CHS (CHSCL) risk factors, FY2025 10-K

Other

1. 01OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
2. 02Reference to this cautionary statement (the "Cautionary Statement") in the context of a forward-looking statement shall be deemed to be a statement that any one or more of the following factors may cause actual results to differ materially from those indicated in the forward-looking statement

Risks Related to Operating Our Business

1. 03Our revenues, results of operations and cash flows could be materially and adversely affected by changes in commodity prices
2. 04We are subject to political, economic, legal and other risks of doing business globally
3. 05Ongoing wars and global conflicts may adversely affect our business, financial condition and results of operations73% rewritten
4. 06Our business and operations and demand for our products are highly dependent on certain global and regional factors that are outside our control and could adversely impact our business
5. 07Inflation may result in increased costs, which could have a material and adverse effect on our results of operations
6. 08We participate in highly competitive business markets and we may not be able to continue to compete successfully, which could have a material adverse effect on us
7. 09Our revenues, margins, results of operations and cash flows could be materially and adversely affected if our members were to do business with other companies rather than with us
8. 10If our customers choose alternatives to our refined petroleum products, our revenues, results of operations and cash flows could be materially and adversely affected
9. 11Consolidation among producers of products we purchase and customers for products we sell could materially and adversely affect our revenues, results of operations and cash flows
10. 12We are exposed to risk of nonperformance and nonpayment by counterparties
11. 13Our business, profitability and liquidity may be adversely affected by deterioration in the credit quality of, or defaults by, third parties who owe us money84% rewritten
12. 14counterparties do not pay us back and we experience significant defaults on their payment obligations to us, our financial condition, results of operations or cash flows could be materially and adversely affectedNew
13. 15Our risk management strategies may not be effective
14. 16Actual or perceived quality, safety or health risks associated with our products could subject us to significant liability and damage our business and reputation
15. 17Our operations are subject to business interruptions, casualty losses and supply chain issues. We do not insure against all potential losses and could be seriously harmed by unanticipated liabilities
16. 18Our business and operations have been, and may in the future, be adversely affected by epidemics, pandemics, outbreaks of disease and other adverse public health developments25% rewritten
17. 19We are subject to workforce factors that could adversely affect our business and financial condition
18. 20Technological improvements and sustainability initiatives could decrease demand for our agronomy and energy products44% rewritten
19. 21Artificial Intelligence (“AI”), including generative AI, advancements are progressing at an unprecedented pace, which brings risks that could subject us to loss through various technical, legal, and opportunistic-related risksNew
20. 22Our operations rely on certain key information technology ("IT") systems, many of which are legacy in nature or may depend on third-party services to provide critical connections of data, information and services for internal and external users29% rewritten
21. 23Increasing scrutiny and changing expectations from stakeholders with respect to our environmental, social and governance practices may expose us to new or additional risks66% rewritten
22. 24Failures or delays in achieving our strategies or expectations related to climate change and other environmental matters could adversely affect our business, operations and reputation, and increase risk of litigation
23. 25Acquisitions, strategic alliances, joint ventures, mergers, divestitures and other nonordinary course-of-business events resulting from portfolio management actions and other evolving business strategies could affect future results

Risks Related to Laws and Regulations

1. 26Government policies, mandates, regulations, trade agreements, domestic and foreign trade policies, including the imposition of tariffs and retaliatory tariffs, and other factors beyond our control could adversely affect our operations and profitabilityNew
2. 27Changes in federal income tax laws or in our tax status, or changes to tax rules in jurisdictions in which we operate, could increase our tax liability and reduce our net income significantly52% rewritten
3. 28We incur significant costs in complying with applicable laws and regulations. Any failure to comply with these laws and regulations, or to make capital or other investments necessary to comply with these laws and regulations, could expose us to unanticipated expenditures and liabilities40% rewritten
4. 29We are subject to extensive anti-corruption, anti-bribery, anti-kickback and trade laws and regulations, and any noncompliance with those laws and regulations could have a material adverse effect on our business, financial condition and results of operations
5. 30Environmental and energy laws and regulations may result in increased operating costs and capital expenditures, and may have a material and adverse effect on us61% rewritten
6. 31Environmental liabilities and litigation could have a material adverse effect on us

Risks Related to Our Financial Position and Financing Our Business

1. 32Our financial results are susceptible to seasonality
2. 33If any of our long-lived assets become impaired, we could be required to record a significant impairment charge, which would negatively impact our results of operations
3. 34Our business is capital-intensive and we rely on cash generated from our operations and external financing to fund our strategies and ongoing capital needs
4. 35Our access to capital could be affected by financial institutions' and other capital sources' policies concerning energy-related businesses
5. 36Our cooperative structure limits our ability to access equity capital