (Note 20)
Collections on insurance receivable and notes receivable,
insurance companies (Note 20)
Product liability payments (Note 20)
Changes in:

Trade receivables
Inventories (Note 4)
Accounts payable
Other current assets and liabilities
Other noncurrent assets and liabilities
Cash Flow From Operating Activities

Investing Activities

Capital expenditures
Purchase of short-term investments (Note 19)
Proceeds from maturities of short-term investments (Note 19)
Acquisitions, net of cash acquired (Note 14)
Property disposals and other investing
Cash Flow Used In Investing Activities

Financing Activities

Year ended December 31,
2021

2020

2022

$ 179,630 $ 21,788 $ 125,138
39,674
6,920
10,082
(2,254)
236
(5,596)
8,578
39,036

50,317
18,908
2,448
(38,850)
788
(5,543)
216
185,264

56,317
19,650
(11,499)
5,171
6,290
(5,032)
10,255
20,590

9,516

15,443

10,853

(36,755)

(39,548)

(23,727)

(38,587)
(67,366)
7,585
(1,795)
3,485
157,455

4,374
(17,827)
13,299
823
(12,755)

7,677
(13,645)
(3,069)
7,749
(1,097)
206,555

199,145

(42,553)
(48,905)
(43,837)
(79,542) (133,913) (199,318)
175,000
—
454
(72,769)

160,000
119,000
(392,437)
—
(1,389)
(5,286)
(4,484) (415,473)

Payments on long-term debt (Note 12)
Proceeds from long-term debt (Note 12)
Debt issuance costs
Cash dividends paid
Acquisition of noncontrolling interests in consolidated subsidiaries (Note 14)
Distribution to noncontrolling interests (Note 14)
Company stock purchases (Note 7)
Exercise of stock options (Note 7)
Employee stock purchase plan (Note 7)
Cash Flow (Used In) Provided by Financing Activities
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Increase (decrease) in cash, cash equivalents and restricted cash
Beginning cash, cash equivalents and restricted cash
Ending cash, cash equivalents and restricted cash

(71,497)

(2,106)
(68,586)
(13,381)
(5,632)
(6,171)
5,770
855
(113,350) 203,925

(1,023,000) (1,346,557) (1,031,000)
987,000
1,010,000
1,639,733
—
—
(66,578)
—
—
(29,144)
12,446
747
(126,529)
1,234
(16,631)
8,491
22,990
141,438
152,543
161,034
$ 164,428 $ 141,438 $ 161,034

(34,394)
4,650
891

(7,193)
(19,596)

—
—

Supplemental cash flow information:

Cash and cash equivalents
Restricted cash included in prepaid expenses and other current assets
Total cash, cash equivalents and restricted cash
Interest paid in cash
Income tax paid in cash

$ 162,902 $ 140,895 $ 160,672
362
$ 164,428 $ 141,438 $ 161,034

1,526

543

9,856
$ 20,740 $
$ 60,491 $ 45,556 $ 61,072

9,288 $

The accompanying notes are an integral part of the consolidated financial statements.

6983_FIN.pdf 43

MSA SAFETY INCORPORATED

CONSOLIDATED STATEMENTS OF CHANGES IN RETAINED EARNINGS,

ACCUMULATED OTHER COMPREHENSIVE LOSS AND NONCONTROLLING INTERESTS

(In thousands, except per share amounts)
Balances at January 1, 2020

Net income

Foreign currency translation adjustments

Pension and post-retirement plan adjustments, net of $2,245 tax benefit

Unrecognized net losses on available-for-sale securities (Note 19)

Reclassification of currency translation from accumulated other comprehensive
loss into net income (Note 6)
(Income) loss attributable to noncontrolling interests

Common dividends ($1.71 per share)

Preferred dividends ($0.5625 per share)

Balances at December 31, 2020
Net income

Foreign currency translation adjustments

Pension and post-retirement plan adjustments, net of $18,564 tax benefit

Unrecognized net losses on available-for-sale securities (Note 19)

Reclassification of currency translation from accumulated other comprehensive
loss into net income (Note 6)
(Income) loss attributable to noncontrolling interests

Acquisition of noncontrolling interests in consolidated subsidiaries

Distributions to noncontrolling interests (Note 14)

Common dividends ($1.75 per share)

Preferred dividends ($0.5625 per share)

Balances at December 31, 2021
Net income

Foreign currency translation adjustments

Pension and post-retirement plan adjustments, net of $2,570 tax benefit

Unrecognized net gains on available-for-sale securities (Note 19)

Reclassification of currency translation from accumulated other comprehensive
loss into net income (Note 6)
Common dividends ($1.82 per share)

Preferred dividends ($0.5625 per share)

Balances at December 31, 2022

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Noncontrolling
Interests

$ 1,045,593 $

(214,003) $

6,773

125,138

—

22,260

9,296

(7)

216

—

(1,061)

(66,537)

(41)

(159)

1,220

—

1,103,092

(182,397)

7,993

21,788

—

(448)

—

(5,632)

(68,545)

(41)

—

(25,354)

58,256

(4)

267

—

1,050,214

(149,140)

179,630

—
—

—

(71,456)

(41)

—

(19,453)
6,961

2,912

—

$ 1,158,347 $

(158,717) $

—

356

(8,349)

—

—
—

—

The accompanying notes are an integral part of the consolidated financial statements.

6983_FIN.pdf 44

MSA SAFETY INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1—Significant Accounting Policies

General Information and Basis of Presentation—The consolidated financial statements of MSA Safety Incorporated
("MSA" or "the Company") are prepared in conformity with accounting principles generally accepted in the United States of
America ("U.S. GAAP") and require management to make certain judgments, estimates, and assumptions. These may affect the
reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated
financial statements. They also may affect the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates upon subsequent resolution of identified matters.

Principles of Consolidation—The consolidated financial statements include the accounts of the Company and all

subsidiaries. Intercompany accounts and transactions are eliminated.

Noncontrolling Interests—Noncontrolling interests reflect noncontrolling shareholders’ investments in certain
consolidated subsidiaries and their proportionate share of the income and accumulated other comprehensive loss of those
subsidiaries. During July 2021, the Company purchased the remaining noncontrolling interests in MSA (China) Safety
Equipment Co., Ltd. See Note 14—Acquisitions for further detail.

Currency Translation—The functional currency of all significant non-U.S. subsidiaries is the local country currency.
Assets and liabilities of these operations are translated at year-end exchange rates. Income statement accounts are translated
using the average exchange rates for the reporting period. Translation adjustments for these subsidiaries are reported as a
component of shareholders’ equity and are not included in net income. Foreign currency transaction gains and losses are
included in net income for the reporting period.

Cash Equivalents—Cash equivalents include temporary deposits with financial institutions and highly liquid investments

with original maturities of 90 days or less. Highly liquid investments consist of money market funds which were $1.9 million
and $8.7 million at December 31, 2022 and 2021, respectively. These funds are valued at net asset value (“NAV”). These funds
are required to price and transact at a NAV per share that fluctuates based upon the pricing of the underlying portfolio of
securities. This requirement may impact the value of these fund shares.

Restricted Cash—Restricted cash, which is designated for use other than current operations, is included in prepaid

expenses and other current assets in the Consolidated Balance Sheets. Restricted cash balances were $1.5 million and $0.5
million at December 31, 2022 and 2021, respectively. These balances were used to support letter of credit balances.

Inventories—Inventories are stated at the lower of cost and net realizable value, which approximates current replacement

cost. Cost is determined using the FIFO method. It is the Company's general policy to write-down any inventory balance in
excess of the last 24 months of consumption and any inventory identified as obsolete.

Investment securities—The Company’s investment securities, primarily consisting of fixed income securities, are
classified as available-for-sale. The securities are recorded at fair market value and included in “Investments, short-term” in the
accompanying Consolidated Balance Sheets with changes in fair market value recorded in other comprehensive income, net of
tax. The purchases and sales of these investments are classified as investing activities in the Consolidated Statements of Cash
Flows.

Property and Depreciation—Property is recorded at cost. Depreciation is computed primarily using the straight-line

method over the estimated useful lives of the assets, generally as follows: buildings 20 to 40 years, and machinery and
equipment 3 to 10 years. Expenditures for significant renewals and improvements are capitalized. Ordinary repairs and
maintenance are expensed as incurred. Gains or losses on property dispositions are included in other (income) expense, net and
the cost and related accumulated depreciation are removed from the accounts. Depreciation expense for the years ended
December 31, 2022, 2021 and 2020 was $36.7 million, $33.0 million and $27.7 million, respectively. Properties, plant, and
equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such
assets or asset groups may not be recoverable.

6983_FIN.pdf 45

Software Development Costs—Software development costs are costs incurred to create, enhance and deploy the

Company’s broad range of wireless technology and cloud-based computing safety services. Software development costs, other
than software development costs qualifying for capitalization, are expensed as incurred. Costs of computer software developed
or obtained for internal use that are incurred in the preliminary project and post implementation stages are expensed as incurred.
Certain costs incurred during the application and development stage, which primarily include compensation and related
expenses, are capitalized. Additionally, costs of upgrades and enhancements are capitalized when it is probable that the
upgrades and enhancements will result in added functionality. During 2022, 2021 and 2020, respectively, there was
approximately $8.7 million, $8.1 million and $8.2 million of software development costs capitalized. The Company has
unamortized computer software development costs of $16.5 million and $15.7 million as of December 31, 2022 and 2021,
respectively, included in property, plant and equipment, net.

Capitalized costs are amortized through cost of products sold using the straight-line method over the estimated useful life,
which is normally three years, beginning in the period in which the software is ready for its intended use or when the upgrade or
enhancement is deployed. Software development cost depreciation expense was $7.9 million, $4.9 million and $1.5 million
during the years ended December 31, 2022, 2021 and 2020, respectively.

Lessee Arrangements—At the inception of our contracts, we determine if the contract is or contains a lease. A contract is

or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. Right-of-use assets and operating lease liabilities are recognized based on the present value of lease payments
over the lease term at commencement. We use our incremental borrowing rate ("IBR") at the recognition date in determining
the present value of future payments for leases that do not have a readily determinable implicit rate. Our IBR reflects a fully
secured rate based on our credit rating, taking into consideration the repayment timing of the lease and any impacts due to the
economic environment in which the lease operates.

Our lease payments are largely fixed. Variable lease payments that depend on an index or a rate are included in the lease
payments and are measured using the prevailing index or rate at the measurement date, with differences between the calculated
lease payment and the actual lease payment being expensed in the period of the change. Other variable lease payments,
including utilities, consumption and common area maintenance as well as repairs, maintenance and mileage overages on
vehicles, are expensed during the period incurred. A majority of our real estate leases include options to extend the lease and
options to early terminate the lease. Leases with an early termination option generally involve a termination payment. If we are
reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and
the lease liability. Some of our leases contain residual value guarantees. These are guarantees made to the lessor that the value
of an underlying asset returned to the lessor at the end of a lease will be at least a specified amount. Our leases do not contain
restrictions or covenants that restrict us from incurring other financial obligations. For our leases, we have elected to not apply
the recognition requirements to leases of less than twelve months. These leases are expensed on a straight-line basis and are not
included within the Company's operating lease asset or liability.

Lease right-of-use assets and liabilities are recognized based on the present value of the fixed future lease payments over
the lease term. Operating leases are included in Operating lease right-of-use assets, net, Accrued restructuring and other current
liabilities, and Noncurrent operating lease liabilities in our Consolidated Balance Sheets. Finance leases are included in
Property, plant and equipment, net, Accrued restructuring and other current liabilities, and Product liability and other
noncurrent liabilities in our Consolidated Balance Sheets. Lease expense for all operating leases is classified in Cost of
products sold or Selling, general and administrative expense in the Consolidated Statements of Income. For finance leases, the
amortization of the right-of-use asset is included in depreciation and amortization, and the interest is included in interest
expense.

Lessor Arrangements—The Company derives a portion of its revenue from various leasing arrangements where the

Company is the lessor, primarily fire service contracts entered into by Bristol which was acquired in January 2021 (Note 14).
Such arrangements provide for monthly payments covering equipment provided, maintenance and interest. These arrangements
meet the criteria to be accounted for as sales-type leases under Accounting Standards Codification ("ASC") 842 and contain
both lease and non-lease components. For a component to be separate, the customer would be able to benefit from the right of
use of the component separately or with other resources readily available to the customer and the right of the use is not highly
dependent or highly interrelated with the other rights to use the other underlying assets or components.

Revenue from equipment provided is considered a lease component and recognized with point in time revenue
recognition upon lease commencement. Upon the recognition of such revenue, an asset is established for the investment in
sales-type leases. Maintenance revenue, which is considered a non-lease component, and interest are recognized monthly over
the lease term. Lease revenues and interest earned by the Company, included in the Consolidated Statements of Income, were
not material to any of the years ended December 31, 2022, 2021 and 2020.

6983_FIN.pdf 46

Net investment in sales-type leases of $5.7 million and $19.4 million were included in Prepaid expenses and other current

assets and Insurance receivable and other noncurrent assets, respectively, in the Consolidated Balance Sheets as of
December 31, 2022. The portion in Insurance receivable and other noncurrent assets at December 31, 2022 is expected to be
collected over the next seven years.

Goodwill and Other Intangible Assets—Intangible assets with a finite useful life are amortized on a straight-line basis

over their useful lives. Indefinite lived intangible assets are assessed for possible impairment annually on October 1st or
whenever circumstances change such that the recorded value of the asset may not be recoverable. We performed a quantitative
assessment of the indefinite lived trade name intangible asset as outlined in ASC 350 by comparing the estimated fair value of
the trade name intangible asset to its carrying value. We estimate the fair value using the relief from royalty income approach.
A number of assumptions and estimates are involved in the application of the relief from royalty model, including sales
volumes and prices, royalty rates and tax rates. Forecasts are based on sales generated by the underlying trade name assets and
are generally based on approved business unit operating plans for the early years and historical relationships in later years.
Based on these assessments, no impairments were identified during the years ended December 31, 2022, 2021 or 2020.

Goodwill is not amortized, but is subject to impairment assessments. On October 1st of each year, or more frequently if

indicators of impairment exist or if a decision is made to sell a business, we evaluate goodwill for impairment. Judgment is
involved in determining if an indicator of impairment has occurred. Such indicators may include a decline in expected cash
flows, a significant adverse change in the business climate, unanticipated competition, slower growth rates, or negative
developments in equity and credit markets, among others.

