10-K FY 2022 FINAL MOOG Inc - 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,
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, antibribery, privacy regulations and anti-boycott provisions. From time to time, we have in the past filed, and may in the
future 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 when 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.
We may face reputational, regulatory or financial risks from a perceived, or an actual, failure to achieve our
sustainability goals. The increased focus on sustainability practices and disclosures is rapidly evolving, as is the
criteria to measure our sustainability performance; both of which could result in greater expectations and may cause
us to undertake costly initiatives to satisfy the evolving criteria. As we advance our sustainable business model, we
are pursuing programs that we believe will improve our environmental practices, social engagement and how we
govern ourselves. We periodically publish information about our sustainability goals, standards and frameworks.
Achievement of these objectives is subject to risks and uncertainties, many of which are outside of our direct control,
and it is possible we may fail, or be perceived to have failed, in the achievement of our sustainability goals. Also,
certain customers, associates, shareholders, investors, suppliers, business partners, government agencies and nongovernmental organizations may not be satisfied with our sustainability efforts. A failure or perceived failure of our
sustainability goals could negatively affect our reputation and our results of operations.
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