Ingersoll Rand (IR) risk factors, FY2024 10-K

Risks Related to Our Business

1. 01We have exposure to the risks associated with instability in the global economy and financial markets, which may negatively impact our revenues, liquidity, suppliers and customers
2. 02More than half of our sales and operations are in non-U.S. jurisdictions and we are subject to the economic, political, regulatory and other risks of international operations
3. 03Information systems failure or disruption, due to cyber terrorism or other actions, may adversely impact our business and result in financial loss to the Company or liability to our customers
4. 04Acquisitions, including integrating such acquisitions, and dispositions create certain risks and may affect our operating results
5. 05The nature of our products creates the possibility of significant product liability, warranty claims, and product recalls, which could harm our business
6. 06A natural disaster, catastrophe, pandemic, or other event could adversely affect our operations
7. 07Large or rapid increases in the cost of raw materials and component parts, substantial decreases in their availability or our dependence on particular suppliers of raw materials and component parts could materially and adversely affect our operating results
8. 08We face competition in the markets we serve, which could materially and adversely affect our operating results
9. 09Our results of operations are subject to exchange rate and other currency risks. A significant movement in exchange rates could adversely impact our results of operations and cash flows
10. 10If we are unable to develop new products and technologies, our competitive position may be impaired, which could materially and adversely affect our sales and market share
11. 11Shareholder, customer and regulatory agency emphasis on environmental, social, and governance responsibility may impose additional costs on us or expose us to new risks
12. 12Uncertainties with respect to the development, and use of artificial intelligence in our business and products may result in harm to our business and reputation
13. 13Our business could suffer if we experience employee work stoppages, union and work council campaigns or other labor difficulties
14. 14Changes in tax laws and regulations, or adverse determinations by taxing or other governmental authorities could increase our effective tax rate and cash taxes paid or otherwise affect our financial condition or operating results
15. 15Our success depends on our ability to attract, retain and develop key personnel and other talent throughout the Company
16. 16The risk of non-compliance with U.S. and foreign laws and regulations applicable to our international operations could have a significant impact on our results of operations, financial condition or strategic objectives
17. 17Third parties may infringe upon our intellectual property or may claim we have infringed their intellectual property, and we may expend significant resources enforcing or defending our rights or suffer competitive injury
18. 18The loss of, or disruption in, our distribution network could have a negative impact on our abilities to ship products, meet customer demand and otherwise operate our business
19. 19Cost overruns, delays, penalties or liquidated damages could negatively impact our results, particularly with respect to fixed-price contracts for custom engineered products
20. 20Our operating results could be adversely affected by a loss or reduction of business with key customers or consolidation or the vertical integration of our customer base
21. 21Credit and counterparty risks could harm our business
22. 22A significant portion of our assets consists of goodwill and other intangible assets, the value of which may be reduced if we determine that those assets are impaired
23. 23Environmental compliance costs and liabilities could adversely affect our financial condition
24. 24We face risks associated with our pension and other postretirement benefit obligations

Risks Related to Our Indebtedness

1. 25Our indebtedness could have important adverse consequences and adversely affect our financial condition
2. 26We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful
3. 27Despite our level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt, including off-balance sheet financing, contractual obligations and general and commercial liabilities. This could further exacerbate the risks to our financial condition
4. 28Our fixed rate to floating rate swap contracts expose us to interest rate risk. If interest rates increase, our debt service obligations on the variable rate will increase and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease
5. 29If the syndicate of financial institutions which are parties to our New Revolving Credit Facility (as defined herein) fail to extend credit under our New Revolving Credit Facility, our liquidity and results of operations may be adversely affected