All goodwill is assigned to and evaluated for impairment at the reporting unit level, which is defined as an operating

segment or one level below an operating segment. The evaluation of impairment involves using either a qualitative or
quantitative approach as outlined in ASC Topic 350. In 2022, we performed a two-step quantitative test at October 1, 2022.
Step 1 of the quantitative testing involves comparing the estimated fair value of each reporting unit to its carrying value. We
estimate reporting unit fair value using a weighted average of fair values determined by discounted cash flow ("DCF") and
market approach methodologies, as we believe both are important indicators of fair value. A number of assumptions and
estimates are involved in the application of the DCF model, including sales volumes and prices, costs to produce, tax rates,
capital spending, discount rates, and working capital changes. Cash flow forecasts are generally based on approved reporting
unit operating plans for the early years and historical relationships in later years. The market approach methodology measures
value through an analysis of peer companies. The analysis entails measuring the multiples of earnings before interest, taxes,
depreciation and amortization ("EBITDA") at which peer companies are trading.

There has been no impairment of our goodwill during the years ended December 31, 2022, 2021 or 2020.

Revenue Recognition—We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with
Customers. Revenue from the sale of products is recognized when there is persuasive evidence of an arrangement and control
passes to the customer, which generally occurs either when product is shipped to the customer or, in the case of most U.S.
distributor customers, when product is delivered to the distributor's delivery site. We establish our shipping terms according to
local practice and market characteristics. We do not ship product unless we have an order or other documentation authorizing
shipment to our customers. Our payment terms vary by the type and location of our customer and the products offered. The
term between invoicing and when payment is due is not significant. Revenue is measured as the amount of consideration we
expect to receive in exchange for transferring goods or providing services. Amounts billed and due from our customers are
classified as receivables on the Consolidated Balance Sheets. We make appropriate provisions for credit losses which have
historically been insignificant in relation to our net sales. Certain contracts with customers, primarily distributor customers,
have an element of variable consideration that is estimated when revenue is recognized under the contract to the extent that it is
material to the individual contract. Variable consideration includes volume incentive rebates, performance guarantees, price
concessions and returns. Rebates are based on achieving a certain level of purchases and other performance criteria that are
documented in established distributor programs. These rebates are estimated based on projected sales to the customer and
accrued as a reduction of net sales as they are earned by the customer. The rebate accrual is reviewed monthly and adjustments
are made as the estimate of projected sales changes. Product returns, including an adjustment for restocking fees if it is
material, are estimated based on historical return experience and revenue is adjusted. Sales, value add and other taxes collected
with revenue-producing activities and remitted to governmental authorities are excluded from revenue.

Depending on the terms of the arrangement, we may defer revenue for which we have a future obligation, including
training, extended warranty, maintenance and technical services, until such time that the obligation has been satisfied. We use
an observable price, or a cost plus margin approach when one is not available, to determine the stand-alone selling price for
separate performance obligations. We have elected to recognize the cost for shipping and handling as an expense when control
of the product has passed to the customer. These costs are included within the Cost of products sold line on the Consolidated
Statements of Income. Amounts billed to customers for shipping and handling are included in net sales.

6983_FIN.pdf 47

Product Warranties—Estimated expenses related to product warranties and additional service actions are charged to Cost

of products sold in the period in which the related revenue is recognized or when significant product quality issues are
identified.

Research and Development—Research and development costs are expensed as incurred.

Income Taxes—Deferred income taxes are recognized for temporary differences between financial and tax reporting.

Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary
differences are expected to be recovered or settled. If it is more likely than not that some portion or all of a deferred tax asset
will not be realized, a valuation allowance is recognized. We record tax benefits related to uncertain tax positions taken or
expected to be taken on a tax return when such benefits meet a more likely than not threshold. We recognize interest related to
unrecognized tax benefits in interest expense and penalties in operating expenses. Deferred taxes are booked for available cash
in excess of working capital for non-U.S. subsidiaries as these earnings are not considered to be permanently reinvested.

Stock-Based Compensation—We recognize expense for employee and non-employee director stock-based compensation

based on the grant date fair value of the awards. Except for retirement-eligible participants, for whom there is no requisite
service period, this expense is recognized ratably over the requisite service periods following the date of grant. For retirement-
eligible participants, this expense is recognized over an accelerated period of at least one year.

Derivative Instruments—We may use derivative instruments from time to time to minimize the effects of changes in

currency exchange rates. We do not enter into derivative transactions for speculative purposes and do not hold derivative
instruments for trading purposes. Changes in the fair value of derivative instruments designated as fair value hedges are
recorded in the balance sheet as adjustments to the underlying hedged asset or liability. Changes in the fair value of derivative
instruments that do not qualify for hedge accounting treatment are recognized in the Consolidated Statements of Income and
Consolidated Statements of Cash Flows as Currency exchange losses, net in the current period.

Commitments and Contingencies—For asserted claims and assessments, liabilities are recorded when a loss is deemed to

be probable and the amount of the loss is reasonably estimable. Management assesses the probability of an unfavorable
outcome with respect to asserted claims or assessments based on many factors such as the nature of the matter, available
defenses and case strategy, progress of the matter, views and opinions of legal counsel and other advisors, applicability and
success of appeals processes, and the outcome of similar historical matters, among others. Once an unfavorable outcome is
assessed to be probable, management evaluates estimates of the potential loss, and the most reasonable loss estimate is recorded
(or, if the estimate of the loss is a range, and no amount within the range is considered to be a better estimate than any other
amount, the minimum amount in the range is recorded). If a loss is deemed to be reasonably possible but less than probable and/
or such loss cannot be reasonably estimated, then the matter is disclosed and no liability is recorded.

With respect to unasserted claims or assessments, management first determines whether it is probable that a claim or
assessment may be asserted and then, if so, the degree of probability of an unfavorable outcome. If an unfavorable outcome is
probable, management assesses whether the amount of potential loss can be reasonably estimated and, if so, accrues the most
reasonable estimate of the loss (or, if the estimate of the loss is a range, and no amount within the range is considered to be a
better estimate than any other amount, the minimum amount in the range is recorded). If an unfavorable outcome is reasonably
possible but less than probable, or the amount of loss cannot be reasonably estimated, then the matter is disclosed and no
liability is recorded. Legal matters are reviewed on a continuous basis to determine if there has been a change in management’s
judgment regarding the likelihood and/or estimate of a potential loss. Please refer to Note 20 — Contingencies for further
details on product liability related matters.

Concentration of credit and business risks - We are exposed to credit risk in the event of nonpayment by customers,

principally in the oil, gas and petrochemical, fire service, construction, utilities, and mining industries. Changes in these
industries or other developments may significantly affect our financial performance and management's estimates. We mitigate
our exposure to credit risk by performing ongoing credit evaluations and, when deemed necessary, requiring letters of credit,
credit insurance, prepayments, guarantees or other collateral. No individual customer represented more than 10% of our sales
or receivables as of December 31, 2022 or 2021 or for any of the three years ended December 31, 2022.

6983_FIN.pdf 48

Note 2—Cash and Cash Equivalents

Several of the Company's affiliates participate in a notional cash pooling arrangement to manage global liquidity
requirements. As part of a master netting arrangement, the participants combine their cash balances in pooling accounts at the
same financial institution with the ability to offset bank overdrafts of one participant against positive cash account balances held
by another participant. Under the terms of the master netting arrangement, the financial institution has the right, ability and
intent to offset a positive balance in one account against an overdrawn amount in another account. Amounts in each of the
accounts are unencumbered and unrestricted with respect to use. As such, the net cash balance related to this pooling
arrangement is included in Cash and cash equivalents in the Consolidated Balance Sheets.

The Company's net cash pool position consisted of the following:

(In thousands)
Gross cash pool position

Less: cash pool borrowings

Net cash pool position

Note 3—Restructuring Charges

December 31, 2022
72,271
$

(65,102)

7,169

During the years ended December 31, 2022, 2021 and 2020, we recorded restructuring charges of $8.0 million, $16.4
million and $27.4 million, respectively. These charges were primarily related to our ongoing initiatives to drive profitable
growth and right size our operations.

Americas segment restructuring charges of $2.3 million during the year ended December 31, 2022, were related to
various optimization activities. International segment restructuring charges of $5.1 million during the year ended December 31,
2022, were primarily related to the implementation of our new European Shared Service Center in Warsaw, Poland. Corporate
segment restructuring charges of $0.6 million during the year ended December 31, 2022, were primarily related to programs to
realign the organization and adjust our operations in response to current business conditions.

A total of 151 positions were eliminated in 2022. There were 24 positions eliminated in the Americas segment, 123 in

the International segment and 4 in the Corporate segment.

Americas segment restructuring charges of $4.6 million during the year ended December 31, 2021, were primarily related

to integration related activities and costs associated with our global Fixed Gas & Flame Detection manufacturing footprint
optimization as well as programs to adjust our operations in response to current business conditions. International segment
restructuring charges of $11.2 million during the year ended December 31, 2021, were primarily related to our initiatives to
drive profitable growth and right size our operations. Corporate segment restructuring charges of $0.6 million during the year
ended December 31, 2021, were primarily related to programs to adjust our operations in response to current business
conditions.

A total of 143 positions were eliminated in 2021. There were 66 positions eliminated in the Americas segment, 71 in the

International segment, and 6 in the Corporate segment.

Americas segment restructuring charges of $4.7 million during the year ended December 31, 2020, were related to costs

associated with our global Fixed Gas & Flame Detection manufacturing footprint optimization as well as programs to adjust our
operations in response to current business conditions. International segment restructuring charges of $21.9 million during the
year ended December 31, 2020, were primarily related to severance costs for staff reductions and footprint optimization
associated with our ongoing initiatives to drive profitable growth. Corporate segment restructuring charges of $0.8 million
during the year ended December 31, 2020, were primarily related to programs to adjust our operations in response to current
business conditions.

A total of 121 positions were eliminated in 2020. There were 42 positions eliminated in the Americas segment, 76 in the

International segment, and 3 in the Corporate segment.

6983_FIN.pdf 49

Activity and reserve balances for restructuring charges by segment were as follows:

(in millions)

Americas

International

Corporate

Total

Reserve balances at January 1, 2020

0.3 $

5.9 $

— $

Restructuring charges

Currency translation and other adjustments

Cash payments / utilization

4.7

(0.1)

(2.1)

Reserve balances at December 31, 2020

2.8 $

Restructuring charges

Currency translation and other adjustments

Cash payments / utilization

4.6

(0.1)

(4.0)

21.9

0.1

(8.6)

19.3 $

11.2

(0.2)

(12.9)

0.8

—

0.4 $

0.6

—

(0.7)

Reserve balances at December 31, 2021

3.3 $

17.4 $

0.3 $

Restructuring charges

Currency translation and other adjustments

Cash payments / utilization

Reserve balances at December 31, 2022

2.3

0.1

(4.0)

1.7 $

5.1

(1.3)

(8.4)

0.6

—

(0.4)

12.8 $

0.5 $

6.2

27.4

—

22.5

16.4

(0.3)

(17.6)

21.0

8.0

(1.2)

(12.8)

15.0

(0.4)

(11.1)

Restructuring reserves at December 31, 2022 and 2021 are included in Accrued restructuring and other current liabilities in our
Consolidated Balance Sheets.

Note 4—Inventories

The following table sets forth the components of inventory:

(In thousands)
Finished products

Work in process

Raw materials and supplies

Total inventories

Note 5—Property, Plant, and Equipment

The following table sets forth the components of property, plant and equipment:

(In thousands)

Land

Buildings

Machinery and equipment

Construction in progress

Total

Less accumulated depreciation

Property, plant and equipment, net

December 31,

2022

2021

97,142 $

16,360

224,814

338,316 $

87,657

6,534

186,426

280,617

December 31,

2022

2021

4,884 $

138,618

466,394

22,097

631,993

5,131

136,272

435,652

36,552

613,607

(424,441)

(405,814)

207,552 $

207,793

6983_FIN.pdf 50

Note 6—Reclassifications Out of Accumulated Other Comprehensive Loss

(In thousands)
Pension and other post-retirement benefits(a)
Balance at beginning of period

Unrecognized net actuarial (losses) gains

Tax benefit (expense)

Total other comprehensive (loss) gain before
reclassifications, net of tax
Amounts reclassified from accumulated other
comprehensive loss into net income:

Amortization of prior service credit (Note 15)

Recognized net actuarial losses (Note 15)

Tax benefit

MSA Safety Incorporated

Noncontrolling Interests

2022

2021

2020

2022

2021

2020

$ (57,296)

$ (115,552) $ (124,848) $ — $ — $ —

(2,862)

703

54,384

(6,322) —

—

(12,804)

1,997

—

(2,159)

41,580

(4,325) —

—

(199)

12,592

(3,273)

(95)

(216) —

—

22,531

18,079

—

(5,760)

(4,242) —

—

Total amount reclassified from accumulated other
comprehensive loss, net of tax, into net income
Total other comprehensive income

9,120

6,961

16,676

13,621

—

$ 58,256 $

9,296 $ — $ — $ —

Balance at end of period
Available-for-sale securities
Balance at beginning of period

Unrealized gain (loss) on available-for-sale
securities (Note 19)
Balance at end of period
Foreign currency translation
Balance at beginning of period

Reclassification from accumulated other
comprehensive loss into net income(b)
Acquisition of noncontrolling interests in
consolidated subsidiaries
Foreign currency translation adjustments

$ (50,335)

$ (57,296) $ (115,552) $ — $ — $ —

(5)

(1) $

6 $ — $ — $ —

(2)

(4)

(5) $

(7) —

—

(1) $ — $ — $ —

$ (91,839)

$ (66,844) $ (89,161) $ — $ 372 $ 213

2,912 (c)

—

267

—

216

—

(280) —

(19,453)

(25,262)

22,101

—

(92)

159

Balance at end of period
$ (108,380)
(a)Reclassifications out of accumulated other comprehensive loss and into net income are included in the computation of net
periodic pension and other post-retirement benefit costs (refer to Note 15—Pensions and Other Post-retirement Benefits).
(b)Included in Currency exchange losses, net, within the Consolidated Statements of Income.
(c)Reclassifications out of accumulated other comprehensive loss and into net income relate primarily to the approval of our plan
to close a foreign subsidiary.

$ (91,839) $ (66,844) $ — $ — $ 372

6983_FIN.pdf 51

Note 7—Capital Stock

Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting

stock which is callable at $52.50. There were 71,340 shares issued and 52,998 shares held in treasury at both December 31,
2022 and 2021. The Treasury shares at cost line of the Consolidated Balance Sheets includes $1.8 million related to preferred
stock. There were no shares of preferred stock purchased and subsequently held in treasury during the years ended December
31, 2022, or 2021. The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting
stock. No shares have been issued as of December 31, 2022 or 2021.

Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were
62,081,391 shares issued as of December 31, 2022 and December 31, 2021. There were 39,213,064 and 39,276,518 shares
outstanding at December 31, 2022 and 2021, respectively.

