Xerox (XRX)

Risks

• The effects of pandemics, such as the COVID-19 pandemic, may materially affect how we and our customers operate our businesses, and the duration and extent to which a pandemic may impact our future results of operations and overall financial performance is uncertain.
• If we are unsuccessful at addressing our business challenges, our business and results of operations may be adversely affected and our ability to invest in and grow our business could be limited.
• If we fail to successfully develop new products, technologies and service offerings and protect our intellectual property rights, we may be unable to retain current customers and gain new customers and our revenues would decline.
• We need to successfully manage changes in the printing environment and market because our operating results may be negatively impacted by lower equipment placements and usage trends.
• We face significant competition and our failure to compete successfully could adversely affect our results of operations and financial condition.
• Our profitability is dependent upon our ability to obtain adequate pricing for our products and services and to improve our cost structure.
• We have outsourced a significant portion of our manufacturing operations and increasingly rely on third-party manufacturers, subcontractors and suppliers.
• We may be unable to attract and retain key personnel while our business model undergoes significant changes.
• We may not achieve some or all of the expected benefits of our restructuring and transformation plans and our restructuring may adversely affect our business.
• Our government contracts are subject to termination rights, audits and investigations, which, if exercised, could negatively impact our reputation and reduce our ability to compete for new contracts.
• Our ability to fund our customer financing activities at economically competitive levels depends on our ability to borrow and the cost of borrowing in the credit markets.
• Our significant debt could adversely affect our financial health and pose challenges for conducting our business.
• We need to maintain adequate liquidity in order to meet our operating cash flow requirements, repay maturing debt and meet other financial obligations, such as payment of dividends to the extent declared by our Board of Directors. If we fail to comply with the covenants contained in our various borrowing agreements, it may adversely affect our liquidity, results of operations and financial condition.
• Our financial condition and results of operations could be adversely affected by employee benefit-related funding requirements.
• Our business, results of operations and financial condition may be negatively impacted by conditions abroad, including local economic and political environments, fluctuating foreign currencies and shifting regulatory schemes.
• Tariffs or other restrictions on foreign imports could negatively impact our financial performance.
• We operate globally and changes in tax laws could adversely affect our results.
• We are subject to breaches of our security systems, cyber-attacks and service interruptions, which could expose us to liability, litigation, regulatory action and damage our reputation.
• We are subject to laws of the United States and foreign jurisdictions relating to individually identifiable information, and failure to comply with those laws could subject us to legal actions and negatively impact our operations.
• Our business, results of operations and financial condition may be negatively impacted by legal and regulatory matters.