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You should carefully consider the risks and uncertainties described below and the other information in this Annual Report before making an investment in our common stock.
−Removed: Our business, financial condition, results of
−Removed: operations, or prospects could be materially and adversely affected if any of these risks occurs, and as a result, the market price of our common stock could decline and you could lose all or part of your investment.
+Added: Our business, financial condition, results of operations, or prospects could be materially and adversely affected if any of these risks occurs, and as a result, the market price of our common stock could decline and you could lose all or part of your investment.
This Annual Report also contains forward-looking statements that involve risks and uncertainties.
−Removed: See “Special Note Regarding Forward-Looking Statements.” Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors, including those set forth below.
+Added: See “Special Note Regarding Forward-Looking Statements” in this Annual Report.
+Added: Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors, including those set forth below.
Risks Related to AerSale’s Business and Industry
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We source parts and components for our business from various suppliers around the world.
−Removed: Global supply chain and labor markets are continuing to experience high levels of disruption, causing significant materials and parts shortages, as well as delivery delays, labor shortages, distribution issues, energy cost increases and price increases.
−Removed: Current geopolitical conditions, including sanctions and other trade restrictive actions and strained intercountry relations, are contributing to these issues.
+Added: Current geopolitical conditions, including sanctions and other trade restrictive actions and strained intercountry relations, could cause significant materials and parts shortages, as well as delivery delays, labor shortages, distribution issues, energy cost increases and price increases.
These issues could lead to significant supplier performance failures and delays.
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As a provider of products and services to the commercial aviation industry, we are generally affected by overall economic conditions of that industry.
−Removed: The commercial aviation industry is historically cyclical and has been negatively affected in the past by geopolitical events, such as ongoing conflicts (including between Russia and Ukraine and between Israel and Hamas), terrorism, high fuel and oil prices, labor issues, lack of capital, and weak economic conditions.
−Removed: As a result of these and other events, from time to time certain of our customers have filed for bankruptcy protection or ceased operation.
+Added: The commercial aviation industry is historically cyclical and has been negatively affected in the past by geopolitical events, such as ongoing conflicts (including between Russia and Ukraine and between Israel and Hamas), escalating tensions (such as between China and the U.S.), terrorism, high fuel and oil prices, labor issues, lack of capital, continued inflation, high interest rates, and weak economic conditions.
+Added: As a result of these and other events, from time to time certain of our customers have filed for bankruptcy protection or ceased operations.
The impact of instability in the global financial markets has led, and may in the future lead, airlines to reduce domestic or international capacity.
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● increased in-house maintenance by airlines;
−Removed: ● climate change, environmental catastrophes and government regulations implemented to address them and;
−Removed: ● acts of God.
+Added: ● climate change, environmental catastrophes and government regulations implemented to address them;
+Added: ● acts of God, such as an earthquake, hurricane, fire, flood, tornado or other natural disaster.
Our operating results vary, and comparisons to results for preceding periods may not be meaningful.
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● the timing and number of purchases and sales of Flight Equipment;
−Removed: ● the timing and amount of maintenance reserve revenues recorded resulting from the termination of long term leases, for which significant amounts of maintenance reserves may have accumulated;
+Added: ● the timing and amount of maintenance reserve revenue recorded resulting from the termination of long term leases, for which significant amounts of maintenance reserves may have accumulated;
● the termination, or announced termination of production, of particular types of Flight Equipment;
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● the timing of necessary overhauls of Flight Equipment.
−Removed: These risks may reduce our Flight Equipment utilization rates, lease margins, maintenance reserve revenues and proceeds from Flight Equipment sales, and may result in higher legal, technical, maintenance, storage, insurance and other costs related to repossession and Flight Equipment being off-lease.
+Added: These risks may reduce our Flight Equipment utilization rates, lease margins, maintenance reserve revenue and proceeds from Flight Equipment sales, and may result in higher legal, technical, maintenance, storage, insurance and other costs related to repossession and Flight Equipment being off-lease.
As a result of the foregoing and other factors, the availability of Flight Equipment for lease or sale periodically experiences cycles of oversupply and undersupply of given engine or aircraft models.
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When a lessee defaults on its obligations under a lease and does not cure such default in a timely manner, we typically seek to terminate the applicable lease and repossess the leased Flight Equipment.
−Removed: If a defaulting lessee contests the termination and repossession or is under court protection, enforcement of our rights under the lease may be difficult,
−Removed: expensive and time-consuming.
+Added: If a defaulting lessee contests the termination and repossession or is under court protection, enforcement of our rights under the lease may be difficult, expensive and time-consuming.