Treasury Shares - The Company's stock repurchase program authorizes up to $100.0 million to repurchase MSA
common stock in the open market and in private transactions. The share repurchase program has no expiration date. The
maximum number of shares that may be purchased is calculated based on the dollars remaining under the program and the
respective month-end closing share price. Under the program, there were 251,408 shares repurchased during 2022, no shares
repurchased during 2021 and 175,000 shares repurchased during 2020. We do not have any other share repurchase programs.
There were 22,868,327 and 22,804,873 Treasury shares at December 31, 2022 and 2021, respectively.

The Company issues Treasury shares for all stock based benefit plans. Shares are issued from Treasury at the average

Treasury share cost on the date of the transaction. There were 219,214 and 246,376 Treasury shares issued for these purposes
during the years ended December 31, 2022 and 2021, respectively.

6983_FIN.pdf 52

Common stock activity is summarized as follows:

(Dollars in thousands)
Balance at January 1, 2020

Restricted stock awards

Restricted stock expense

Restricted stock forfeitures

Stock options exercised

Stock option expense

Stock option forfeitures

Performance stock issued

Performance stock expense

Performance stock forfeitures

Employee stock purchase plan

Treasury shares purchased

Share repurchase program

Balances December 31, 2020
Restricted stock awards

Restricted stock expense

Restricted stock forfeitures

Stock options exercised

Stock option expense

Stock option forfeitures

Performance stock issued

Performance stock expense

Employee stock purchase plan

Treasury shares purchased

Acquisition of noncontrolling interests in consolidated
subsidiaries

Balances December 31, 2021
Restricted stock awards

Restricted stock expense

Restricted stock forfeitures

Stock options exercised

Stock option expense

Performance stock issued

Performance stock expense

Performance stock forfeitures
Employee stock purchase plan

Treasury shares purchased

Share repurchase program

Balances December 31, 2022

Dollars

Issued

Treasury

Common
Stock

Treasury
Cost

62,081,391

(23,240,197) $

229,127 $ (303,566)

—

55,691

—

274,672

—

(773)

7,065

(807)

8,590

153

(40)

773

—

3,856

—

134,824

(1,826)

1,826

—

6,494

(69,973)

(175,000)

1,305

(755)

654

—

(9,025)

(20,113)

62,081,391

(23,013,489) $

242,693 $ (326,156)

—

53,934

—

122,119

—

64,543

—

5,730

(37,710)

(762)

6,562

(765)

4,003

(9)

(939)

13,227

772

—

762

—

1,767

—

939

—

(6,171)

—

(4,751)

—

62,081,391

(22,804,873) $

260,121 $ (328,776)

—
—

—

—
—

—

52,810
—

—
103,545

—

55,447

—
—

7,412

(31,260)

(251,408)

(711)
7,715

(1,227)
3,021

(880)

15,843
(2,730)

779

—

711
—

—
1,629

—

880

—
—

112

(4,021)

(30,373)

62,081,391

(22,868,327) $

281,980 $ (359,838)

6983_FIN.pdf 53

Note 8—Segment Information

We are organized into four geographical operating segments that are based on management responsibilities: Northern
North America, Latin America, Europe, Middle East & Africa, and Asia Pacific. The operating segments have been aggregated
(based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three
reportable segments: Americas, International, and Corporate.

The Americas segment is comprised of our operations in North America and Latin America geographies. The

International segment is comprised of our operations in all geographies outside of the Americas. Certain global expenses are
allocated to each segment in a manner consistent with where the benefits from the expenses are derived.

The Company's sales are allocated to each segment based primarily on the country destination of the end-customer.

Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and

amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate
segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income excluding
restructuring charges, currency exchange gains (losses), product liability expense, acquisition related costs, including
acquisition related amortization. Adjusted operating margin is defined as adjusted operating income (loss) divided by segment
net sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and
amortization. Adjusted EBITDA margin is defined as adjusted EBITDA divided by segment net sales to external customers.

The accounting principles applied at the operating segment level in determining operating income (loss) are generally the

same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are
accounted for at market-based transaction prices and are eliminated in consolidation.

6983_FIN.pdf 54

Reportable segment information is presented in the following table:

(In thousands)

2022

Net sales to external customers
Operating income
Restructuring charges (Note 3)
Currency exchange losses, net (Note 6)
Product liability expense (Note 20)
Acquisition related costs(a) (Note 14)
Adjusted operating income (loss)
Adjusted operating margin %
Depreciation and amortization
Adjusted EBITDA
Adjusted EBITDA margin %
Noncash items:

Pension (income) expense

Total Assets
Capital expenditures

2021

Pension (income) expense

Total Assets
Capital expenditures

2020

Net sales to external customers
Operating income
Restructuring charges (Note 3)
Currency exchange losses, net (Note 6)
Product liability expense (Note 20)
Acquisition related costs(a) (Note 14)
COVID-19 related costs
Adjusted operating income (loss)
Adjusted operating margin %
Depreciation and amortization
Adjusted EBITDA
Adjusted EBITDA margin %
Noncash items:

Americas

International

Corporate

Reconciling
Items(1)

Consolidated
Totals

$ 1,043,238

$ 484,715

— $

267,392

60,923

(37,928)

— $ 1,527,953
239,137
7,965
10,255
20,590
12,440
290,387

25.6 %

12.6 %

34,334
301,726

12,256
73,179

28.9 %

15.1 %

$ (18,368)
1,660,776
33,324

$ 6,869
703,444
9,229

520
(37,408)

47,110
337,497

— $

11,673
—

1,083
—

(11,499)
2,376,976
42,553

$ 908,068

$ 492,114

— $

202,496

73,279

(35,198)

— $ 1,400,182
22,780
16,433
216
185,264
15,884
240,577

—

22.3 %

14.9 %

31,236
233,732

13,718
86,997

25.7 %

17.7 %

$ (2,916)
1,661,619
25,148

$ 5,790
720,257
11,408

463
(34,735)

—
—

45,417
285,994

— $

13,034
7,281

1,486
—

2,874
2,396,396
43,837

$ 874,305

$ 473,918

— $

205,304

71,140

(28,080)

— $ 1,348,223
171,895
27,381
8,578
39,036
717
757
248,364

—

23.5 %

15.0 %

26,762
232,066

12,521
83,661

26.5 %

17.7 %

391
(27,689)

—
—

39,674
288,038

Pension expense

Total Assets
Capital expenditures

$
910
1,273,302
43,181
(a)Acquisition related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred
during due diligence and integration. These costs are included in Selling, general and administrative expense in the
Consolidated Statements of Income. Acquisition-related costs also include the acquisition related amortization, which is
included in Cost of products sold in the Consolidated Statements of Income.
(1)Reconciling items consist primarily of intercompany eliminations and items not directly attributable to operating segments.

9,023
(1,130) 1,919,631
48,905

$ 8,113
617,698
5,724

29,761
—

— $

—

6983_FIN.pdf 55

Geographic information on Net sales to external customers, based on country of origin:

(In thousands)
United States

Other

Total

2022

2021

2020

876,945 $

746,825 $

750,315

651,008

653,357

597,908

$ 1,527,953 $ 1,400,182 $ 1,348,223

Geographic information on tangible long-lived assets, net, based on country of origin:

(In thousands)
United States

Other

Total

2022

2021

2020

159,345 $

155,667 $

134,234

92,349

102,304

108,837

251,694 $

257,971 $

243,071

Total Net sales by product group was as follows:

2022

(In thousands)

Breathing Apparatus
Fixed Gas & Flame Detection (a)
Firefighter Helmets & Protective Apparel (b)
Portable Gas Detection
Industrial Head Protection
Fall Protection
Other (c)
Total

2021

(In thousands)

Breathing Apparatus
Fixed Gas & Flame Detection (a)
Firefighter Helmets & Protective Apparel (b)
Portable Gas Detection
Industrial Head Protection
Fall Protection
Other (c)
Total

2020

(In thousands)

Breathing Apparatus
Fixed Gas & Flame Detection
Firefighter Helmets & Protective Apparel
Portable Gas Detection
Industrial Head Protection
Fall Protection
Other (c)
Total

Consolidated

Americas

International

Dollars
$ 371,176
356,075
207,759
173,660
163,253
110,094
145,936
$ 1,527,953

Percent
24%
23%
14%
11%
11%
7%
10%
100%

Dollars
$ 265,558
227,609
150,869
121,934
127,485
69,225
80,558
$ 1,043,238

Percent
25%
22%
14%
12%
12%
7%
8%
100%

Dollars
$ 105,618
128,466
56,890
51,726
35,768
40,869
65,378
$ 484,715

Percent
22%
27%
12%
11%
7%
8%
13%
100%

Consolidated

Americas

International

Dollars
$ 322,412
299,018
203,914
162,761
143,601
117,731
150,745
$ 1,400,182

Percent
23%
21%
15%
12%
10%
8%
11%
100%

Dollars
$ 217,340
182,515
137,086
109,543
108,869
69,108
83,607
$ 908,068

Percent
24%
20%
15%
12%
12%
8%
9%
100%

Dollars
$ 105,072
116,503
66,828
53,218
34,732
48,623
67,138
$ 492,114

Percent
21%
24%
14%
11%
7%
10%
13%
100%

Consolidated

Americas

International

Dollars
$ 329,179
287,414
162,207
142,581
125,921
103,075
197,846
$ 1,348,223

Percent
24%
21%
12%
11%
9%
8%
15%
100%

Dollars
$ 220,650
158,924
133,653
90,545
92,075
58,060
120,398
$ 874,305

Percent
25%
18%
15%
10%
11%
7%
14%
100%

Dollars
$ 108,529
128,490
28,554
52,036
33,846
45,015
77,448
$ 473,918

Percent
23%
27%
6%
11%
7%
10%
16%
100%

(a) Fixed Gas & Flame Detection include sales from the Bacharach acquisition from July 1, 2021 onward (Americas and
International).
(b) Firefighter Helmets & Protective Apparel include sales from the Bristol acquisition from January 25, 2021 onward
(International).
(c) Other products include sales of Air Purifying Respirators.

6983_FIN.pdf 56

Note 9—Earnings per Share

Basic earnings per share attributable to MSA Safety Incorporated common shareholders is computed by dividing net
income, after the deduction of preferred stock dividends and undistributed earnings allocated to participating securities, by the
weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MSA
Safety Incorporated common shareholders assumes the issuance of common stock for all potentially dilutive share equivalents
outstanding not classified as participating securities. Participating securities are defined as unvested stock-based payment
awards that contain nonforfeitable rights to dividends.

Amounts attributable to MSA Safety Incorporated common shareholders:
(In thousands, except per share amounts)
Net income

Preferred stock dividends

Net income available to common equity

Dividends and undistributed earnings allocated to participating securities

Net income available to common shareholders

Basic weighted-average shares outstanding

Stock options and other stock-based awards

Diluted weighted-average shares outstanding

Antidilutive stock options

Earnings per share:

Basic

Diluted

Note 10—Income Taxes

(In thousands)
Components of income before income taxes

U.S. income (loss)

Non-U.S. income

Income before income taxes

Provision for income taxes

Current

Federal

State

Non-U.S.

Total current provision

Deferred

Federal

State

Non-U.S.

Total deferred provision (benefit)

Provision for income taxes

2022

2021

2020

179,630 $

21,340 $

124,077

(41)

179,589

21,299

124,036

(30)

(24)

(84)

179,559 $

21,275 $

123,952

39,232

175

39,407

—

39,173

276

39,449

—

38,885

401

39,286

—

4.58 $

4.56 $

0.54 $

3.19

3.15

2022

2021

2020

170,426 $

(59,746) $

109,726

68,107

83,350

58,421

238,533 $

23,604 $

168,147

26,022 $

13,179 $

7,708
20,002

5,000
22,487

53,732 $

40,666 $

7,350 $

(29,631) $

862

(3,041)

(7,204)

(2,015)

5,171

(38,850)

23,587

4,896
16,780

45,263

(573)

(579)

(1,102)

(2,254)

58,903 $

1,816 $

43,009

On June 10, 2021 the United Kingdom ("U.K.") Parliament announced royal assent for Bill No. 12, on the Finance Act of

2021. This bill will increase the statutory rate from 19% to 25% in April 2023. The Company recorded this impact on its
deferred tax balances in the second quarter of 2021.

6983_FIN.pdf 57

Reconciliation of the U.S. federal income tax rates to our effective tax rate:

U.S. federal income tax rate

State income taxes-U.S.

Nondeductible compensation

Valuation allowances

Foreign exchange on entity closures

Taxes on non-U.S. income

Employee share-based payments

Research and development credit

Taxes on non-U.S. income - U.S., Canadian & European reorganization

Other
Effective income tax rate

Components of deferred tax assets and liabilities:

(In thousands)
Deferred tax assets

Product liability

Capitalized research and development

Net operating losses and tax credit carryforwards

Accrued expenses and other reserves

Share-based compensation

Other

Total deferred tax assets

Valuation allowances

Net deferred tax assets

Deferred tax liabilities

Goodwill and intangibles

Property, plant and equipment

Employee benefits

Inventory

Other

Total deferred tax liabilities

Net deferred taxes

2022

2021

2020

21.0 %

2.9 %

1.2 %

0.8 %

0.3 %

0.1 %

(0.8) %

(0.4) %

— %

(0.4) %

24.7 %

21.0 %

(7.0) %

15.3 %

7.0 %

(0.4) %

(10.9) %

(18.3) %

(5.3) %

— %

6.3 %

7.7 %

21.0 %

2.0 %

3.4 %

0.8 %

— %

2.6 %

(3.9) %

(1.2) %

0.7 %

0.2 %

25.6 %

December 31,

2022

2021

72,950 $

26,988

10,696

5,738

4,562

5,068

71,709

25,644

9,404

4,627

3,619

4,785

126,002

119,788

(10,017)

(8,812)

115,985

110,976

(80,383)

(79,285)

(18,735)

(17,088)

(18,899)

—

(8,985)
(1,264)

(4,359)
(122,376)

(2,434)
(109,056)

(6,391) $

1,920

At December 31, 2022, we had net operating loss carryforwards of approximately $49.0 million. All net operating loss

carryforwards without a valuation allowance may be carried forward for a period of at least six years.

6983_FIN.pdf 58

A reconciliation of the change in the tax liability for unrecognized tax benefits for the years ended December 31, 2022

and 2021 is as follows:

(In thousands)
Beginning balance

Adjustments for tax positions related to the current year

Adjustments for tax positions related to prior years

Settlements

Statute expiration

Ending balance

2022

2021

4,937 $

8,092

100

155

—

5,192 $

182

733

(3,211)

(859)

4,937

The total amount of unrecognized tax benefits, if recognized, would reduce our future effective tax rate. We have
recognized tax benefits associated with these liabilities in the amount of $2.7 million and $2.5 million at December 31, 2022
and 2021, respectively.

