Flowserve (FLS) risk factors, FY2024 10-K

Business and Operating Risks

1. 01Any of these results could continue to adversely affect our business, financial condition, results of operations and cash flows
2. 02Our inability to deliver our backlog on time could affect our revenues, future sales and profitability and our relationships with customers
3. 03Failure to successfully execute and realize the expected financial benefits from any restructuring and strategic realignment and other cost-saving initiatives could adversely affect our business
4. 04We sell our products in highly competitive markets, which results in pressure on our profit margins and limits our ability to maintain or increase the market share of our products
5. 05Failure to successfully develop and introduce new products and integrate new technologies, including artificial intelligence and machine learning, could limit our ability to grow and maintain our competitive position and adversely affect our financial condition, results of operations and cash flow
6. 06Our inability to obtain raw materials at favorable prices may adversely affect our operating margins and results of operations
7. 07to pass increases in the costs of our raw materials on to our customers or if other methods to offset our increased costs through supply chain management, contractual provisions and gains in operational efficiencies are not achieved
8. 08Terrorist acts, conflicts, wars, natural or manmade disasters, epidemics or pandemics, acts of God and other such events around the world at times materially adversely affect our business, financial condition and results of operations and the market for our common stock
9. 09Global climate change and our commitments to reduce our carbon emissions presents challenges to our business which could materially adversely affect us
10. 10Our business may be adversely impacted by work stoppages and other labor matters
11. 11Our growth strategy depends on our ability to continue to expand our market presence through acquisitions, and any future acquisitions may present unforeseen integration difficulties or costs which could materially affect our business
12. 12A significant data breach or disruption to our information technology infrastructure could materially adversely affect our business operations

Risks Related to International Operations

1. 13Economic, political and other risks associated with our international operations could adversely affect our business
2. 14Implementation of new tariffs and changes to or uncertainties related to tariffs and trade agreements could adversely affect our business
3. 15Our international operations expose us to fluctuations in foreign currency exchange rates which could adversely affect our business
4. 16We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws and regulations

Regulatory and Legal Risks

1. 17Our operations are subject to a variety of complex and continually changing laws, regulations and policies, both internationally and domestically, which could adversely affect our business
2. 18Our operations and properties are subject to regulation under environmental laws, which can impose substantial sanctions for violations. We must conform our operations to applicable regulatory requirements and adapt to changes in such requirements in all countries in which we operate
3. 19We are exposed to certain regulatory and financial risks related to climate change, which could adversely affect our financial condition, results of operations and cash flows
4. 20compliance. As regulatory requirements such as CSRD and other climate change regulations continue to evolve, the anticipated costs and operational impacts could adversely affect our financial condition and results of operations
5. 21We are party to asbestos-containing product litigation that could adversely affect our financial condition, results of operations and cash flows
6. 22Inability to protect our intellectual property could negatively affect our competitive position
7. 23Increased costs as a result of product liability and warranty claims could adversely affect our financial condition, results of operations and cash flows

Financial and Accounting Risks

1. 24Significant changes in pension fund investment performance or assumptions changes may have a material effect on the valuation of our obligations under our defined benefit pension plans, the funded status of these plans and our pension expense
2. 25The recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could adversely affect our operating results
3. 26Our outstanding indebtedness and the restrictive covenants in the agreements governing our indebtedness limit our operating and financial flexibility
4. 27Goodwill impairment could negatively impact our net income and shareholders' equity
5. 28The failure to maintain effective internal controls could impact the accuracy and timely reporting of our business and financial results

General Risks

1. 29We depend on key personnel, the loss of whom would harm our business
2. 30Changes in accounting principles and guidance could result in unfavorable accounting charges or effects
3. 31Forward-Looking Information is Subject to Risk and Uncertainty