In the event the Flight Equipment is located outside of the United States, we may need to obtain governmental consents to export the Flight Equipment back to the United States.
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We currently perform MRO activities at six leased locations.
−Removed: Revenues at these facilities fluctuate based on demand for maintenance which, in turn, is driven by the number of aircraft operating and the extent of outsourcing of maintenance activities by airlines.
+Added: Revenue at these facilities fluctuate based on demand for maintenance which, in turn, is driven by the number of aircraft operating and the extent of outsourcing of maintenance activities by airlines.
In addition, certain airlines operate new fleet types and/or newer generation aircraft and we may not have contractual arrangements to service these aircraft, nor technicians trained and certified to perform the required airframe maintenance, repair, and overhaul activities on such aircraft.
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Our ability to manage inventory and meet delivery requirements may be constrained by our suppliers’ ability to adjust delivery of long-lead time products during times of volatile demand.
−Removed: The supply chains for our business could also be disrupted by external events such as natural disasters, extreme weather events, labor disputes, governmental actions and legislative or regulatory changes.
+Added: The supply chains for our business could also be disrupted by external events such as natural disasters, extreme weather events, pandemic or similar health emergencies, labor disputes, governmental actions and legislative or regulatory changes.
As a result, our suppliers may fail to perform according to specifications when required, and we may be unable to identify alternate suppliers or to otherwise mitigate the consequences of their non-performance.
−Removed: Transitions to new suppliers may result in significant costs and delays, including those related to the required recertification of parts obtained from new suppliers with our customers and/or regulatory agencies.
−Removed: Our inability to fill our supply needs could jeopardize our ability to fulfill obligations under customer contracts, which could result in reduced revenues and profits, contract penalties or terminations, and damage to customer relationships.
−Removed: Further, increased costs of such raw materials or components could reduce our profits if we are unable to pass such price increases onto our customers.
+Added: Transitions to new suppliers may result in significant costs
+Added: and delays, including those related to the required recertification of parts obtained from new suppliers with our customers and/or regulatory agencies.
+Added: Our inability to fill our supply needs could jeopardize our ability to fulfill obligations under customer contracts, which could result in reduced revenue and profits, contract penalties or terminations, and damage to customer relationships.
+Added: Further, increased costs of such raw materials or components, including due to tariffs, trade disputes or embargoes, inflation, and rising energy and transportation costs, could reduce our profits if we are unable to pass such price increases onto our customers.
We operate in highly competitive markets, and competitive pressures may adversely affect us.
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Consequently, we are subject to a variety of risks that are specific to international operations, including the following:
−Removed: ● military conflicts, civil strife, and political risks;
+Added: ● military conflicts, ongoing geopolitical tensions, civil strife, and political risks;
● export regulations that could erode profit margins or restrict exports;
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● uncertainties arising from foreign local business practices and cultural considerations;
−Removed: ● changes in United States policies on trade relations and trade policy, including implementation of or changes in trade sanctions (such as those imposed on Russia), tariffs, and embargoes.
+Added: ● changes in United States policies on trade relations and trade policy, including implementation of or changes in trade sanctions (such as those imposed on Russia), tariffs (such as the recently announced tariffs on imports from Canada, Mexico and China that may or may not ultimately become effective), and embargoes.
Measures that we have or will adopt to reduce the potential impact of losses resulting from the risks of doing business internationally may not be adequate, and the regions in which we operate might not continue to be stable enough to allow us to operate profitably or at all.
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In October 2023, a military conflict commenced between Israel and Hamas.
−Removed: The intensity and duration of Israel’s current war against Hamas is difficult to predict, as are such war’s global economic impact;
−Removed: which could include further sanctions, embargoes, regional instability, energy shortages, geopolitical shifts and adverse effects on macroeconomic conditions, security conditions, currency exchange rates and financial markets, and the impact on the Company’s business and operations and on the businesses and operations of the Company’s suppliers, customers and other third parties with which the Company conducts business.
+Added: Although ceasefire negotiations have been underway, whether such negotiations will ultimately be successful in ending the war is difficult to predict, as are such war’s global economic impact, which could include further sanctions, embargoes, regional instability, energy shortages, geopolitical shifts and adverse effects on macroeconomic conditions, security conditions, currency exchange rates and financial markets, and the impact on the Company’s business and operations and on the businesses and operations of the Company’s suppliers, customers and other third parties with which the Company conducts business.
Of note, the Company’s enterprise resource planning vendor and the supplier of most of the components of our EFVS offering designated as AerAware™ are both based in Israel.
