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Risks

• Our business is being adversely impacted, and is expected to continue to be adversely impacted, by the coronavirus (COVID-19) pandemic.
• Demand for our aircraft products is cyclical and lower demand adversely affects our financial results.
• We have customer concentration with the U.S. Government; reduction in U.S. Government defense spending can adversely affect our results of operations and financial condition.
• U.S. Government contracts can be terminated at any time and may contain other unfavorable provisions.
• As a U.S. Government contractor, we are subject to procurement rules and regulations; our failure to comply with these rules and regulations could adversely affect our business.
• As a U.S. Government contractor, our businesses and systems are subject to audit and review by the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA).
• The use of certain contract award types by the U.S. Government increases pricing pressure and cost.
• The market for U.S. Government defense business is highly competitive which may affect our ability to win new contracts for major government programs and result in reduced future revenues.
• Developing new products and technologies entails significant risks and uncertainties.
• We have made and may continue to make acquisitions that increase the risks of our business.
• Our business could be negatively impacted by cybersecurity threats and other disruptions.
• Failure to perform by our subcontractors or suppliers could adversely affect our performance.
• We are subject to the risks of doing business in foreign countries that could adversely impact our business.
• Natural disasters or other events outside of our control may disrupt our operations, adversely affect our results of operations and financial condition, and may not be fully covered by insurance.
• If our Finance segment has difficulty collecting on its finance receivables, our financial performance could be adversely affected.
• We periodically need to obtain financing and such financing may not be available to us on satisfactory terms, if at all.
• Unanticipated changes in our tax rates or exposure to additional income tax liabilities could affect our profitability.
• We are subject to increasing compliance risks that could adversely affect our operating results.
• Certain of our products are subject to laws regulating consumer products and could be subject to repurchase or recall as a result of safety issues.
• Increased regulation and stakeholder expectations related to global climate change could negatively affect our operating results.
• We are subject to legal proceedings and other claims.
• Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our business and our customers.
• Our success is highly dependent on our ability to hire and retain a qualified workforce.
• The increasing costs of certain employee and retiree benefits could adversely affect our results.
• Our business could be adversely affected by strikes or work stoppages and other labor issues.