We recognize interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. Our

liability for accrued interest and penalties related to uncertain tax positions was $1.1 million and $0.8 million at December 31,
2022 and 2021, respectively.

We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax
positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts
recorded in our consolidated financial statements.

We file a U.S. federal income tax return along with various state and foreign income tax returns. Examinations of our

U.S. federal returns have been completed through 2018. Various state and foreign income tax returns may be subject to tax
audits for periods after 2015.

On August 16, 2022, President Biden signed the Inflation Reduction Act which includes a new minimum tax on certain

large corporations and an excise tax on stock buybacks. We do not anticipate this legislation will have a material impact for the
company.

Note 11—Stock Plans

The 2016 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible

employees through May 2026 including stock options, restricted stock awards, restricted stock units and performance stock
units. The 2017 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to
non-employee directors through May 2027. Stock options are granted at market prices and expire after ten years. Stock options
are exercisable beginning three years after the grant date. Restricted stock and restricted stock units are granted without
payment to the Company and generally vest three years after the grant date. Restricted stock and restricted stock units are
valued at the market value of the stock on the grant date. Performance stock units with a market condition are valued at an
estimated fair value using a Monte Carlo simulation model. The final number of shares to be issued for performance stock units
may range from zero to 240% of the target award based on achieving the specified performance targets over the performance
period and further range based upon the achieved market metric over the performance period. In general, unvested stock
options, restricted stock and performance stock units are forfeited if the participant’s employment with the Company terminates
for any reason other than retirement, death or disability. We issue Treasury shares for stock option exercises and grants of
restricted stock and performance stock. Please refer to Note 7—Capital Stock for further information regarding stock
compensation share issuance. As of December 31, 2022, there were 598,813 and 76,890 shares, respectively, reserved for future
grants under the management and non-employee directors’ equity incentive plans.

6983_FIN.pdf 59

Stock-based compensation expense was as follows:

(In thousands)
Restricted stock units

Stock options

Performance stock units

Total stock-compensation expense before income taxes

Income tax benefit

2022

2021

2020

6,488 $

5,797 $

6,258

13,113

19,650

4,814

13,030

18,908

4,633

113

549

6,920

1,668

5,252

Total stock-compensation expense, net of income tax benefit

14,836 $

14,275 $

We did not capitalize any stock-based compensation expense, and all expense is included in Selling, general and

administrative expense in the Consolidated Statements of Income.

A summary of option activity follows:

Outstanding January 1, 2020

Exercised

Forfeited

Outstanding December 31, 2020

Exercised

Forfeited

Outstanding December 31, 2021

Exercised

Outstanding December 31, 2022

Weighted
Average
Exercise Price

Exercisable at
Year-end

559,656 $

(274,704)

(954)

283,998

(122,087)

(210)

161,701

(103,545)

58,156 $

45.78

45.31

42.00

46.23

47.25

43.75

45.47

44.91

46.48

281,593

161,347

58,156

For various exercise price ranges, characteristics of outstanding and exercisable stock options at December 31, 2022 were

as follows:

Range of Exercise Prices
$33.01 – $45.00

$45.01 – $57.93

$33.01 – $57.93

Range of Exercise Prices
$33.01 – $45.00

$45.01 – $57.93

$33.01 – $57.93

Stock Options Outstanding

Weighted-Average

Exercise Price

Remaining Life

33,148 $

25,008
58,156 $

44.50

49.10
46.48

2.41

2.21
2.32

Stock Options Exercisable

Weighted-Average

Exercise Price

Remaining Life

33,148 $

25,008

58,156 $

44.50

49.10

46.48

2.41

2.21

2.32

Cash received from the exercise of stock options was $4.7 million, $5.8 million and $12.4 million for the years ended

December 31, 2022, 2021 and 2020, respectively. The tax benefit we realized from these exercises was $1.9 million, $4.3
million and $6.4 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Stock options become exercisable when they are vested. The aggregate intrinsic value of stock options exercisable and

outstanding at December 31, 2022 was $5.7 million.

6983_FIN.pdf 60

Restricted stock awards and restricted stock units are valued at the market value of the stock on the grant date. A

summary of restricted stock unit activity follows:

Unvested January 1, 2020

Granted

Vested

Forfeited

Unvested at December 31, 2020

Granted

Vested

Forfeited

Unvested at December 31, 2021

Granted

Vested

Forfeited

Unvested at December 31, 2022

A summary of performance stock unit activity follows:

Unvested at January 1, 2020

Granted

Vested

Performance adjustments

Forfeited

Unvested at December 31, 2020

Granted

Vested

Performance adjustments

Unvested at December 31, 2021

Granted

Vested

Performance adjustments

Forfeited

Unvested at December 31, 2022

Weighted Average
Grant Date
Fair Value

172,701 $

51,468

(70,399)

(7,579)

146,191

43,146

(65,225)

(5,769)

118,343

87,697

(51,369)

(8,785)

145,886 $

90.38

124.61

81.58

106.54

105.83

167.13

95.43

132.54

132.62

130.28

113.96

139.66

137.36

Weighted Average
Grant Date
Fair Value

238,035 $

67,479

(132,036)

33,499

(6,765)

200,212

52,309

(64,543)

5,357

193,335
81,504
(55,447)

(22,147)

(18,485)

178,760 $

85.39

127.48

73.00

72.36

111.60

104.69

175.59

85.41

88.45

129.86
142.38
101.38

99.84

147.66

146.28

The 2022 performance adjustments above relate primarily to 2019 performance unit awards that were below the
performance targets when vested during 2022, including the final number of shares issued, which were 64.2% of the target
award based on actual results during the three year performance period.

During the years ended December 31, 2022, 2021 and 2020, the total intrinsic value of stock options exercised (the
difference between the market price on the date of exercise and the option price paid to exercise the option) was $8.6 million,
$13.0 million and $24.6 million, respectively. The fair values of restricted stock vested during the years ended December 31,
2022, 2021 and 2020 were $5.9 million, $6.2 million and $5.7 million, respectively. The fair value of performance stock units
vested during the years ended December 31, 2022, 2021 and 2020 was $5.6 million, $5.5 million and $9.6 million, respectively.

On December 31, 2022, there was $16.4 million of unrecognized stock-based compensation expense. The weighted

average period over which this expense is expected to be recognized was approximately 1.8 years.

6983_FIN.pdf 61

Note 12—Long-Term Debt

Long-Term Debt

(In thousands)

2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs
2021 Senior Notes payable through 2036, 2.69%, net of debt issuance costs

2021 Senior Notes payable through 2036, 2.69%, net of debt issuance costs

Senior revolving credit facility maturing in 2026, net of debt issuance costs

Total

Amounts due within one year

Long-term debt, net of debt issuance costs

December 31,

2022

2021

66,379 $

99,711

307,031

572,832

7,387

74,203

99,694

324,060

597,651

—

565,445 $

597,651

On May 24, 2021, the Company entered into a Fourth Amended and Restated Credit Agreement (the “Revolving Credit
Facility" or "Facility”) that extended its term through May 24, 2026 and increased the capacity to $900.0 million. Under the
amended agreement, the Company may elect either a Base rate of interest (“BASE”) or an interest rate based on the London
Interbank Offered Rate (“LIBOR”). The BASE is a daily fluctuating per annum rate equal to the highest of (i) 0.00%, (ii) the
Prime Rate, (iii) the Federal Funds Open Rate plus one half of one percent (0.5%), (iv) the Overnight Bank Funding Rate, plus
one half of one percent (0.5%), or (v) the Daily LIBOR Rate plus one percent (1.00%). The Company pays a credit spread of 0
to 175 basis points based on the Company’s net EBITDA leverage ratio and elected rate (BASE or LIBOR). The Company has
a weighted average revolver interest rate of 5.13% as of December 31, 2022. At December 31, 2022, $589.9 million of the
existing $900.0 million senior revolving credit facility was unused, including letters of credit issued under the facility. The
facility also provides an accordion feature that allows the Company to access an additional $400.0 million of capacity pending
approval by MSA’s board of directors and from the bank group.

On July 1, 2021, the Company entered into a Third Amended and Restated Multi-Currency Note Purchase and Private
Shelf Agreement (the “Prudential Note Agreement”) with PGIM, Inc. (“Prudential”). The Prudential Note Agreement provided
for (i) the issuance of $100.0 million of 2.69% Series C Senior Notes due July 1, 2036 and (ii) the establishment of an
uncommitted note issuance facility whereby the Company may request, subject to Prudential’s acceptance in its sole discretion,
the issuance of up to $335.0 million aggregate principal amount of senior unsecured notes. As of December 31, 2022, the
Company had issued £54.9 million (approximately $66.5 million at December 31, 2022) of 3.4% Series B Senior Notes due
January 22, 2031.

On July 1, 2021, the Company entered into a Second Amended and Restated Master Note Facility (the “NYL Note
Facility”) with NYL Investors. The NYL Note Facility provided for (i) the issuance of $100.0 million of 2.69% Series A
Senior Notes due July 1, 2036 and (ii) the establishment of an uncommitted note issuance facility whereby the Company may
request, subject to NYL Investors’ acceptance in its sole discretion, the issuance of up to $200.0 million aggregate principal
amount of senior unsecured notes.

The Revolving Credit Facility, Prudential Note Agreement and NYL Note Facility require the Company to comply with

specified financial covenants, including a requirement to maintain a minimum fixed charges coverage ratio of not less than 1.50
to 1.00 and a consolidated leverage ratio not to exceed 3.50 to 1.00; except during an acquisition period, defined as four
consecutive fiscal quarters beginning with the quarter of acquisition, in which case the consolidated net leverage ratio shall not
exceed 4.00 to 1.00; in each case calculated on the basis of the trailing four fiscal quarters. In addition, the agreements contain
negative covenants limiting the ability of the Company and its subsidiaries to incur additional indebtedness or issue guarantees,
create or incur liens, make loans and investments, make acquisitions, transfer or sell assets, enter into transactions with
affiliated parties, make changes in its organizational documents that are materially adverse to lenders or modify the nature of
the Company's or its subsidiaries' business. All credit facilities exclude the subsidiary, Mine Safety Appliances Company,
LLC.

On July 1, 2021, the Company acquired Bacharach in a transaction valued at $329.4 million, net of cash acquired. The
acquisition was partially financed by $200.0 million of 2.69% Senior Notes from the Prudential Note Agreement and NYL Note
Facility. The remaining purchase price was financed under the Revolving Credit Facility.

6983_FIN.pdf 62

During August 2021, the Company amended its Revolving Credit Facility to transition from Sterling LIBOR reference

rates to Sterling Overnight Interbank Average Rate ("SONIA") reference rates. The Company will apply the optional
expedients in ASC 848, Reference Rate Reform, to this modification and potential future modifications driven by reference rate
reform, accounting for the modifications as a continuation of the existing contracts. Therefore, these modifications will not
require remeasurement at the modification date or a reassessment of previous accounting determinations. As such, the
Company does not anticipate the change in reference rates will have an impact on the Company’s consolidated financial
statements. Management continues to evaluate the Company’s other outstanding U.S. LIBOR based contracts to determine
whether reference rate modifications are necessary.

As of December 31, 2022, MSA was in full compliance with the restrictive covenants under its various credit agreements.

Approximate maturities on our long-term debt over the next five years are $7.4 million in 2023, $7.4 million in 2024,

$7.4 million in 2025, $316.0 million in 2026, $7.4 million in 2027 and $229.6 million thereafter.

The Company had outstanding bank guarantees and standby letters of credit with banks as of December 31, 2022, totaling

$9.3 million, of which $1.5 million relate to the senior revolving credit facility. The letters of credit serve to cover customer
requirements in connection with certain sales orders and insurance companies. The Company is also required to provide cash
collateral in connection with certain arrangements. At December 31, 2022, the Company has $1.5 million of restricted cash in
support of these arrangements.

In January 2023, we entered into a new $250 million term loan and $65 million was drawn down from our revolving
credit facility to fund the divestiture of MSA LLC, a wholly owned subsidiary that holds legacy product liability claims relating
to coal dust, asbestos, silica, and other exposures. Please refer to Note 20—Contingencies for additional information.

Note 13—Goodwill and Intangible Assets

Changes in goodwill during the years ended December 31, 2022 and 2021, were as follows:

(In thousands)
Balance at January 1, 2022

Additions

Measurement period adjustment

Currency translation

Balance at December 31. 2022

2022

2021

636,858 $

443,272

—

199,454

(1,041)

—

(15,195)

(5,868)

620,622 $

636,858

At December 31, 2022, goodwill of $447.6 million and $173.0 million related to the Americas and International

reportable segments, respectively.

Changes in intangible assets, net of accumulated amortization, during the years ended December 31, 2022 and 2021, were

as follows:

(In thousands)
Net balance at January 1, 2022

Additions

Amortization expense

Currency translation

Net balance at December 31, 2022

2022

2021

306,948 $

161,051

—

164,426

(19,137)

(16,814)

(5,958)

(1,715)

281,853 $

306,948

6983_FIN.pdf 63

(In millions)

December 31, 2022

December 31, 2021

Intangible Assets:
Customer relationships

Distribution agreements

Technology related assets
Patents, trademarks and
copyrights
License agreements

Other
Total

Weighted Average
Useful Life (years)

Gross
Carrying
Amount

Accumulated
Amortization
and Reserves

Net
Carrying
Amount

Gross
Carrying
Amount

Accumulated
Amortization
and Reserves

Net
Carrying
Amount

$ 178.7 $

(35.3) $ 143.4 $ 185.7 $

(27.9) $ 157.8

65.8

49.5

34.0

5.4

3.3

$ 336.7 $

(26.9)

(29.3)

(14.8)

(5.3)

38.9

20.2

19.2

0.1

66.1

50.4

35.2

5.4

(3.2)

0.1
(114.8) $ 221.9 $ 346.1 $

3.3

(23.8)

(25.5)

(13.6)

(5.3)

42.3

24.9

21.6

0.1

(3.0)
0.3
(99.1) $ 247.0

At December 31, 2022, the above intangible assets balance includes a trade name related to the Globe acquisition with an

indefinite life totaling $60.0 million.

Intangible asset amortization expense over the next five years is expected to be approximately $18.0 million in both 2023

and 2024 and $17.1 million annually from 2025 to 2027.

Note 14—Acquisitions

Acquisition of Bacharach

On July 1, 2021, we acquired 100% of the common stock of Bacharach in an all cash transaction valued at $329.4 million,

net of cash acquired.

Headquartered near Pittsburgh in New Kensington, PA, Bacharach is a leader in gas detection technologies used in the

heating, ventilation, air conditioning, and refrigeration ("HVAC-R") markets. This acquisition expanded MSA’s gas detection
portfolio and leverages MSA’s product and manufacturing expertise into new markets.