Business acquisitions expose us to risks, including the risk that we may be unable to effectively integrate acquired businesses.
−Removed: We have completed multiple acquisitions over the past few years, and have discussions with third parties regarding acquisitions on a regular basis.
+Added: We completed multiple acquisitions during the period 2010 - 2020, and continue to have discussions with third parties regarding acquisitions on a regular basis.
Acquisitions involve risks, including difficulties integrating operations and personnel, the effects of amortization of any acquired intangible assets and the potential impairment of goodwill, and the potential loss of key employees of the acquired business.
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Cybersecurity threats are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to our sensitive information, business e-mail compromises, ransomware attacks, and other electronic security breaches, including at our customers, suppliers, subcontractors, and joint venture partners, that could lead to disruptions in mission critical systems, unauthorized release of confidential or otherwise protected information, and corruption of data.
−Removed: Certain functional areas of our workforce continue to function in a remote work environment, which could heighten the risk of these potential vulnerabilities.
+Added: Certain functional areas of our workforce that had been working remotely have returned to our offices;
+Added: however, any future requirements for them to function in a remote work environment could heighten the risk of these potential vulnerabilities.
The procedures and controls we utilize to monitor and mitigate these threats may not be sufficient to prevent security threats from materializing.
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Our facilities or our customers’ facilities could be damaged or disrupted by a natural disaster, war, or terrorist activity.
+Added: For example, in April 2024, one of our leased secondary parts warehouses in Roswell, New Mexico, which stored various aircraft parts inventory typically sold as USM, was destroyed by a fire.
+Added: While we submitted a claim for the replacement value of the inventory that was destroyed or rendered not sellable due to the fire in the amount of $67.6 million, the cost basis of the destroyed inventory was $6.0 million.
+Added: To date, we have collected a total of approximately $34.6 million in connection with such claim.
A major catastrophe, such as an earthquake, hurricane, fire, flood, tornado, pandemic, or other natural disaster at any of our sites, or war or terrorist activities in any of the areas where we conduct operations, could result in a prolonged interruption of our business.
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In the future, we may form and/or become a member of joint ventures.
−Removed: We may be unable to prevent misconduct or other violations of applicable laws by these joint ventures (including their officers, directors and employees) or our partners.
+Added: We may be unable to prevent misconduct or other violations of applicable laws by these joint ventures (including their officers,
+Added: directors and employees) or our partners.
Improper actions by those with whom or through whom we do business (including our employees, agents, subcontractors, suppliers, business partners and joint ventures) could subject us to administrative, civil or criminal investigations and monetary and non-monetary penalties, including suspension and debarment, which may adversely affect our results of operations and financial condition.
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Reduced flight activity negatively impacts the demand for many of our products and services, and any prolonged reduction could materially and adversely affect our business, operating results, financial condition, and access to sources of liquidity.
−Removed: Moreover, prolonged pandemics, epidemics and similar outbreaks, or the threat thereof, could result in worker absences, lower productivity, voluntary closure of our offices and facilities, travel restrictions for our employees and other disruptions to our business.
+Added: Moreover, prolonged pandemics, epidemics and similar outbreaks, or the threat thereof, could result in worker absences, lower productivity, voluntary closure of our offices and facilities, travel restrictions for our employees and other disruptions to our supply chain and business.
Any of these could have a material adverse effect on our business, financial condition or results of operations.
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Access to the debt and equity capital markets may be limited by various factors, including the condition of overall credit markets, general economic factors, state of the aviation industry, our financial performance, and credit ratings.
−Removed: Debt and equity capital may not continue to be available to us on favorable terms, or at all.
+Added: Debt and equity capital may not continue to be available to us on favorable terms, or at
Our inability to obtain financing on favorable terms may adversely affect our results of operations and financial condition.
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In the event there are deteriorations in business conditions or estimated cash flows beyond amounts previously or currently forecasted, there is a risk of future impairments on our goodwill balance.
−Removed: Our exposure to variable interest rates, foreign currency exchange rates and swap counter party credit risk could materially and adversely affect our business, operating results and financial condition.
+Added: Our exposure to variable interest rates and foreign currency exchange rates could materially and adversely affect our business, operating results and financial condition.
We are exposed to various types of market risk in the normal course of business, including the impact of interest rate changes and foreign currency exchange rate fluctuations.
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Any increase in interest rates would increase our finance expenses relating to our variable rate indebtedness and increase the costs of refinancing our existing indebtedness and issuing new debt.
−Removed: Previously, our Revolving Credit Agreement bore interest at London Interbank Overnight (“LIBOR”) rates.
