ATS Corp /ATS
For the period ended Mar 31, 2025. Filed May 29, 2025.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2025 · Filed May 29, 2025
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Contents
EX-99.2 · Contractual Obligations
Contractual Obligations
The Company's contractual obligations are as follows as at March 31, 2025:
| Payments Due by Period | |||||||
|---|---|---|---|---|---|---|---|
| Total | <1 Year | 1-2 Years | 2-3 Years | 3-4 Years | 4-5 Years | >5 Years | |
| Bank indebtedness | $27.3 | $27.3 | $— | $— | $— | $— | $— |
| Long-term debt obligations1 | 1,933.1 | 60.0 | 496.9 | 75.6 | 563.6 | 39.3 | 697.7 |
| Lease liability obligations1 | 147.3 | 36.6 | 29.7 | 20.7 | 16.8 | 13.9 | 29.6 |
| Purchase obligations | 403.9 | 385.2 | 13.3 | 2.2 | 1.6 | 1.0 | 0.6 |
| Accounts payable and accrued liabilities | 665.1 | 665.1 | — | — | — | — | — |
| Total | $3,176.7 | $1,174.2 | $539.9 | $98.5 | $582.0 | $54.2 | $727.9 |
1 Long-term debt obligations and lease liability obligations include principal and interest.
The Company's off-balance sheet arrangements consist of purchase obligations, primarily commitments for material purchases, which have been entered into in the normal course of business.
In accordance with industry practice, the Company is liable to customers for obligations relating to contract completion and timely delivery. In the normal conduct of its operations, the Company may provide letters of credit as security for advances received from customers pending delivery and contract performance. In addition, the Company provides letters of credit for post-retirement obligations and may provide letters of credit as security on equipment under lease and on order. As at March 31, 2025, the total value of outstanding letters of credit was approximately $279.4 million (March 31, 2024 - $171.1 million).
In the normal course of operations, the Company is party to a number of lawsuits, claims and contingencies. Although it is possible that liabilities may be incurred in instances for which no accruals have been made, the Company does not believe that the ultimate outcome of these matters will have a material impact on its consolidated financial statements.
The Company is exposed to credit risk on derivative financial instruments arising from the potential for counterparties to default on their contractual obligations to the Company. The Company minimizes this risk by limiting counterparties to major financial institutions and monitoring their credit worthiness. The Company's credit exposure to forward foreign exchange contracts is the current replacement value of contracts that are in a gain position. The Company is also exposed to credit risk from its customers. Substantially all of the Company's trade accounts receivable are due from customers in a variety of industries and, as such, are subject to normal credit risks from their respective industries. The Company regularly monitors customers for changes in credit risk. The Company does not believe that any single market or geographic region represents significant credit risk. Credit risk concentration, with respect to trade receivables, is mitigated as the Company primarily serves large, multinational customers and obtains receivables insurance in certain instances.
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