FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 16
Table of Contents
Government regulations could limit our ability to sell our products outside the United States and otherwise
adversely affect our business. Our failure to obtain, or fully adhere to the limitations contained in the requisite
licenses, meet registration standards or comply with other government export regulations would hinder our ability to
generate revenues from the sale of our products outside the United States. In addition, the U.S. Government has
established and, from time to time, revises sanctions that restrict or prohibit U.S. companies and their subsidiaries
from doing business with certain foreign countries, entities and individuals. The absence of comparable restrictions on
competitors in other countries may adversely affect our competitive position. In order to sell our products in European
Union countries, we must satisfy certain technical requirements. If we are unable to comply with those requirements
with respect to a significant quantity of our products, our sales in Europe would be restricted. Doing business
internationally also subjects us to numerous U.S. and foreign laws and regulations, including regulations relating to
import-export control, technology transfer restrictions, anti-bribery, privacy regulations and anti-boycott provisions.
From time to time, we may file voluntary disclosure reports with the U.S. Department of State and the Department of
Commerce regarding certain violations of U.S. export laws and regulations discovered by us in the course of our
business activities, employee training or internal reviews and audits. To date, our voluntary disclosures have not
resulted in a fine, penalty, or export privilege denial or restriction that has materially impacted our financial condition or
ability to export. Our failure, or failure by an authorized agent or representative that is attributable to us, to comply with
these laws and regulations could result in administrative, civil or criminal liabilities. In the extreme case, these failures
could result in financial penalties, suspension or debarment from government contracts or suspension of our export
privileges, which could have a material adverse effect on us. For our sales mix by country, see Note 21, Segments, of
Item 8, Financial Statements and Supplementary Data, of this report..
We are involved in various legal proceedings, the outcome of which may be unfavorable to us. Our business
may be adversely impacted by the outcome of legal proceedings and other contingencies that cannot be predicted
with certainty. We estimate loss contingencies and establish reserves based on our assessment where liability is
deemed probable and reasonably estimable given the facts and circumstances known to us at a particular point in
time. Subsequent developments may affect our assessment and estimates of the loss contingencies recognized as
liabilities.
Our operations are subject to environmental laws and complying with those laws may cause us to incur
significant costs. Our operations and facilities are subject to numerous stringent environmental laws and regulations.
Although we believe that we are in material compliance with these laws and regulations, future changes in these laws,
regulations or interpretations of them, or changes in the nature of our operations may require us to make significant
capital expenditures to ensure compliance. We have been, and are currently involved in, environmental remediation
activities. The cost of these activities may become significant depending on the discovery of additional environmental
exposures at sites that we currently own or operate, at sites that we formerly owned or operated, or at sites to which
we have sent hazardous substances or wastes for treatment, recycling or disposal.
GENERAL RISKS
Future terror attacks, war, natural disasters or other catastrophic events beyond our control could negatively
impact our business. Terror attacks, war or other civil disturbances, natural disasters and other catastrophic events
could lead to economic instability and decreased demand for commercial products, which could negatively impact our
business, financial condition, results of operations and cash flows. From time to time, terrorist attacks worldwide have
caused instability in global financial markets and the aviation industry. Also, our facilities and suppliers are located
throughout the world and could be subject to damage from fires, floods, earthquakes or other natural or man-made
disasters. Although we carry third party property insurance covering these and other risks, our inability to meet
customers' schedules as a result of a catastrophe may result in the loss of customers or significantly increase costs,
including penalty claims under customer contracts.
Our performance could suffer if we cannot maintain our culture as well as attract, retain and engage our
employees. We believe our culture is our strongest asset and is the foundation of our business. Our culture focuses
on trust, respect, collaboration, confidence and empowerment. Our strong culture allows us to recruit and retain toplevel talent. Focusing on talent in the organization is one of our three company-wide initiatives, along with lean and
innovation. We believe our employees and experienced leadership group are competitive advantages, as the best
people, over time, produce the best results. If we are unable to carry these values forward by not attracting the most
talented candidates, by not retaining and engaging our global workforce including our senior management team, or by
not investing in their talent and personal development, our operational and financial performances could suffer.
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