−Removed: The U.K.’s Financial Conduct Authority, which regulated LIBOR, ended publication of the one-week and two-month USD LIBOR tenors on December 31, 2021, and ended publication of the remaining USD LIBOR tenors on June 30, 2023.
−Removed: Effective March 9, 2023, we amended our Revolving Credit Agreement to replace the benchmark rate from LIBOR to SOFR.
−Removed: Although SOFR has been endorsed by the Alternative Reference Rates Committee, a committee convened by the United States Federal Reserve that includes major market participants, has identified the SOFR, an index calculated by short-term repurchase agreements, backed by Treasury securities, as its preferred alternative rate for LIBOR, it remains uncertain how markets will respond to SOFR or other alternative reference rates following the transition away from the LIBOR benchmarks.
−Removed: The consequences of these developments cannot be entirely predicted and could cause potential increases in interest rates on our floating debt rate.
−Removed: These uncertainties or their resolution also could negatively impact our funding costs, loan and other asset values, asset-liability management strategies and other aspects of our business and financial results.
+Added: Fluctuations in foreign currencies, including devaluations, exchange controls and other restrictions on the repatriation of funds, may affect our operations, liquidity and the value of any cash held outside the U.S.
+Added: in local currency.
+Added: Such fluctuations in foreign currencies, including devaluations, cannot be predicted by us.
+Added: These conditions, as well as any further delays, devaluations, or imposition of more stringent repatriation restrictions, may adversely affect our business and results of operations.
Legal and Regulatory Risks
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The Commerce Department and the U.S.
−Removed: Department of State may, in certain cases, require us to obtain export licenses for certain items exported to foreign countries.
+Added: Department of State may, in certain cases, require us to obtain export licenses for certain items exported to certain foreign countries.
Department of Homeland Security, through the U.S.
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Because of the breadth of these laws and the narrowness of the statutory exceptions and safe harbors available, it is possible that some of our business activities or our business arrangements with third parties could be subject to challenge under one or more of such laws.
−Removed: It is possible that governmental authorities will conclude that our business practices or the business practices of our customers who generate our revenues may not comply with current or future statutes, regulations or case law involving applicable fraud and abuse .
−Removed: If our operations or the operations of our customers who generate our royalties are found to be in violation of any of these laws or any other governmental regulations, we or the customers who generate our revenues may be subject to significant criminal, civil and administrative sanctions, including monetary penalties, damages, fines, disgorgement, and imprisonment.
+Added: It is possible that governmental authorities will conclude that our business practices or the business practices of our customers who generate our revenue may not comply with current or future statutes, regulations or case law involving applicable fraud and abuse.
+Added: If our operations or the operations of our customers are found to be in violation of any of these laws or any other governmental regulations, we or our customers may be subject to significant criminal, civil and administrative sanctions, including monetary penalties, damages, fines, disgorgement, and imprisonment.
Any action against us for violation of these laws, even if we successfully defend against it, could cause us to incur significant legal expenses and divert our management’s attention from the operation of our business.
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We are subject to litigation and regulatory proceedings in the normal course of business and could become subject to additional claims in the future.
−Removed: These proceedings have included, and in the future may include, matters involving personnel and employment issues, workers’ compensation, personal and property injury, disputes relating to acquisitions (including contingent consideration), governmental investigations and other proceedings.
+Added: These proceedings have included, and in the future may include, matters involving personnel and employment issues, workers’ compensation, personal and property injury, governmental investigations and other proceedings.
Some historical and current legal proceedings and future legal proceedings may purport to be brought as class actions on behalf of similarly situated parties including with respect to employment-related matters.
We discuss legal proceedings in Note R – Commitments and Contingencies within our consolidated financial statements and related notes included elsewhere in this Annual Report (the “Consolidated Financial Statements”).
−Removed: Some or all of our expenditures to defend, settle or litigate these matters may
−Removed: not be covered by insurance or could impact our cost and ability to obtain insurance in the future.
−Removed: Litigation can be expensive, lengthy and disruptive to normal business operations, including to our management due to the increased time and resources required to respond to and address the litigation.
+Added: Some or all of our expenditures to defend, settle or litigate these matters may not be covered by insurance or could impact our cost and ability to obtain insurance in the future.
+Added: Litigation can be expensive, lengthy and disruptive to normal business operations, including to our
+Added: management due to the increased time and resources required to respond to and address the litigation.
The results of complex legal proceedings are often uncertain and difficult to predict.
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Certain of our facilities, including facilities acquired and operated by us or one of our subsidiaries, have at one time or another been under active investigation for environmental contamination by federal or state agencies.