Bacharach's operating results are included in our consolidated financial statements from the acquisition date within the

Americas, International and Corporate reportable segments. The acquisition qualified as a business combination and was
accounted for using the acquisition method of accounting.

The following table summarizes the fair values of the Bacharach assets acquired and liabilities assumed at the date of the

acquisition:

(In millions)

Current assets (including cash of $11.7 million)

Property, plant and equipment and other noncurrent assets

Customer relationships

Developed technology

Trade name

Goodwill

Total assets acquired

Total liabilities assumed

Net assets acquired

July 1, 2021

32.1

4.3

123.0

20.5

15.0

193.5

388.4

(47.3)

341.1

6983_FIN.pdf 64

Assets acquired and liabilities assumed in connection with the acquisition were recorded at fair values. Fair values were

determined by management, based in part on an independent valuation performed by a third party valuation specialist. The
valuation methods used to determine the fair value of intangible assets included the excess earnings approach for customer
relationships using customer inputs and contributory charges; the relief from royalty method for trade name and developed
technologies; and the cost method for assembled workforce was included in goodwill. A number of significant assumptions
and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices,
royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow
forecasts were generally based on Bacharach pre-acquisition forecasts, coupled with estimated MSA sales synergies.
Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer
relationships, developed technology and trade name acquired in the Bacharach transaction are being amortized over periods of
21 years, 7 to 9 years and 20 years, respectively. The step up to fair value of acquired inventory as part of the purchase price
allocation totaled $2.3 million. The amortization of the inventory step up was included in Cost of products sold in the
Consolidated Statements of Income for the year ended December 31, 2021.

Goodwill is calculated as the excess of the purchase price over the fair value of net assets acquired and represents the
future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.
Among the factors that contributed to a purchase price in excess of the fair value of the net tangible and intangible assets
acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result
from combining the operations of Bacharach with our operations. Goodwill of $193.5 million related to the Bacharach
acquisition was recorded, with $154.6 million and $38.9 million allocated to the Americas reportable segment and International
reportable segment, respectively. This Goodwill is non-deductible for tax purposes.

Acquisition of Bristol Uniforms and Bell Apparel

On January 25, 2021, we acquired 100% of the common stock of B T Q Limited, including Bristol in an all-cash

transaction valued at $63.0 million, net of cash acquired.

Bristol, which is headquartered in the U.K., is a leading innovator and provider of protective apparel to the fire, rescue

services, and utility sectors. The acquisition strengthens MSA's position as a global market leader in fire service personal
protective equipment products, which include breathing apparatus, firefighter helmets, thermal imaging cameras, and firefighter
protective apparel, while providing an avenue to expand its business in the U.K. and key European markets. Bristol is also a
leading manufacturer of flame-retardant, waterproof, and other protective work wear for the utility industry. Marketed under
the Bell Apparel brand, this line complements MSA's existing and broad range of offerings for the global utilities market.

Bristol's operating results are included in our consolidated financial statements from the acquisition date as part of the

International reportable segment. The acquisition qualified as a business combination and was accounted for using the
acquisition method of accounting.

The following table summarizes the fair values of the Bristol assets acquired and liabilities assumed at the date of the

acquisition:

(In millions)

Current assets (including cash of $13.3 million)

Net investment in sales-type leases, noncurrent

Property, plant and equipment and other noncurrent assets

Customer relationships

Trade name and other intangible assets

Goodwill

Total assets acquired

Total liabilities assumed

Net assets acquired

January 25, 2021

37.1

29.0

12.0

4.5

1.4

4.9

88.9

(12.6)

76.3

6983_FIN.pdf 65

Assets acquired and liabilities assumed in connection with the acquisition were recorded at fair values. Fair values were

determined by management, based in part on an independent valuation performed by a third party valuation specialist. The
valuation methods used to determine the fair value of intangible assets included the excess earnings approach for customer
relationships using customer inputs and contributory charges; the relief from royalty method for trade name; and the cost
method for assembled workforce which is included in goodwill. A number of significant assumptions and estimates were
involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to
produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were
generally based on Bristol pre-acquisition forecasts, coupled with estimated MSA sales synergies. Identifiable intangible assets
with finite lives are subject to amortization over their estimated useful lives. The customer relationships and trade name
acquired in the Bristol transaction will be amortized over a period of 15 years. The step up to fair value of acquired inventory
as part of the purchase price allocation totaled $1.5 million. The amortization of the inventory step up was included in Cost of
products sold in the Consolidated Statements of Income for the year ended December 31, 2021.

Goodwill is calculated as the excess of the purchase price over the fair value of net assets acquired and represents the
future economic benefits arising from other assets acquired that could not be individually identified and separately recognized.
Among the factors that contributed to a purchase price in excess of the fair value of the net tangible and intangible assets
acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result
from combining the operations of Bristol with our operations. Goodwill of $4.9 million related to the Bristol acquisition has
been recorded in the International reportable segment and is non-deductible for tax purposes.

The operating results of the Bristol and Bacharach acquisitions have been included in our consolidated financial
statements from their respective acquisition dates. Our results for the year ended December 31, 2021, include combined net
sales and net loss of $67.2 million and $6.3 million, respectively.

The following unaudited pro forma information presents our combined results as if the Bristol and Bacharach acquisitions
had occurred at the beginning of 2020. The unaudited pro forma financial information was prepared to give effect to events that
are (1) directly attributable to the acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the
combined company's results. There were no material transactions between MSA and Bristol or Bacharach during the periods
presented that are required to be eliminated. The unaudited pro forma combined financial information does not reflect cost
savings, operating synergies or revenue enhancements that the combined companies may achieve or the costs to integrate the
operations or the costs necessary to achieve cost savings, operating synergies or revenue enhancements.

Pro forma combined financial information (Unaudited)

(In millions, except per share amounts)

Net sales

Net income

Basic earnings per share
Diluted earnings per share

Year Ended December 31,

2021

2020

1,437.9 $

10.2

0.26
0.26

1,470.4

114.6

2.94
2.91

The unaudited pro forma combined financial information is presented for information purposes only and is not intended to

represent or be indicative of the combined results of operations or financial position that we would have reported had the
acquisition been completed as of the date and for the periods presented, and should not be taken as representative of our
consolidated results of operations or financial condition following the acquisition. In addition, the unaudited pro forma
combined financial information is not intended to project the future results of the combined company.

The unaudited pro forma combined financial information was prepared using the acquisition method of accounting under

existing U.S. GAAP. MSA has been treated as the acquirer.

Total acquisition related costs were $12.4 million, $15.9 million and $0.7 million for the years ended December 31, 2022,

2021 and 2020, respectively. Transactional costs are included in Selling, general and administrative expenses and acquisition-
related amortization is included in Cost of products sold in the Consolidated Statements of Income.

6983_FIN.pdf 66

Acquisition of Noncontrolling Interest

During July 2021, the Company purchased the remaining 10% noncontrolling interest in MSA (China) Safety Equipment

Co., Ltd. from our partner in China for $19.0 million, inclusive of a $5.6 million distribution.

Note 15—Pensions and Other Post-retirement Benefits

We maintain various defined benefit and defined contribution plans covering the majority of our employees. Our
principal U.S. plan is funded in compliance with the Employee Retirement Income Security Act ("ERISA"). It is our general
policy to fund current costs for the international plans, except in Germany and Mexico, where it is common practice and
permissible under tax laws to maintain an unfunded liability.

We provide health care benefits and limited life insurance for certain retired employees who are covered by our principal

U.S. defined benefit pension plan until they become Medicare-eligible.

6983_FIN.pdf 67

Defined benefit pension plan and other post-retirement benefits plan information is provided in the following tables:

(In thousands)
Change in Benefit Obligations

Benefit obligations at January 1
Service cost
Interest cost
Participant contributions
Plan amendments
Actuarial gains(a)
Benefits paid
Curtailments
Settlements
Transfers(b)
Acquisitions
Currency translation
Benefit obligations at December 31

Change in Plan Assets

Fair value of plan assets at January 1
Actual return on plan assets
Employer contributions
Participant contributions
Acquisitions
Settlements
Benefits paid
Transfers(b)
Administrative expenses paid
Currency translation
Fair value of plan assets at December 31

Funded Status

Funded status at December 31
Unrecognized prior service credit (cost)
Unrecognized net actuarial losses
Net amount recognized

Amounts Recognized in the Balance Sheets

Noncurrent assets
Current liabilities
Noncurrent liabilities
Net amount recognized

Amounts Recognized in Accumulated Other Comprehensive Loss

Pension Benefits

Other Benefits

2022

2021

2022

2021

$ 654,362 $ 670,857 $

12,281
14,377
257
154

12,910
11,518
287
(243)
(10,277)
(25,117)
(439)
(3,190)
(19,312)
26,231
(8,863)
$ 490,365 $ 654,362 $

(156,214)
(26,377)
(286)
(260)
—
—
(7,929)

$ 651,986 $ 586,822 $

(115,105)
5,032
257
—
(260)
(26,377)

80,366
5,543
287
25,476
(1,365)
(25,117)
(19,312)
(67)
(647)
$ 514,218 $ 651,986 $

—
(54)
(1,261)

29,831 $
327
590
259
—
(5,884)
(2,585)
—
—
—
—
—
22,538 $

— $
—
2,326
259
—
—
(2,585)
—
—
—
— $

32,225
398
476
345
—
(1,518)
(3,021)
—
—
—
926
—
29,831

—
—
2,676
345
—
—
(3,021)
—
—
—
—

23,853 $
1,224
90,212
$ 115,289 $

(2,376) $
1,186
95,674
94,484 $

(22,538) $
(429)
6,445
(16,522) $

(29,831)
(767)
13,570
(17,028)

$ 141,643 $ 163,283 $
(6,569)
(159,090)
(2,376) $

(3,712)
(114,078)
23,853 $

— $
(2,226)
(20,312)
(22,538) $

—
(2,739)
(27,092)
(29,831)

Net actuarial losses
Prior service cost (credit)
Total (before tax effects)

13,570
(767)
12,803
Accumulated Benefit Obligations for all Defined Benefit Plans
—
(a)Actuarial gains for both periods relate primarily to the increase/decrease in discount rates used in measuring plan obligations
as of December 31, 2022 and 2021, respectively.
(b)Transfers consist of Netherlands defined benefit plan conversion to a defined contribution plan.

95,674 $
1,186
$
96,860 $
$ 459,630 $ 608,436 $

6,445 $
(429)
6,016 $
— $

90,212 $
1,224
91,436 $

6983_FIN.pdf 68

(In thousands)
Components of Net Periodic Benefit
(Income) Cost
Service cost

Interest cost

Expected return on plan assets

Amortization of prior service cost (credit)

Recognized net actuarial losses

Settlement/curtailment (gain) loss
Net periodic benefit (income) cost(a)

Pension Benefits

Other Benefits

2022

2021

2020

2022

2021

2020

$ 12,281 $ 12,910

$ 12,094

327 $

398 $

14,377

11,518

(49,646)

(37,368)

139

11,704

(354)

164

17,458
(2,234) (b)
2,448

14,905

(34,029)

178

15,799
1,135 (b)

396

716

—

590

—

476

—

(338)

(358)

(394)

1,242

1,597

1,145

—

$ (11,499) $

$ 1,821 $ 2,113 $ 1,863
(a) Components of net periodic benefit (income) cost other than service cost are included in the line item Other income, net, and
service costs are included in the line items Cost of products sold and Selling, general and administrative in the Consolidated
Statements of Income.
(b) Relates primarily to the conversion of our Netherlands pension plan into a defined contribution plan and is included in
"Restructuring charges" in the Consolidated Statements of Income.

$ 10,082

The Company utilizes a spot rate approach, which discounts the individual plan specific expected cash flows underlying
the service and interest cost using the applicable spot rates derived from a yield curve used in the determination of the benefit
obligation to the relevant projected cash flows. For plans where the discount rate is not derived from plan specific expected cash
flows, the Company uses a single weighted-average discount rate derived from the yield curve used to measure the projected
benefit obligation at the beginning of the period for measuring both the projected benefit obligations and the service and interest
cost components of net periodic benefit cost for pension and other post-retirement benefits.

Information for pension plans with an accumulated benefit obligation in excess of plan assets:

(In thousands)
Aggregate accumulated benefit obligations (ABO)

Aggregate fair value of plan assets

Pension Benefits

2022

2021

116,531 $

4,454

181,511

22,265

Information for pension plans with a projected benefit obligation in excess of plan assets:

(In thousands)
Aggregate projected benefit obligations (PBO)

Aggregate fair value of plan assets

Assumptions used to determine benefit obligations

Average discount rate

Rate of compensation increase

Assumptions used to determine net periodic benefit cost

Average discount rate - Service cost

Average discount rate - Interest cost

Expected return on plan assets

Rate of compensation increase

Pension Benefits

2022

2021

122,229 $
4,454

187,924
22,265

Pension Benefits

Other Benefits

2022

2021

2022

2021

5.01 %

4.61 %

3.12 %

2.17 %

8.77 %

4.58 %

2.70 %

4.58 %

2.80 %

1.69 %

5.09 %

3.00 %

2.84 %

2.04 %

7.13 %

—

2.66 %

2.91 %

2.42 %

1.48 %

—

2.90 %

2.91 %

3.00 %

Discount rates for all U.S. and foreign plans were determined using the aforementioned spot rate methodology for 2022

and 2021. Aside from sovereign bonds used in Mexico, the remaining plans' discount rates were determined using various
corporate bonds and by matching our projected benefit obligation payment stream to current yields on high quality bonds.

6983_FIN.pdf 69

The expected return on assets for the 2022 net periodic pension cost was determined by multiplying the expected returns
of each asset class (based on capital market expectations) by the expected percentage of the total portfolio invested in that asset
class. A total return was determined by summing the expected returns over all asset classes.

Equity securities

Fixed income securities

Pooled investment funds

Cash and cash equivalents

Insurance contracts

Total

Pension Plan Assets at
December 31,

2022

2021

56 %

51 %

100 %

The overall objective of our pension investment strategy is to earn a rate of return over time to satisfy the benefit
obligations of the pension plans and to maintain sufficient liquidity to pay benefits and meet other cash requirements of our
pension funds. Investment policies for our primary U.S. pension plan are determined by the plan’s Investment Committee and
set forth in the plan’s investment policy. Asset managers are granted discretion for determining sector mix, selecting securities
and timing transactions, subject to the guidelines of the investment policy. An aggressive, flexible management of the portfolio
is permitted and encouraged, with shifts of emphasis among equities, fixed income securities and cash equivalents at the
discretion of each manager. No target asset allocations are set forth in the investment policy. For our non-U.S. pension plans,
our investment objective is generally met through the use of pooled investment funds and insurance contracts.

