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Financial report summary
?Risks
- Economic recessions and other factors that reduce freight volumes, both in North America and Europe, could have a material adverse impact on our business.
- Our company-specific action plan to enhance network efficiencies and drive growth in our North American LTL business, and other management actions to improve our North American LTL business, may not be effective or timely, and may not improve our results of operations or cash flow from operations as planned.
- Our profitability may be materially adversely impacted if our investments in equipment and service centers do not match customer demand for these resources or if there is a decline in the availability of funding sources for these investments.
- Failure to successfully implement our cost and revenue initiatives could cause our future financial results to suffer.
- Our past acquisitions, as well as any acquisitions that we may complete in the future, may be unsuccessful or result in other risks or developments that adversely affect our financial condition and results.
- We may not successfully manage our growth.
- We may sell or otherwise divest our European business, which may have an adverse effect on our results of operations and cash flows, the market price of our common stock, and on our North American LTL business.
- If we determine that our goodwill has become impaired, we may incur impairment charges, which would negatively impact our operating results.
- We have recently experienced changes in management and our future success will depend in part on our ability to manage these transitions successfully.
- Issues related to the intellectual property rights on which our business depends, whether related to our failure to enforce our own rights or infringement claims brought by others, could have a material adverse effect on our business, financial condition and results of operations.
- Our overseas operations are subject to various operational and financial risks that could adversely affect our business.
- We are exposed to currency exchange rate fluctuations because a significant proportion of our assets, liabilities and earnings are denominated in foreign currencies.
- Volatility in fuel prices impacts our fuel surcharge revenue and may impact our profitability.
- Productivity of our fleet historically decreases during the winter season and extreme or unusual weather conditions, whether due to climate change or otherwise, can disrupt our operations, impact freight volumes, and increase our costs, all of which could have a material adverse effect on our business results.
- Our reputation could be harmed if we fail to satisfy evolving stakeholder expectations regarding environmental, social and governance matters.
- Our business will be seriously harmed if we fail to develop, implement, maintain, upgrade, enhance, protect and integrate our information technology systems, including those systems of any businesses that we acquire.
- A significant breach of our information security systems, networks or processes could materially adversely affect our business.
- A failure of our information technology infrastructure may materially adversely affect our business.
- Our indebtedness could adversely affect our financial condition.
- The execution of our strategy could depend on our ability to raise capital in the future, and our inability to do so could prevent us from achieving our growth objectives.
- We may be adversely affected by interest rate changes because of our floating rate credit facilities.
- We depend on third parties in the operation of our business.
- Increases in driver compensation and difficulties with attracting and retaining drivers could adversely affect our revenues and profitability.
- If we are unable to retain our key employees, our business, results of operations and financial position could be adversely affected.
- Our business may be materially adversely affected by labor disputes.
- Efforts by labor organizations to organize employees at certain locations in North America, if successful, may impact costs and efficiencies at those locations.
- We may be unable to achieve some or all of the benefits that we expect to achieve from the spin-offs of GXO or RXO and may be required to indemnify GXO or RXO for certain liabilities.
- If the spin-offs of GXO and/or RXO, together with certain related transactions, do not qualify as transactions that are generally tax-free for U.S. federal income tax purposes, XPO and XPO stockholders could be subject to significant tax liabilities. In addition, if certain internal restructuring transactions were to fail to qualify as transactions that are generally tax-free for U.S. federal or non-U.S. income tax purposes, we could be subject to significant tax liabilities.
- We are involved in multiple lawsuits and are subject to various claims that could result in significant expenditures and impact our operations.
- An increase in the number or severity of self-insured claims or an increase in insurance premiums could have an adverse effect on us.
- We are subject to risks associated with defined benefit plans for our current and former employees, which could have a material adverse effect on our earnings and financial position.
- Changes in income tax regulations for U.S. and multinational companies may increase our tax liability.
- We are subject to governmental regulations, political conditions, and emissions-control regulations which could substantially increase operating expenses or negatively impact our business.
- Failure to comply with trade compliance and anti-corruption laws and regulations applicable to our operations could expose us to potential fines, criminal sanctions, or reputational harm.
- We operate in a highly competitive industry and, if we are unable to adequately address factors that may adversely affect our revenue and costs, our business could suffer.