Otis Worldwide (OTIS) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01We may be affected by global economic conditions in general and conditions in the construction and infrastructure industries in particular
2. 02Our operations are subject to natural and man-made unexpected events that may increase our costs, limit access to building sites, interrupt production or our supply chain or otherwise adversely affect our business, results of operations or financial condition41% rewritten
3. 03Our international operations subject us to risk as our results of operations may be adversely affected by changes in local and regional economic conditions, such as fluctuations in exchange rates and changes in credit conditions
4. 04Our international operations subject us to risks associated with government policies on international trade and investments and risks in general and particularly in China54% rewritten
5. 05Our international operations subject us to risks associated with emerging markets
6. 06Our international operations subject us to risks associated with geopolitical conflicts23% rewritten
7. 07Adverse changes in our relationships with, or the financial condition, performance or purchasing patterns, or compliance practices of, key distributors and agents could adversely affect us
8. 08We design, manufacture, install and service products that incorporate advanced technologies; the introduction of new products and technologies, including artificial intelligence, involves risks, and we may not realize the degree or timing of benefits initially anticipated31% rewritten
9. 09We operate in a competitive environment and our profitability depends on our ability to accurately estimate the costs and timing of providing our products and services
10. 10We may not realize expected benefits from our cost reduction, restructuring and transformation efforts, including UpLift, and our profitability may be negatively impacted or our business otherwise might be adversely affected21% rewritten
11. 11We operate in challenging markets for talent and may fail to attract, develop and retain key personnel
12. 12Quarterly cash dividends and share repurchases may be discontinued, accelerated or modified, are subject to a number of uncertainties and may affect the price of Common Stock
13. 13We engage in acquisitions and divestitures, and may encounter difficulties integrating acquired businesses with, or disposing of businesses from, our current operations; therefore, we may not realize the anticipated benefits of these acquisitions and divestitures
14. 14We are party to joint ventures which may not be successful and may expose us to special risks and restrictions
15. 15Additional tax expense or additional tax exposures could affect our future profitability
16. 16Our defined benefit pension plans are subject to financial market risk that could adversely affect our results
17. 17We are subject to litigation, product safety and other legal and compliance risks21% rewritten
18. 18We are impacted by evolving stakeholder interest in sustainability and responsibility mattersNew
19. 19Information security, data privacy and identity protection may require significant resources and present certain risks to our business, reputation and financial condition
20. 20Our business and financial performance depend on continued substantial investment in information technology infrastructure, which may not yield anticipated benefits, and may be adversely affected by cyberattacks on information technology infrastructure and products and other business disruptions
21. 21We depend on our intellectual property, and have access to certain intellectual property and information of our customers, suppliers and distributors; infringement or failure to protect our intellectual property could adversely affect our future growth and success

Risks Related to Our Common Stock

1. 22Anti-takeover provisions could enable our Board of Directors to resist a takeover attempt by a third party and limit the power of our shareholders
2. 23Our amended and restated bylaws designate the state courts within the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our shareholders, which could discourage lawsuits against Otis and our directors and officers