The fair values of the Company's pension plan assets are determined using NAV as a practical expedient, or by

information categorized in the fair value hierarchy level based on the inputs used to determine fair value, as further discussed in
Note 19—Fair Value Measurements.

The fair values at December 31, 2022, were as follows:

(In thousands)
Equity securities

Fixed income securities

Pooled investment funds

Cash and cash equivalents

Insurance contracts

Total

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

Fair Value

Significant
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Total

NAV

288,006 $

44,583 $

243,423 $

— $

132,659

79,853

9,246
4,454
514,218 $

—

79,853

7,954
—
132,390 $

63,522

—

1,292
—
308,237 $

69,137

—

—
—
69,137 $

—

—
4,454
4,454

The fair values of the Company's pension plan assets at December 31, 2021, were as follows:

(In thousands)
Equity securities

Fixed income securities

Pooled investment funds

Cash and cash equivalents

Insurance contracts
Total

Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)

Fair Value

Significant
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

Total

NAV

329,795 $

66,897 $

262,898 $

— $

161,965

146,081

9,934

4,211

—

146,081

8,637

—

86,543

—

1,297

—

75,422

—

651,986 $

221,615 $

350,738 $

75,422 $

—

4,211

6983_FIN.pdf 70

Equity securities consist primarily of publicly traded U.S. and non-U.S. common stocks. Equities are valued at closing

prices reported on the listing stock exchange.

Fixed income securities consist primarily of U.S. government and agency bonds and U.S. corporate bonds. Fixed income
securities are valued at closing prices reported in active markets or based on yields currently available on comparable securities
of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the bond is valued
under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, and may
include adjustments, for certain risks that may not be observable, such as credit and liquidity risks.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is
significant to the fair value measurement. Pooled investment funds consist of mutual and collective investment funds that
invest primarily in publicly traded equity and fixed income securities. Pooled investment funds are valued using the NAV
provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus
its liabilities, divided by the number of shares outstanding. The underlying securities are generally valued at closing prices
reported in active markets, quoted prices of similar securities, or discounted cash flows approach that maximizes observable
inputs such as current value measurement at the reporting date. These investments are not classified in the fair value hierarchy
in accordance with guidance in ASU 2015-07.

Insurance contracts are valued in accordance with the terms of the applicable collective pension contract. The fair value
of the plan assets equals the discounted value of the expected cash flows of the accrued pensions which are guaranteed by the
counterparty insurer.

Cash equivalents consist primarily of money market and similar temporary investment funds. Cash equivalents are

valued at closing prices reported in active markets.

The preceding methods may produce fair value measurements that are not indicative of net realizable value or reflective
of future fair values. Although we believe the valuation methods are appropriate and consistent with other market participants,
the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a
different fair value measurement at the reporting date.

The following table presents a reconciliation of Level 3 assets:

(In thousands)
Balance January 1, 2021

Net realized and unrealized gains

Net purchases, issuances and settlements

Balance December 31, 2021

Net realized and unrealized gains

Net purchases, issuances and settlements

Balance December 31, 2022

Insurance
Contracts

24,396

(881)

(19,304)

4,211

(119)

362
4,454

The following table presents amounts related to Level 3 assets recognized in accumulated other comprehensive loss:

(In thousands)
Net actuarial losses

Prior service cost

Total (before tax effects)

Insurance
Contracts

(1,781)

744

(1,037)

We expect to make net contributions of $8.2 million to our pension plans in 2023, which are primarily associated with

statutorily required plans in the International reporting segment.

For the 2022 beginning of the year measurement purposes (net periodic benefit expense), a 5.9% increase in the costs of
covered health care benefits was assumed, decreasing by 0.2% for each successive year to 4.5% in 2030 and thereafter. For the
2022 end of the year measurement purposes (benefit obligation), a 6.5% increase in the costs of covered health care benefits
was assumed, decreasing by approximately 0.2% for each successive year to 4.4% in 2032 and thereafter.

6983_FIN.pdf 71

Expense for defined contribution pension plans was $12.6 million in 2022, $11.7 million in 2021 and $10.6 million in

2020.

Estimated pension benefits to be paid under our defined benefit pension plans during the next five years are $30.2 million

in 2023, $29.6 million in 2024, $30.7 million in 2025, $31.1 million in 2026 and $31.5 million in 2027, and an aggregated
$164.3 million for the five years thereafter. Estimated other post-retirement benefits to be paid during the next five years are
$2.2 million in 2023, $2.2 million in 2024, $2.0 million in 2025, $1.9 million in 2026, $2.0 million in 2027, and an aggregated
$9.5 million for the five years thereafter.

Note 16—Other Income, Net

(In thousands)
Components of net periodic benefit (income) cost other than service cost (Note 15) $
Interest income

Loss on asset write-down and dispositions, net

Other, net

Total other income, net

Year ended December 31,

2022

2021

2020

22,286 $

8,321 $

4,155

3,256

(6,290)

(788)

905

793

1,680

3,498

(236)

742

21,056 $

11,582 $

5,684

During the years ended December 31, 2022, 2021 and 2020, we recognized $4.2 million, $3.3 million and $3.5 million of

other income, respectively, related to interest earned on cash balances, short-term investments and notes receivable from
insurance companies. The short-term investments and notes receivables from insurance companies were divested as of January
5, 2023. Please refer to Note 20—Contingencies for further discussion on the Company's notes receivables from insurance
companies.

6983_FIN.pdf 72

Note 17—Leases

As a lessee, we have various operating lease agreements primarily related to real estate, vehicles and office and plant

equipment. The components of lease expense were as follows:

(In thousands, except percentage and year amounts)
Lease cost:

Operating lease cost recognized as rent expense

Total lease cost

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows related to operating leases

Non-cash other information:

Right-of-use assets obtained in exchange for new operating lease liabilities

Right-of-use assets obtained in acquisitions

Weighted-average remaining lease term (in years):

Operating leases

Weighted-average discount rate:

Operating leases

Year Ended December 31,

2022

2021

14,970

14,230

Other Information

14,906

14,440

6,418

—

21,857

4,795

December 31,

2022

2021

2.66 %

2.49 %

Rent expense was $15.0 million, $14.2 million and $13.0 million in 2022, 2021 and 2020, respectively. We did not have

any lease transactions with related parties. We did not have any significant leases not yet commenced.

At December 31, 2022, future lease payments under operating leases were as follows:

(In thousands)

2023

2024

2025
2026

2027

After 2027

Operating Leases

Less: Imputed interest

Present value of operating lease liabilities
Less: Current portion operating lease liabilities(a)
Noncurrent operating lease liabilities
(a) Included in Accrued restructuring and other current liabilities on the Consolidated Balance Sheets.

10,043

7,480

5,200
4,061

3,428

22,031

52,243

7,938

44,305

8,960

35,345

6983_FIN.pdf 73

Note 18—Derivative Financial Instruments

As part of our currency exchange rate risk management strategy, we enter into certain derivative foreign currency

forward contracts that do not meet the U.S. GAAP criteria for hedge accounting but have the impact of partially offsetting
certain foreign currency exposures. We account for these forward contracts at fair value and report the related gains or losses in
currency exchange losses, net, in the Consolidated Statements of Income. At December 31, 2022, the notional amount of open
forward contracts was $103.0 million and there were no unrealized gains/losses on these contracts. All open forward contracts
will mature during the first quarter of 2023.

The following table presents the Consolidated Balance Sheets location and fair value of assets and liabilities associated

with derivative financial instruments:

(In thousands)
Derivatives not designated as hedging instruments:

December 31,

2022

2021

Foreign exchange contracts: prepaid expenses and other current assets

Foreign exchange contracts: accrued restructuring and other current liabilities

724 $

85 $

619

128

The following table presents the Consolidated Statements of Income and Consolidated Statements of Cash Flows location

and impact of derivative financial instruments:

Year ended
December 31,

2022

2021

Derivatives not designated as hedging instruments:

Foreign exchange contracts: currency exchange losses, net

6,656 $

5,107

Note 19—Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels, which
gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest
priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are:

Level 1—Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either

directly or indirectly.

Level 3—Unobservable inputs for the asset or liability.

The valuation methodologies we used to measure financial assets and liabilities were limited to the pension plan assets

and the derivative financial instruments described in Note 15—Pensions and Other Post-retirement Benefits and Note 18—
Derivative Financial Instruments, respectively. See Note 15 for the fair value hierarchy classification of pension plan assets.
We estimate the fair value of the derivative financial instruments, consisting of foreign currency forward contracts, based upon
valuation models with inputs that generally can be verified by observable market conditions and do not involve significant
management judgment. Accordingly, the fair values of the derivative financial instruments are classified within Level 2 of the
fair value hierarchy. With the exception of our investments in marketable securities and fixed rate long-term debt both as
disclosed below, we believe that the reported carrying amounts of our remaining financial assets and liabilities approximate
their fair values.

6983_FIN.pdf 74

We value our investments in available-for-sale marketable securities, primarily fixed income, at fair value using quoted

market prices for similar securities or pricing models. Accordingly, the fair values of the investments are classified within
Level 2 of the fair value hierarchy. The amortized cost basis of our investments was $9.9 million and $49.0 million as of
December 31, 2022, and 2021, respectively. The fair value of our investments was $9.9 million and $49.0 million as of
December 31, 2022, and 2021, respectively, which was reported in Investments, short-term in the accompanying Consolidated
Balance Sheets. The change in fair value is recorded in other comprehensive income, net of tax. The Company does not intend
to sell, nor is it more likely than not that we will be required to sell, these securities prior to recovery of their cost. As such,
management believes that any unrealized gains or losses are temporary and to the extent that unrealized losses are present,
management has not identified such losses to be other than temporary in nature. Accordingly, no impairment gains or losses
relating to these securities have been recognized. All investments in marketable securities have maturities of one year or less
and are currently in an unrealized loss position as of December 31, 2022.

The reported carrying amount of fixed rate long-term debt, including the current portion of long-term debt, was $266.5
million and $274.3 million at December 31, 2022, and 2021, respectively. The fair value of this debt was $218.3 million and
$279.8 million at December 31, 2022, and 2021, respectively. The fair value of this debt was determined using Level 2 inputs
by evaluating similarly rated companies with publicly traded bonds where available or current borrowing rates available for
financings with similar terms and maturities.

Note 20—Contingencies

Product liability

The Company and its subsidiaries face an inherent business risk of exposure to product liability claims arising from the

alleged failure of our products to prevent the types of personal injury or death against which they are designed to protect.
Product liability claims are categorized as either single incident or cumulative trauma.

Single incident product liability claims. Single incident product liability claims involve incidents of short duration that

are typically known when they occur and involve observable injuries, which provide an objective basis for quantifying
damages. Management has established reserves for the single incident product liability claims of its various subsidiaries,
including, asserted single incident product liability claims and incurred but not reported ("IBNR") single incident claims. To
determine the reserves, Management makes reasonable estimates of losses for single incident claims based on the number and
characteristics of asserted claims, historical experience, sales volumes, expected settlement costs, and other relevant
information. The reserve for single incident product liability claims was $1.4 million at both December 31, 2022 and
December 31, 2021. Single incident product liability expense was nominal for the years ended December 31, 2022 and 2021,
compared to a benefit of $1.7 million for the year ended December 31, 2020. Single incident product liability exposures are
evaluated on an annual basis, or more frequently if changing circumstances warrant. Adjustments are made to the reserve as
appropriate. The reserve has not been discounted to present value and does not include future amounts which will be spent to
defend the claims.

Cumulative trauma product liability claims. Cumulative trauma product liability claims involve potential exposures to

substances that are alleged to have occurred over a number of years. In recent periods, this has included the asbestos, silica, and
coal dust claims of one of the Company's affiliates, Mine Safety Appliances Company, LLC ("MSA LLC"). As of
December 31, 2022, MSA LLC was named as a defendant in 1,500 lawsuits comprised of 4,054 claims. These lawsuits mainly
involve respiratory protection products allegedly manufactured and sold by MSA LLC or its predecessors. The product models
alleged were manufactured many years ago by MSA LLC and are no longer sold.

6983_FIN.pdf 75

While pending as of December 31, 2022, all of the asserted claims listed in the summary table below are the sole
responsibility of MSA LLC. MSA LLC was divested on January 5, 2023 and following that divestiture, neither the Company
nor any of its subsidiaries have any responsibility for these claims, or the types of claims, listed in the following. See
"Subsequent Event," below.

Open lawsuits, beginning of period

New lawsuits

Settled and dismissed lawsuits

Open lawsuits, end of period

Asserted claims, beginning of period
New claims
Settled, inactive and dismissed claims
Asserted claims, end of period

2022

2021

2020

1,675

300

1,622

432

(475)

(379)

1,500

1,675

1,605

402

(385)

1,622

2022

2021

2020

4,554
520

(1,020)
4,054

2,878
2,134

(458)
4,554

2,456
917

(495)
2,878

As of December 31, 2022, MSA LLC is defending an action filed in 2003 by the State of West Virginia, through its

Attorney General, in the Circuit Court of Lincoln County, West Virginia, against MSA LLC and two other manufacturers of
respiratory protection products. The State asserts several causes of action and seeks substantial compensatory damages—
primarily for reimbursement of costs the State allegedly has incurred for worker’s compensation and healthcare benefits
provided to individuals with occupational pneumoconiosis—as well as unspecified punitive damages. The State also asserts a
claim under the West Virginia Consumer Credit and Protection Act (“CCPA”), alleging that the defendants made willful
misrepresentations regarding product performance in connection with sales and advertisement of respirators in West Virginia
and seeks substantial civil penalties. The claims against MSA LLC were severed from the claims against the other defendants
and the trial date against MSA LLC was continued indefinitely in November 2022. No reserve has been recorded for this
matter because the Company believes that liability is unsupportable under West Virginia law, and therefore, has concluded that
the loss is not probable. In addition, the Company is not able to estimate a reasonably possible loss or range of reasonably
possible losses given significant unresolved legal and factual matters. MSA LLC is the named defendant in this matter and
responsibility for the matter passed along with the divestiture of MSA LLC on January 5, 2023. See "Subsequent Event,"
below.

Management previously established a reserve for MSA LLC's potential exposure to cumulative trauma product liability
claims. Prior to divestiture of the subsidiary, as of December 31, 2022, MSA LLC's total cumulative trauma product liability
reserve was $395.1 million, including $13.4 million for claims settled but not yet paid and related defense costs and $409.8
million, including $2.5 million for claims settled but not yet paid and related defense costs, as of December 31, 2021. The
reserve included estimated amounts related to asserted and IBNR asbestos, silica, and coal dust claims expected to be resolved
through the year 2075. The reserve was not discounted to present value and did not include estimated future amounts relating
to defense of the claims. Defense costs are recognized in the Consolidated Statements of Income as incurred.

