Oshkosh (OSK) risk factors, FY2024 10-K

Business and Operational Risks

1. 01Our markets are highly cyclical. Declines in these markets could have a material adverse effect on our operating performance
2. 02Our performance under the United States Postal Service (USPS) contract may not be what we expect
3. 03The USPS ordering fewer units than we expect which could result in an impairment of our deferred contract asset
4. 04Warranty costs may be higher than we anticipate
5. 05Changes in trade policies and other factors beyond our control may adversely impact our results
6. 06Fluctuations in prices of raw materials and other inputs may adversely impact our results
7. 07We are dependent upon third-party suppliers, making us vulnerable to supply shortages and price increases
8. 08Labor issues may adversely impact our results
9. 09Our dependency on contracts with U.S. and foreign government agencies subjects us to a variety of risks that could materially reduce our revenues or profits
10. 10We must spend significant sums on product development and testing, bid and proposal activities, and pre-contract engineering, tooling and design activities in competitions to have the opportunity to be awarded these contracts
11. 11Certain of our U.S. government contracts could be delayed or terminated, and all such contracts expire in the future and may not be replaced, which could reduce revenues that we expect under the contracts and negatively affect margins in our Defense segment
12. 12Our results could be adversely affected by severe weather, natural disasters, and other events in the locations in which we or our customers or suppliers operate
13. 13Consolidation within our customer and dealer bases may impact our strategy, pricing and product margins
14. 14Disruptions within our dealer network could adversely affect our business
15. 15We face significant competition in the markets we serve
16. 16We may not realize all of the anticipated benefits of our acquisitions
17. 17If we are unable to continue to enhance existing products and develop new products that respond to customer needs and preferences, we may experience a decrease in demand for our products and our business could suffer
18. 18We are subject to fluctuations in exchange rates associated with our non-U.S. operations that could adversely affect our results of operations and may significantly affect the comparability of our results between financial periods
19. 19We may not be able to expand international operations or increase sales and profitability consistent with our growth targets

Financial Risks

1. 20We are subject to changes in contract estimates
2. 21We may experience losses in excess of our recorded reserves for doubtful accounts and guarantees of indebtedness of others
3. 22An impairment in the carrying value of goodwill and other indefinite-lived intangible assets could negatively affect our operating results
4. 23Financing costs and restrictive covenants in our current debt facilities could limit our flexibility in managing our business and increase our vulnerability to general adverse economic and industry conditions
5. 24Additional liabilities relating to changes in tax rates or exposure to additional income tax liabilities could adversely impact our financial condition and cash flow

Cybersecurity Risks

1. 25Increased cybersecurity threats and more sophisticated computer crime pose a risk to our systems, networks, operations, products and services

Legal and Regulatory Risks

1. 26Our international sales and operations subject us to risks that may have a material adverse effect on our business
2. 27We may be required to make material expenditures or incur additional liabilities to comply with changes in environmental laws or climate change regulations or to meet the increasing societal expectations on companies to address climate change