Jabil (JBL) risk factors, 2024 10-K

Business and Operational Risks

1. 01Because we depend on a limited number of customers, a reduction in sales to any one of those customers has and could again cause a significant decline in our revenue
2. 02Customer relationships with emerging companies present more risks than with established companies
3. 03The success of our business is dependent on our ability to keep pace with technological changes and competitive conditions in our industry and our ability to effectively adapt our services as our customers react to technological changes and competitive conditions in their respective industries
4. 04Introducing new business models or programs requiring implementation of new competencies, such as new process technologies and our development of new products or services, has and could affect our operations and financial results
5. 05We compete with numerous other diversified manufacturing service providers, electronic manufacturing services, design providers, and others
6. 06Our business has and could be adversely affected by any delays, or increased costs, resulting from common carrier or transportation issues
7. 07We may not be able to maintain our engineering, technological, and manufacturing expertise
8. 08We depend on attracting and retaining officers, managers, and skilled personnel
9. 09We derive a substantial majority of our revenues from our international operations, which are subject to a number of different risks and often require more management time and expense than our domestic operations
10. 10Energy price increases or shortages may negatively impact our results of operations
11. 11We have on occasion not achieved, and may not in the future achieve, expected profitability from our acquisitions; divestitures may adversely affect our business, reputation, financial condition, results of operations, or cash flows
12. 12We face risks arising from the restructuring of our operations
13. 13Disruptions to our information systems, including security breaches, losses of data or outages, and other security issues, have and could in the future adversely affect our operations

Regulatory Risks

1. 14If we manufacture products containing design or manufacturing defects, demand for our services may decline, our reputation may be damaged, and we may be subject to liability claims
2. 15Compliance or the failure to comply with current and future environmental, health and safety, product stewardship, and producer responsibility laws or regulations could cause us significant expense
3. 16We are subject to litigation and proceedings, which may result in substantial expenses, settlement costs, or judgments; require the time and attention of key management resources; and result in adverse publicity, any of which may negatively impact our financial performance
4. 17Our operations result in exposure to intellectual property claims
5. 18The success of certain aspects of our business depends in part on our ability to obtain, protect, and leverage intellectual property rights

Financial Risks

1. 19Exposure to financially troubled customers or suppliers may adversely affect our financial results
2. 20When financial markets experience significant turmoil, the financial arrangements we may need to enter into, refinance or repay and our customers may be adversely affected
3. 21We are subject to the risk of increased taxes
4. 22Our credit rating may be downgraded
5. 23The Company has a number of debt facilities. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” and Note 7 – “Notes Payable and Long-Term Debt” to the Consolidated Financial Statements for further details
6. 24An adverse change in the interest rates for our borrowings has and could adversely affect our financial condition
7. 25We are subject to risks of currency fluctuations and related hedging operations
8. 26An impairment in the value of our assets would reduce the value of our assets and reduce our net income in the year in which the write-off occurs
9. 27Changes in financial accounting standards or policies have affected, and in the future may affect, our reported financial condition or results of operations
10. 28We are subject to risks associated with natural disasters, climate change, and global events
11. 29Expectations relating to environmental, social, and governance considerations expose the Company to potential liabilities, increased costs, reputational harm, and other adverse effects on the Company’s business