At December 31, 2022, $65.1 million of the total reserve for cumulative trauma product liability claims is recorded in the
Insurance and product liability line within other current liabilities in the Consolidated Balance Sheet and the remainder, $330.0
million, is recorded in the Product liability and other noncurrent liabilities line. At December 31, 2021, $46.7 million of the
total reserve for cumulative trauma product liability claims is recorded in the Insurance and product liability line within other
current liabilities in the Consolidated Balance Sheet and the remainder, $363.1 million, is recorded in the Product liability and
other noncurrent liabilities line.

During the quarter ended June 30, 2022, MSA LLC finalized a process that will result in settlements to resolve and
dismiss several hundred claims for up to $26.3 million. Amounts to resolve the unpaid portion of these claims have been
accrued as part of the product liability reserve and as of December 31, 2022, $10.5 million remained unpaid with the final
payments made during the first quarter of 2023.

6983_FIN.pdf 76

Total cumulative trauma liability losses were $22.2 million, $228.2 million, and $77.8 million for the years ended
December 31, 2022, 2021 and 2020, respectively, and related to updates to our cumulative trauma product liability reserve as
well as the defense of cumulative trauma product liability claims for all periods. Uninsured cumulative trauma product liability
losses, which were included in Product liability and other operating expense on the Consolidated Statements of Income for the
years ended December 31, 2022, 2021 and 2020, were $20.6 million, $185.3 million and $39.0 million, respectively, and
represent the total cumulative trauma product liability losses net of any estimated insurance receivables as discussed below.

MSA LLC's cumulative trauma product liability reserve is based upon a reasonable estimate of MSA LLC’s current and

potential future liability for cumulative trauma product liability claims, in accordance with applicable accounting principles. To
develop a reasonable estimate of MSA LLC’s potential exposure to cumulative trauma product liability claims, management
performs an annual comprehensive review of MSA LLC’s cumulative trauma product liability claims in consultation with an
outside valuation consultant and outside legal counsel. The review process takes into account MSA LLC’s historical claims
experience, developments in MSA LLC’s claims experience over the past year, developments in the tort system generally, and
any other relevant information. Quarterly, management and outside legal counsel review whether significant new developments
have occurred which could materially impact recorded amounts, and if warranted, management reviews changes with an outside
valuation consultant. Adjustments to the reserve for the year ended December 31, 2022 totaled $8.4 million, resulting from our
annual comprehensive review of MSA LLC’s claims exposure, including review of activity experienced during the year.

The estimate of MSA LLC’s potential liability for cumulative trauma product liability claims, and the corresponding
reserve, are based upon numerous assumptions derived from MSA LLC’s historical experience. Those assumptions include the
incidence of applicable diseases in the general population, the number of claims that may be asserted against MSA LLC in the
future, the years in which such claims may be asserted, the counsel asserting those claims, the percentage of claims resolved
through settlement, the types and severity of illnesses alleged by claimants to give rise to their claims, the venues in which the
claims are asserted, and numerous other factors, which influence how many claims may be brought against MSA LLC, whether
those claims ultimately are resolved for payment, and at what values.

Insurance Receivable and Notes Receivable, Insurance Companies

Many years ago, MSA LLC purchased insurance policies from various insurance carriers that, subject to common contract
exclusions, provided coverage for cumulative trauma product liability losses (the "Occurrence-Based Policies"). While we have
continued to pursue reimbursement under certain remaining Occurrence-Based Policies, the vast majority of these policies have
been exhausted, settled or converted into either (1) negotiated settlement agreements with scheduled payment streams (recorded
as notes receivables) or (2) negotiated Coverage-in-Place Agreements (recorded as insurance receivables). As a result, MSA
LLC is largely self-insured for cumulative trauma product liability claims, and additional amounts recorded as insurance
receivables or notes receivables will be limited. These policies, as well as the negotiated settlement agreements and Coverage-
in-Place Agreements, together with all associated receivables are property of MSA LLC, which was divested on January 5,
2023. See "Subsequent Event," below.

When adjustments are made to amounts recorded in the cumulative trauma product liability reserve, we calculate amounts

due to be reimbursed pursuant to the terms of the negotiated Coverage-In-Place Agreements, including cumulative trauma
product liability losses and related defense costs, and we record the amounts probable of reimbursement as insurance
receivables. These amounts are not subject to current coverage litigation.

Insurance receivables at December 31, 2022 totaled $127.6 million, of which $17.3 million is reported in Prepaid
expenses and other current assets in the Consolidated Balance Sheet and $110.3 million is reported in Insurance receivable and
other noncurrent assets. Insurance receivables at December 31, 2021 totaled $130.2 million, of which $8.6 million was
reported in Prepaid expenses and other current assets in the Consolidated Balance Sheet and $121.6 million was reported in
Insurance receivable and other noncurrent assets. The vast majority of the $127.6 million insurance receivables balance at
December 31, 2022, is attributable to reimbursement believed to be due under the terms of signed Coverage-In-Place
Agreements and a portion of this amount represents the estimated recovery of IBNR amounts not yet incurred.

6983_FIN.pdf 77

A summary of insurance receivables balance and activity related to cumulative trauma product liability losses is as

follows:

(In millions)
Balance beginning of period

Additions

Collections

Balance end of period

2022

2021

130.2 $

1.8

(4.4)

127.6 $

97.0

43.5

(10.3)

130.2

We record formal notes receivables due from scheduled payment streams according to negotiated settlement agreements

with insurers. These amounts are not subject to current coverage litigation.

Notes receivable from insurance companies at December 31, 2022 totaled $44.6 million, of which $5.9 million is reported

in Notes receivable, insurance companies, current on the Consolidated Balance Sheet and $38.7 million is reported in Notes
receivable, insurance companies, noncurrent. Notes receivable from insurance companies at December 31, 2021, totaled $48.5
million, of which $3.9 million was reported in Notes receivable, insurance companies, current on the Consolidated Balance
Sheet and $44.6 million was reported in Notes receivable, insurance companies, noncurrent.

A summary of notes receivables from insurance companies balance is as follows:

(In millions)
Balance beginning of period
Additions

Collections

Balance end of period

December 31,

2022

2021

48.5 $
1.2

(5.1)

44.6 $

52.3
1.3

(5.1)

48.5

The vast majority of the insurance receivables balances at both December 31, 2022 and 2021, is attributable to

reimbursement under the terms of signed agreements with insurers and is not currently subject to litigation. The collectability
of MSA LLC's insurance receivables and notes receivables is regularly evaluated and the Company believes that the amounts
recorded are probable of collection. The determination that the recorded insurance receivables are probable of collection is
based on the terms of the settlement agreements reached with the insurers, our history of collection, and the advice of MSA
LLC's outside legal counsel and consultants. Various factors could affect the timing and amount of recovery of the insurance
and notes receivables, including assumptions regarding various aspects of the composition and characteristics of future claims
(which are relevant to calculating reimbursement under the terms of certain Coverage-In-Place Agreements) and the extent to
which the issuing insurers may become insolvent in the future.

Subsequent Event

On January 5, 2023, the Company divested MSA LLC, a wholly-owned subsidiary that holds legacy product liability
claims relating to coal dust, asbestos, silica, and other exposures, to a joint venture between R&Q Insurance Holdings Ltd. and
Obra Capital, Inc. In connection with the closing, the Company contributed $341 million in cash and cash equivalents, while
R&Q and Obra contributed an additional $35 million.

As a result of the transaction in the first quarter of 2023, we will derecognize all legacy cumulative trauma product
liability reserves, related insurance assets, and associated deferred tax assets of the divested subsidiary from our balance sheet
and will recognize a loss of approximately $200 million. R&Q and Obra's joint venture has assumed management of the
divested subsidiary, including the management of its claims and associated assets.

6983_FIN.pdf 78

Other Litigation

Two subsidiaries of the Company, Globe Manufacturing Company, LLC ("Globe") and MSA LLC, are defending a

number of lawsuits in which plaintiffs assert that certain of those entities’ products allegedly containing per- and
polyfluoroalkyl substances (“PFAS”) have caused injury, health issues, or environmental issues. PFAS are a large class of
substances that are widely used in everyday products. Specifically, Globe builds turnout gear from technical fabrics sourced
from a small pool of specialty textile manufacturers. These protective fabrics have been tested and certified to meet industry
standards, and some of them contain PFAS to achieve water, oil, or chemical resistance. No manufacturer of firefighter
protective clothing is currently able to meet National Fire Protection Association safety standards while offering coats or pants
that are completely PFAS free.

Globe and MSA LLC believe they have valid defenses to these lawsuits. These matters are at a very early stage with

numerous factual and legal issues to be resolved. Defense costs relating to these lawsuits are recognized in the Consolidated
Statement of Income as incurred. Globe and MSA LLC are also pursuing insurance coverage and indemnification related to the
lawsuits. The PFAS claims against MSA LLC were included in the divestiture of MSA LLC on January 5, 2023 as discussed
above under the Subsequent Event header. In total, Globe was named as a defendant in 34 lawsuits comprised of
approximately 1,865 claims as of February 16, 2023.

Product Warranty

The Company provides warranties on certain product sales. Product warranty reserves are established in the same period

that revenue from the sale of the related products is recognized, or in the period that a specific issue arises as to the functionality
of the Company's product. The determination of such reserves requires the Company to make estimates of product return rates
and expected costs to repair or to replace the products under warranty.

The amounts of the reserves are based on established terms and the Company's best estimate of the amounts necessary to

settle future and existing claims on products sold as of the balance sheet date. If actual return rates and/or repair and
replacement costs differ significantly from estimates, adjustments to recognize additional cost of sales may be required in future
periods.

The following table reconciles the changes in the Company's accrued warranty reserve:

(In thousands)
Beginning warranty reserve

Warranty payments

Warranty claims

Provision for product warranties and other adjustments

Ending warranty reserve

December 31,

2022

2021

2020

12,423 $

(10,631)

14,544

(1,106)
15,230 $

11,428 $

(8,987)

10,225

(243)
12,423 $

12,715

(10,861)

10,233

(659)
11,428

Warranty expense for the years ended December 31, 2022, 2021 and 2020 was $13.4 million, $10.0 million and $9.6

million, respectively and is included in Costs of products sold on the Consolidated Statements of Income.

6983_FIN.pdf 79

Note 21—Quarterly Financial Information (Unaudited)

(In thousands, except per share amounts)
Net sales

Gross profit

Quarters

2022

3rd

1st

2nd

4th

Year

$ 330,692 $ 372,313 $ 381,694 $ 443,254 $ 1,527,953

142,784

164,400

169,395

197,252

673,831

179,630

Net income attributable to MSA Safety Incorporated

35,542

47,693

44,906

51,489

Earnings per share(1)
Basic

Diluted

(In thousands, except earnings per share)
Net sales

0.90 $

1.21 $

1.15 $

1.31 $

0.90

1.21

1.14

1.31

4.58

4.56

Quarters

2021

3rd

1st

2nd

4th

Year

$ 308,428 $ 341,289 $ 340,197 $ 410,268 $ 1,400,182

Gross profit
Net income (loss) attributable to MSA Safety Incorporated

134,785

153,000

149,439

178,124

615,348

36,450

25,186

21,180

(61,476)

21,340

Earnings (loss) per share(1)
Basic

Diluted

0.93 $

0.64 $

0.54 $

(1.57) $

0.92

0.64

0.54

(1.57)

0.54

(1) Per share amounts are calculated independently for each period presented; therefore, the sum of the quarterly per share
amounts may not equal the per share amounts for the year.

6983_FIN.pdf 80

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

(a) Evaluation of disclosure controls and procedures. Based on their evaluation as of the end of the period covered by

this Form 10-K, the Company’s principal executive officer and principal financial officer have concluded that the Company’s
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the
“Exchange Act”)) are effective to ensure that information required to be disclosed by the Company in reports that it files or
submits under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in
Securities and Exchange Commission rules and forms and (ii) accumulated and communicated to our management, including
the principal executive officer and principle financial officer, as appropriate to allow timely decisions regarding required
disclosure.

(b) Changes in internal control. There were no changes in the Company’s internal control over financial reporting that
occurred during the Company’s most recent fiscal quarter, that have materially affected, or are reasonably likely to materially
affect, the Company’s internal control over financial reporting.

See Item 8. Financial Statements and Supplementary Data—“Management’s Report on Internal Control Over Financial

Reporting” and “Report of Independent Registered Public Accounting Firm.”

Item 9B. Other Information

None.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

None.

6983_FIN.pdf 81

Item 10. Directors, Executive Officers and Corporate Governance

Item 11. Executive Compensation

PART III

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13. Certain Relationships and Related Transactions, and Director Independence

Item 14. Principal Accountant Fees and Services

With respect to this Part III, incorporated by reference herein pursuant to Rule 12b—23 are (1) “Election of

Directors,” (2) “Executive Compensation,” (3) “Other Information Concerning the Board of Directors,” (4) “Stock Ownership,”
and (5) “Selection of Independent Registered Public Accounting Firm,” appearing in the Proxy Statement filed pursuant to
Regulation 14A in connection with the registrant’s Annual Meeting of Shareholders to be held on May 12, 2023. The
information appearing in such Proxy Statement under the caption “Audit Committee Report” and the other information
appearing in such Proxy Statement and not specifically incorporated by reference herein is not incorporated herein. As to
Item 10 above, also see the information reported in Part I of this Form 10-K, under the caption “Information about our
Executive Officers,” which is incorporated herein by reference. As to Item 10 above, the Company has adopted a Code of
Ethics applicable to its principal executive officer, principal financial officer and principal accounting officer and other
Company officials. The text of the Code of Ethics is available on the Company’s website at www.MSAsafety.com. Any
amendment to, or waiver of, a required provision of the Code of Ethics that applies to the Company’s principal executive,
financial or accounting officer will also be posted on the Company’s Internet site at that address.

As to Item 12 above, the following table sets forth information as of December 31, 2022 concerning common stock

issuable under the Company’s equity compensation plans.

Plan Category
Equity compensation plans approved by security holders

Equity compensation plans not approved by security holders

Total

Number of securities
to be issued upon
exercise of
outstanding
options,
warrants and rights
(a)

Weighted average
exercise price of
outstanding options,
warrants and rights
(b)

Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in column (a))
(c)

58,156 $

None

58,156

46.48

—

46.48

675,703 *

None

675,703

*Includes 598,813 shares available for issuance under the Amended and Restated 2016 Management Equity Incentive Plan and
76,890 shares available for issuance under the 2017 Non-Employee Directors’ Equity Incentive Plan.

6983_FIN.pdf 82

Item 15. Exhibits and Financial Statement Schedules

PART IV

(a) 1. Financial Statements and Report of Independent Registered Public Accounting Firm (see Part II, Item 8 of this

Form 10-K).

The following information is filed as part of this Form 10-K.

