Curtiss Wright (CW) risk factors, FY2024 10-K

RISKS RELATED TO OUR OPERATIONS

1. 01Intrusion on our systems could damage our business
2. 02Potential product liability risks exist from the products that we sell
3. 03We are subject to liability under warranty obligations
4. 04Our earnings and margins depend in part on subcontractor performance, as well as raw material and component availability and pricing
5. 05Our business involves risks associated with complex manufacturing processes

RISKS RELATED TO OUR STRATEGY

1. 06Implementing our acquisition strategy involves risks, and our failure to successfully implement this strategy could have a material adverse effect on our business
2. 07Our future success will depend, in part, on our ability to develop new technologies
3. 08We operate in highly competitive markets
4. 09We may be unable to protect the value of our intellectual property

RISKS RELATED TO MARKET CONDITIONS

1. 10A substantial portion of our revenues and earnings depends upon the continued willingness of the U.S. Government and other customers in the defense industry to buy our products and services
2. 11A downturn in the aircraft market could adversely affect our business
3. 12Our backlog is subject to reduction and cancellation, which could negatively impact our revenues and results of operations
4. 13As a U.S. Government contractor, we are subject to numerous procurement rules and regulations
5. 14Any significant disruption in the commercial nuclear power industry could adversely affect our business
6. 15Our nuclear business subjects us to various regulatory and financial risks
7. 16The airline industry is heavily regulated, and if we fail to comply with applicable requirements, our results of operations could suffer
8. 17We are subject to liability under environmental and health and safety laws and regulations
9. 18We may be subject to periodic litigation and regulatory proceedings, which may adversely affect our business and financial performance
10. 19Our business, financial condition, and results of operations could be materially adversely affected by climate change regulations
11. 20Increasing focus on environmental, social, and governance responsibility may impose additional costs on us and expose us to new risks

RISKS RELATED TO FINANCIAL MATTERS

1. 21Political and economic changes in foreign countries and markets, including foreign currency fluctuations, may have a material effect on our operating results
2. 22Unanticipated changes in our tax provisions or exposure to additional income tax liabilities could affect our cash flows and financial condition
3. 23We use estimates when accounting for contracts that apply over-time revenue recognition. Changes in estimates could affect our profitability and overall financial position
4. 24Our future financial results could be adversely impacted by asset impairment charges
5. 25Our current debt, and debt we may incur in the future, could adversely affect our business and financial position
6. 26We self-insure health benefits and may be adversely impacted by unfavorable claims experience
7. 27Increasing costs of certain employee and retiree benefits could adversely affect our financial position, results of operations, or cash flows

GENERAL RISKS

1. 28Our future growth and continued success are dependent upon our key personnel
2. 29Our business, financial condition, and results of operations could be materially adversely affected if the United States were to withdraw from or materially modify certain international trade agreements, or if tariffs or other restrictions on the foreign-sourced goods that we sell were to increase
3. 30Global economic conditions may adversely affect our business, operating results and financial condition
4. 31A percentage of our workforce is employed under collective bargaining agreements
5. 32Future terror attacks, war (including the Russia-Ukraine war), natural disasters, climate change-related events, or other events beyond our control could adversely impact our businesses
6. 33Pandemics, epidemics or other public health emergencies, such as the outbreak of COVID-19 may adversely impact our business, operations, and financial results