10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 11
Table of Contents
If we are unable to adequately enforce and protect our intellectual property or defend against assertions of
infringement, our business and our ability to compete could be harmed. Protecting our intellectual property is
critical in order to maintain a competitive advantage. We therefore rely on internally developed and acquired patents,
trademarks, copyrights, trade secrets, proprietary know-how to establish and protect our technologies and products.
However, these measures afford only limited protection, and our patent rights and other intellectual property
protections have been in the past, and may be in the future, infringed, misappropriated, misrepresented, copied
without authorization, circumvented or invalidated in the U.S. or in foreign countries that do not offer the same level of
intellectual property protections. Also, as our patents and other intellectual property protections expire, we may face
increased competition. Additionally, we cannot be assured that our existing or planned products do not, or will not,
infringe on the intellectual property rights of others or that others will not claim such infringement. When others
infringe on our intellectual property rights, the value of our products is diminished, and we may incur substantial
litigation costs to enforce our rights. Litigation could also divert management's focus and resources away from
operations. If we are unable to adequately enforce and protect our intellectual property or defend against assertions of
infringement, we could face reputational harm and our inability to defend against these scenarios could have an
adverse effect on our competitive position, our business operations and financial condition.
Our sales and earnings may be affected if we cannot identify, acquire or integrate strategic acquisitions, or as
we conduct divestitures. Acquisitions are an element of our growth strategy as we opportunistically make
investments in our businesses. Our historical growth has depended, and our future growth is likely to depend, in part,
on our ability to successfully identify, acquire and integrate acquired businesses. We intend to seek additional
acquisition opportunities throughout the world, both to expand into new markets and to enhance our position in
existing markets. Growth by acquisition involves risk that could adversely affect our financial condition and operating
results. We may not know the potential exposure to unanticipated liabilities. Additionally, the expected benefits or
synergies might not be fully realized, integrating operations and personnel may be slowed and key employees,
suppliers or customers of the acquired business may depart. As a result of our ongoing operational assessment, we
may continue to divest assets or businesses if we deem the operations as non-strategic or no longer support the level
of customer demand. Also, divestitures could adversely affect our profitability and, under certain circumstances,
require us to record impairment charges or losses as a result of a transaction. In pursuing acquisition opportunities,
integrating acquired businesses or divesting business operations, management's time and attention may be diverted
from our core business, while consuming resources and incurring expenses for these activities.
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