Global Payments (GPN) risk factors, FY2024 10-K

Financial Risks

1. 01Intellectual Property Risks
2. 20We are subject to risks associated with changes in interest rates or currency exchange rates and may not effectively hedge against these risks, which could adversely affect our business, financial condition, results of operations and cash flows
3. 21A downgrade in the ratings of our debt could restrict our ability to access the debt capital markets and increase our interest costs
4. 22Failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business
5. 23We may not be able to successfully manage our intellectual property and may be subject to infringement claims

Risks Related to Our Business Model and Operations

1. 02Any of the foregoing could adversely affect our business, financial condition and results of operation
2. 03Software and hardware defects, failures, undetected errors and development delays could affect our ability to deliver our services, damage customer relations, expose us to liability and have an adverse effect on our business, financial condition and results of operations
3. 04We depend on relationships with third parties. Our systems or our third-party providers' systems may fail, or we may be unable to renew or renegotiate agreements with key suppliers, which could interrupt our service, cause us to lose business, increase our costs and expose us to liability
4. 05The payments technology industry is highly competitive and highly innovative, and some of our competitors have greater financial and operational resources than we do, which may give them an advantage with respect to the pricing of services offered to customers and the ability to develop new and disruptive technologies
5. 06In order to remain competitive and to continue to increase our revenues and earnings, we must continually and quickly update our services, a process that could result in higher costs and the loss of revenues, earnings and customers if the new services do not perform as intended or are not accepted in the marketplace
6. 07Our revenues from the provision of services to merchants that accept Visa and Mastercard are dependent upon our continued Visa and Mastercard registrations, financial institution sponsorship and, in some cases, continued membership in certain card networks
7. 08Increased merchant, referral partner, ISO or payment facilitator attrition could cause our financial results to decline
8. 09Our future growth depends in part on the continued expansion within markets in which we already operate, the emergence of and our entry into new markets and the continued availability of alliance relationships and strategic acquisition and joint venture opportunities
9. 10There may be a decline in the use of cards and other digital payments as a payment mechanism for consumers or other adverse developments with respect to the card industry in general
10. 11If we do not renew or renegotiate our agreements on favorable terms with our customers within the Issuer Solutions segment, our business will suffer. The timing of the conversions or deconversions of card portfolios could also affect the amount and timing of our revenues and expenses
11. 12We incur chargeback losses when our merchants refuse or cannot reimburse us for chargebacks resolved in favor of their customers. Any increase in chargebacks not paid by our merchants could adversely affect our business, financial condition, results of operations and cash flows
12. 13Fraud by merchants or others and losses from overdrawn cardholder accounts could have an adverse effect on our business, financial condition, results of operations and cash flows
13. 14Increases in card network fees may result in the loss of customers and/or a reduction in our earnings
14. 15From time to time, we may dispose of businesses that do not meet our strategic objectives
15. 16We may not realize the anticipated growth benefits and cost savings from, or our business may be disrupted by, our business transformation and reorganization activities. Any of the foregoing could adversely affect our business, financial condition and results of operation
16. 17Our business may be affected by current and future laws and regulations governing the development, use and deployment of AI technologies, as well as potentially related private litigation

Legal, Regulatory Compliance and Tax Risks

1. 18New or revised tax regulations, unfavorable resolution of tax contingencies or changes to enacted tax rates could adversely affect our tax expense
2. 19Our risk management policies and procedures may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk

Risks Related to Our Capital Structure

1. 24Our substantial indebtedness could adversely affect us and limit our business flexibility
2. 25We may not be able to raise additional funds to finance our future capital needs
3. 26Our balance sheet includes significant amounts of goodwill and other intangible assets. The impairment of a portion of these assets could adversely affect our business, financial condition and results of operations
4. 27We may not be able to, or we may decide not to, pay dividends or repurchase shares at a level anticipated by our shareholders, which could reduce shareholder returns

Risks Related to General Economic Conditions

1. 28We are subject to economic and geopolitical risk, health and social events or conditions, the business cycles and credit risk of our customers and the overall level of consumer, business and government spending, which could adversely affect our business, financial condition, results of operations and cash flows
2. 29Investor and other stakeholder scrutiny related to our sustainability practices, and our disclosed performance and aspirations for these practices, may increase costs and expose us to numerous risks
3. 30If we lose key personnel or are unable to attract and hire additional qualified personnel as we grow, our business could be adversely affected
4. 31The costs and effects of pending and future litigation, investigations or similar matters, or adverse facts and developments related thereto, could materially affect our business, financial condition, results of operations and cash flows