Management's Report on Responsibility for Financial Reporting and Management's Report on Internal
Control Over Financial Reporting

Report of Independent Registered Public Accounting Firm (PCAOB ID: 42)

Consolidated Statements of Income—three years ended December 31, 2022

Consolidated Statements of Comprehensive Income—three years ended December 31, 2022

Consolidated Balance Sheets—December 31, 2022 and 2021

Consolidated Statements of Cash Flows—three years ended December 31, 2022
Consolidated Statements of Changes in Retained Earnings and Accumulated Other Comprehensive
Income—three years ended December 31, 2022

Notes to Consolidated Financial Statements

Page

(a) 2. The following additional financial information for the three years ended December 31, 2022 is filed with the report

and should be read in conjunction with the above financial statements:

Schedule II—Valuation and Qualifying Accounts

All other schedules are omitted because they are not applicable, not material or the required information is shown in the

consolidated financial statements and consolidated notes to the financial statements listed above.

(a) 3. Exhibits

Several of the following exhibits are incorporated herein by reference under Rule 12b-32 of the Securities Exchange Act

of 1934, as amended, as indicated next to the name of the exhibit. Several other instruments, which would otherwise be required
to be listed below, have not been so listed because those instruments do not authorize securities in an amount that exceeds 10%
of the total assets of the registrant and its subsidiaries on a consolidated basis. The registrant agrees to furnish a copy of any
instrument that was so omitted on that basis to the Commission upon request.

3(i)

3(ii)

4(d)

10(a)*

10(b)*

10(c)*

10(d)*

10(e)*

10(f)*

Amended and restated Articles of Incorporation, filed as Exhibit 3.1 to Form 8-K on March 7, 2014, is incorporated
herein by reference.

Amended and restated By-laws of the registrant, filed as Exhibit 3.2 to Form 8-K on March 7, 2014, is incorporated
herein by reference.

Description of MSA Safety Incorporated Securities Registered under Section 12 of the Securities Exchange Act of
1934, as amended, filed as Exhibit 4(d) to Form 10-K on February 20, 2020, is incorporated herein by reference.

MSA Safety Incorporated Amended and Restated 2016 Management Equity Incentive Plan, filed as Appendix A to
the registrant’s definitive proxy statement dated March 31, 2016, is incorporated herein by reference.

Retirement Plan for Directors, as amended effective April 1, 2001, filed as Exhibit 10(a) to Form 10-Q on May 10,
2006, is incorporated herein by reference.

Supplemental Pension Plan as of May 5, 1998, filed as Exhibit 10(d) to Form 10-Q on August 12, 2003, is
incorporated herein by reference.

Supplemental Pension Plan as amended and restated effective January 1, 2005, filed as Exhibit 10.3 to Form 10-Q
on April 30, 2009, is incorporated herein by reference.

2017 Non-Employee Directors’ Equity Incentive Plan, filed as Exhibit A to the registrant's definitive proxy
statement dated April 7, 2017, is incorporated herein by reference.

Executive Insurance Program as Amended and Restated as of January 1, 2006, filed as Exhibit 10(a) to Form 10-Q
on August 7, 2007, is incorporated herein by reference.

6983_FIN.pdf 83

10(g)*

10(h)*

10(i)*

10(j)*

Annual Incentive Bonus Plan as of May 5, 1998, filed as Exhibit 10(g) to Form 10-Q on August 12, 2003, is
incorporated herein by reference.

Supplemental Executive Retirement Plan, effective January 1, 2008, filed as Exhibit 10.2 to Form 10-Q on
April 30, 2009, is incorporated herein by reference.

Form of Change-in-Control Severance Agreement between the registrant and its executive officers, filed as
Exhibit 10.1 to Form 10-Q on April 30, 2009, is incorporated herein by reference.

2003 Supplemental Savings Plan, effective January 1, 2003, filed as Exhibit 10(k) to Form 10-K on February 24,
2014, is incorporated herein by reference.

10(k)*

2005 Supplemental Savings Plan, as amended and restated, effective June 1, 2022, is filed herewith.

10(l)*

Executive Incentive Plan, as of January 1, 2020, is filed herewith.

10(m)

Fourth Amended and Restated Credit Agreement, dated as of May 24, 2021, by and among MSA Safety
Incorporated, MSA UK Holdings Limited, MSA Great Britain Holdings Limited, MSA International Holdings
B.V., as borrowers, various MSA subsidiaries, as guarantors, various financial institutions, as lenders, and PNC
Bank National Association, as administrative agent, filed as Exhibit 10.1 to Form 8-K/A on May 26, 2021, is
incorporated herein by reference.

10(n)

10(o)

10(p)

10(q)

10(r)

10(s)

10(t)

10(u)

31.1

31.2

Third Amended and Restated Multi-Currency Note Purchase and Private Shelf Agreement dated July 1, 2021 with
PGIM, Inc. and the noteholders party thereto, filed as Exhibit 10.1 to Form 8-K/A on July 16, 2021, is incorporated
herein by reference.

Second Amended and Restated Master Note Facility dated as of July 1, 2021 with NYL Investors LLC and the
noteholders party thereto, filed as Exhibit 10.2 to Form 8-K/A on July 16, 2021, is incorporated herein by
reference.

Agreement and Plan of Merger, dated May 23, 2021, by and among MSA Advanced Detection, LLC, a
Pennsylvania limited liability company, Cardinal Merger Subsidiary, Inc., a Delaware corporation, MSA Safety
Incorporated, a Pennsylvania corporation, Viking Topco, Inc., a Delaware corporation, and Laurel Solutions
Holdings LLC, a Delaware limited liability company, solely in its capacity as a representative of the stockholders
of Viking Topco, Inc., filed as Exhibit 10.1 to Form 8-K on May 24, 2021, is incorporated herein by reference.

Membership Interest Purchase Agreement, dated January 5, 2023, by and among MSA Worldwide, LLC, a
Pennsylvania limited liability company, Mine Safety Appliances Company, LLC, a Pennsylvania limited liability
company, Sag Main Holdings, LLC, a Delaware limited liability company, and MSA Safety Jacksonville
Manufacturing LLC, a Pennsylvania limited liability company, filed as Exhibit 10.1 to Form 8-K on January 6,
2023, is incorporated by reference.

Credit Agreement, dated January 5, 2023, by and among the Company, as borrower, various Company subsidiaries,
as guarantors, various financial institutions, as lenders, and PNC Bank, National Association, as administrative
agent, filed as Exhibit 10.2 to Form 8-K on January 6, 2023, is incorporated herein by reference.

Amendments to Fourth Amended and Restated Credit Agreement, dated May 24, 2021, as amended, among the
Company, the other Borrowers party thereto, the Guarantors party thereto, the Lenders party thereto and PNC
Bank, National Association, as Administrative Agent, filed as Exhibit 10.3 to Form 8-K on January 6, 2023, is
incorporated herein by reference.

Amendment No. 1 and Consent to Third Amended and Restated Multicurrency Note Purchase and Private Shelf
Agreement, dated as of December 30, 2022, among MSA Safety Incorporated, each of the Guarantors signatory
hereto, PGIM, INC. and each of the holders of Notes, filed as Exhibit 10.4 to Form 8-K on January 6, 2023, is
incorporated herein by reference.

Amendment No. 1 and Consent to Second Amended and Restated Master Note Facility, dated as of December 30,
2022, among MSA Safety Incorporated, each of the Guarantors signatory hereto, NYL Investors LLC and each of
the holders of Notes, filed as Exhibit 10.5 to Form 8-K on January 6, 2023, is incorporated herein by reference.

Affiliates of the registrant is filed herewith.

Consent of Ernst & Young LLP, independent registered public accounting firm is filed herewith.

Certification of Nishan J. Vartanian pursuant to Rule 13a-14(a) is filed herewith.

Certification of Lee B. McChesney pursuant to Rule 13a-14(a) is filed herewith.

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C.§1350 is filed herewith.

6983_FIN.pdf 84

101.INS XBRL Instance Document

101.SCH XBRL Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

101.LAB XBRL Taxonomy Extension Label Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

*The exhibits marked by an asterisk are management contracts or compensatory plans or arrangements.

Item 16. Form 10-K Summary

None.

6983_FIN.pdf 85

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused

this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MSA SAFETY INCORPORATED

SIGNATURES

February 16, 2023
(Date)

/s/ NISHAN J. VARTANIAN

Nishan J. Vartanian
Chairman, President and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following

persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature

Title

Date

/S/ NISHAN J. VARTANIAN
Nishan J. Vartanian

Chairman, President and Chief Executive Officer
(Principal Executive Officer)

February 16, 2023

/S/ LEE B. MCCHESNEY
Lee B. McChesney

Senior Vice President and Chief Financial Officer

February 16, 2023

/S/ JONATHAN D. BUCK
Jonathan D. Buck

Chief Accounting Officer and Controller
(Principal Accounting Officer)

/S/ ROBERT A. BRUGGEWORTH
Robert A. Bruggeworth

Director

/S/ GREGORY B. JORDAN
Gregory B. Jordan

Director

/S/ WILLIAM M. LAMBERT
William M. Lambert

Director

/S/ DIANE M. PEARSE
Diane M. Pearse

Director

/S/ REBECCA B. ROBERTS
Rebecca B. Roberts

Director

/S/ SANDRA PHILLIPS ROGERS
Sandra Phillips Rogers

Director

/S/ JOHN T. RYAN III
John T. Ryan III

Director

/s/ LUCA SAVI
Luca Savi

Director

/S/ WILLIAM R. SPERRY
William R. Sperry

Director

6983_FIN.pdf 86

February 16, 2023

MSA SAFETY INCORPORATED

VALUATION AND QUALIFYING ACCOUNTS

THREE YEARS ENDED DECEMBER 31, 2022

SCHEDULE II

Allowance for doubtful accounts:

Balance at beginning of year

Additions—

Charged to costs and expenses

Deductions—

Deductions from reserves, net (1)(2)

Balance at end of year

Income tax valuation allowance:

Balance at beginning of year

Additions—

Charged to costs and expenses (3)

Deductions—

Deductions from reserves (3)

Balance at end of year

(1) Bad debts written off, net of recoveries.

2022

2021

(In thousands)

2020

5,789 $

5,344 $

4,860

1,253

1,645

273

6,769 $

1,200

5,789 $

1,172

688

5,344

8,812 $

7,188 $

5,936

2,771

1,566

2,575

951

10,017 $

8,812 $

2,854

1,602

7,188

(2) Activity for 2022, 2021 and 2020 includes currency translation gains (losses) of $202, $79 and $(107), respectively.

(3) Activity for 2022, 2021 and 2020 includes currency translation gains (losses) of $622, $29 and $(41), respectively.

6983_FIN.pdf 87

Board of Directors and Executive Leadership Team

Board of Directors
(As of March 30, 2023)

Robert A. Bruggeworth (1) (3) (6)

John T. Ryan III (4) (5)

President and Chief Executive Officer, Qorvo, Inc.

Retired (2008); formerly Chief Executive Officer and

(high-performance RF components and compound

Chairman of the Company

semiconductors manufacturer); Director, Qorvo, Inc.

Luca Savi (3)

Gregory B. Jordan (5)

Chief Executive Officer and President, ITT Inc. (manufacturer

Executive Vice President, General Counsel and

of critical components and customized technology solutions);

Chief Administrative Officer of The PNC Financial Services

Director, ITT Inc.

Group, Inc. (financial services provider)

William M. Lambert (5)

William R. Sperry (2) (4)

Executive Vice President and Chief Financial Officer of Hubbell

Retired (2018); formerly Chief Executive Officer and Chairman

Incorporated (international manufacturer of quality electrical

of the Company; Director, Kennametal, Inc.

and electronic products)

Diane M. Pearse (2) (4) (5)

Nishan J. Vartanian

Retired (February 2022); formerly Chief Executive Officer and

Chairman, President and Chief Executive Officer

President, Hickory Farms, LLC

Rebecca B. Roberts (3) (6)

Retired (2011); formerly President of Chevron Pipe Line

Company; Director, Black Hills Corporation; Director, AbbVie, Inc.

(1) Lead Independent Director

Sandra Phillips Rogers (2) (6)

Group Vice President, General Counsel, Chief Legal Officer

and Chief Diversity Officer, Toyota Motor North America,

Inc. (automobile manufacturer and seller); Director,

The Chemours Company

(2) Member of the Audit Committee

(3) Member of the Compensation Committee

(4) Member of the Finance Committee

(5) Member of the Law Committee

(6) Member of the Nominating and Corporate Governance Committee

Executive Leadership Team
(As of March 30, 2023)

Nishan J. Vartanian

Lee B. McChesney

Chairman, President and Chief Executive Officer

Senior Vice President and Chief Financial Officer

Steven C. Blanco

Stephanie L. Sciullo

Senior Vice President and President, MSA Americas

Senior Vice President and Chief Legal Officer,

R. Anne Herman

Vice President, MissionOPS

Bob W. Leenen

Corporate Social Responsibility and Public Affairs

Markus H. Weber

Vice President and Chief Information Officer

Senior Vice President and President, MSA International

Glennis A. Williams

Gregory L. Martin

Vice President, Product Strategy and Development

David B. McArthur

Vice President, Global Customer Marketing

and Chief Customer Officer

Vice President and Chief Human Resource Officer

6983_FIN.pdf 88

In October 2022, MSA Safety named Lee McChesney Senior Vice President and Chief Financial Officer.

Lee brings to MSA 20-plus years of financial leadership experience in guiding a large, growth-focused,

Fortune 500 industrial manufacturing company. Prior to joining the company, Mr. McChesney served

as Vice President, Corporate Finance and Chief Financial Officer for Stanley Black & Decker’s $12.8 billion

operating unit, Global Tools and Storage.

In June 2022, the Company’s Chief Executive Officer submitted
to the New York Stock Exchange the annual certification as to
compliance with the Exchange’s Corporate Governance Listing
Standards required by Section 303A.12(a) of the Exchange’s Listed
Company Manual. The certification was unqualified.

The Company’s reports filed with the Securities and Exchange
Commission during the past year, including the Form 10-K for the
year ended December 31, 2022, have contained the certifications
of the Company’s Chief Executive Officer and Chief Financial Officer
regarding the quality of the Company’s public disclosure required by
Section 302 of the Sarbanes-Oxley Act.

Additional copies of the Company’s 2022 Annual Report, including
Form 10-K, as filed with the Securities and Exchange Commission,
may be obtained by shareholders after April 1, 2023. Printed and
electronic versions are available. Requests should be directed to the
Chief Financial Officer, who can be reached at one of the following:

Phone:
Internet:
U.S. Mail: MSA

724-741-8221
www.MSAsafety.com

Chief Financial Officer
1000 Cranberry Woods Drive
Cranberry Township, PA 16066

1000 Cranberry Woods Drive

Cranberry Township, PA 16066

724-776-8600