Xylem (XYL) risk factors, FY2024 10-K

Risks Related to Geopolitical, Macroeconomic and Industry Factors

1. 01Industry and economic conditions may adversely affect our markets and our customers’ operating conditions and demand
2. 02Geopolitical, regulatory, economic, foreign exchange and other risks associated with our global sales, supply chain and operations may adversely affect our business
3. 03Inflation, tariffs, customs duties and other increases or fluctuations in manufacturing and operating costs have, and could continue to, adversely affect our cash flows and results of operations

Risks Related to Our Business and Operations

1. 04We may be unable to compete successfully in our markets or develop and commercialize innovative and disruptive solutions and technologies
2. 05Cybersecurity incidents and related data breaches or other disruptions involving our enterprise information technology and operations, our connected products and services, or information technology on which we or our customers rely, could materially and adversely affect our business
3. 06Lack of or delay in availability of products, parts, raw materials and energy from our supply chain or the inability of suppliers to meet delivery and other requirements, could adversely affect our business
4. 07A material disruption to any of our facilities or operations, or that of third parties upon which we rely, may adversely affect our business and financial performance
5. 08We may not realize some or all the expected benefits and synergies from our acquisition of Evoqua
6. 09longer to realize, may not be fully realized, or may cost more than expected, which could materially and adversely affect our business, results of operations or financial condition, as well as adversely impact our share price
7. 10We may be unable to successfully execute large projects or meet customers’ timelines, budget, performance and safety requirements
8. 11We may be unable to retain our existing leadership, engineering, technology, sales, services and other key talent or attract new qualified talent with diverse backgrounds, experiences and perspectives
9. 12Defects, unanticipated or improper use or inadequate disclosures concerning our products could adversely affect our business, reputation and financial condition
10. 13We may not achieve some of the expected benefits of our simplification and productivity initiatives or restructuring and realignment plans, or such initiatives and plans may adversely affect our business
11. 14or inefficiencies during transitional periods. Transforming, realigning and restructuring our company require a significant amount of management and other employees' time and focus, which may divert attention from operating and growing our business
12. 15The execution of our strategy includes acquisitions and divestitures, which we may be unable to successfully execute
13. 16A significant portion of our products and offerings in our Measurement and Control Solutions segment are affected by the availability, regulation of and interference with radio spectrum that we use
14. 17Weather conditions, including the effects of climate change and associated efforts by governmental or regulatory authorities to mitigate such effects, may cause volatility in our served markets and demand for our products
15. 18Our sustainability commitments, goals, targets, objectives and initiatives, and our public statements and disclosures regarding them or in response to mandatory reporting standards, expose us to numerous risks
16. 19stakeholders have increasingly expressed or pursued opposing views, legal and investment expectations around sustainability initiatives, including the enactment or proposal of “anti-ESG” legislation, executive orders or policies and adverse social media campaigns

Risks Related to Financial and Tax

1. 20Our business is subject to foreign currency exchange rate fluctuations
2. 21Our financial results may fluctuate from period to period and can be difficult to predict
3. 22We may incur impairment charges for our goodwill and other indefinite-lived intangible assets
4. 23Changes in our effective tax rates and tax expenses may adversely affect our financial results
5. 24Our pension and other defined benefit plans are subject to regulatory and financial market risks

Risks Related to Legal and Regulatory

1. 25Failure to comply with laws, regulations and policies related to our business conduct, including the U.S. Foreign Corrupt Practices Act, other applicable anti-corruption laws, trade regulations, and data privacy and security laws, could have a material adverse impact on us
2. 26Failure to comply with, and the cost of complying with, laws, regulations, policies and taxes applicable to our operations, products and services, including those involving the environment, climate change, and health and safety, could have a material adverse impact on us
3. 27We face risks related to legal and regulatory proceedings
4. 28Infringement or expiration of our intellectual property rights, or allegations that we have infringed upon the intellectual property rights of third parties could negatively affect us