−Removed: Under specific environmental laws and regulations, we could be held responsible for all of the costs relating to any contamination at our past or present facilities
−Removed: and at third party waste disposal sites.
+Added: Under specific environmental laws and regulations, we could be held responsible for all of the costs relating to any contamination at our past or present facilities and at third party waste disposal sites.
If we fail to comply with applicable environmental laws and regulations, we could be subject to substantial fines or penalties and to civil and criminal liability.
−Removed: We cannot assess the possible effect of compliance with future environmental requirements, or of future environmental claims for which we may not have adequate indemnification or insurance coverage.
+Added: We cannot assess the possible effect of
+Added: compliance with future environmental requirements, or of future environmental claims for which we may not have adequate indemnification or insurance coverage.
If we were required to pay the expenses related to any future environmental claims for which neither indemnification nor insurance coverage were available, these costs and expenses may adversely affect our results of operations and financial condition.
+Added: We may be adversely affected by global climate change, or by legal, regulatory or market responses to such change.
+Added: Increasing stakeholder environmental, social and governance (“ESG”) expectations, physical and transition risks associated with climate change, and emerging or potential ESG regulation and policy requirements may pose risk to our market outlook, financial outlook, cost of capital and global supply chain, which may impact our ability to achieve long-term business objectives.
+Added: Changes in environmental and climate protection laws or regulations could lead to additional operational restrictions and compliance requirements upon us, our products and/or services, or otherwise could negatively impact our business.
+Added: The cost to comply with new and potential environmental laws and regulations could be substantial for the Company.
Future regulatory developments in the United States and abroad concerning environmental issues such as climate change could adversely affect our operations, and increase operating costs.
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The precise nature of any such requirements and their applicability to us and our customers are difficult to predict, but the impact to us and the aviation industry, including the potential for increased fuel costs, carbon taxes or fees, or a requirement to purchase carbon credits, may adversely affect our results of operations and financial condition
−Removed: We may be adversely affected by global climate change, or by legal, regulatory or market responses to such change.
−Removed: Increasing stakeholder environmental, social and governance (“ESG”) expectations, physical and transition risks associated with climate change, and emerging ESG regulation and policy requirements may pose risk to our market outlook, financial outlook, cost of capital and global supply chain, which may impact our ability to achieve long-term business objectives.
−Removed: Changes in environmental and climate change laws or regulations could lead to additional operational restrictions and compliance requirements upon us, our products and/or services, or otherwise could negatively impact our business.
−Removed: The cost to comply with new and potential environmental laws and regulations could be substantial for the Company.
In October 2016, ICAO passed a resolution adopting the Carbon Offsetting and Reduction Scheme for International Aviation (“CORSIA”), which is a global, market-based emissions offset program to encourage carbon-neutral growth beyond 2020.
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The trading market for our common stock will rely in part on the research and reports that industry or financial analysts publish about us or our business.
−Removed: If our analysts do not continue to cover us, or if no additional analysts commence
−Removed: coverage of us, the trading price of our stock could be negatively affected.
+Added: If our analysts do not continue to cover us, or if no additional analysts commence coverage of us, the trading price of our stock could be negatively affected.
Even with analyst coverage, if one or more of the analysts covering our business downgrade their evaluations of our stock, the price of our common stock could decline.
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Any such sales, including sales of a substantial number of shares or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of our common stock.
+Added: Furthermore, as an alternative to filing a registration statement for certain of our stockholders for the sale of our common stock, we may enter into privately negotiated transactions to repurchase shares held by such stockholders.
We may also issue shares of our common stock or securities convertible into our common stock from time to time in connection with financings, acquisitions, investments, or otherwise.
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Further, our Revolving Credit Agreement limits our ability to pay cash dividends.
−Removed: As an “emerging growth company,” we cannot be certain if the reduced disclosure requirements applicable to “emerging growth companies” will make our common stock less attractive to investors.
−Removed: For as long as we remain an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), we take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies”, including not being required to obtain an assessment of the effectiveness of our internal controls over financial reporting from our independent registered public accounting firm pursuant to Section 404 (“Section 404”) of the Sarbanes-Oxley Act of 2002 (“SOX”), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
−Removed: In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards, which we have elected to do.
−Removed: We will remain an “emerging growth company” until the earlier of (1) the earliest of the last day of the fiscal year (a) following February 11, 2024, the fifth anniversary of us becoming a publicly-traded company, (b) in which we have total annual gross revenue of at least $1.235 billion or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the last business day of our prior second fiscal quarter, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.
−Removed: We cannot predict if investors will find our common stock less attractive because we will rely on these exemptions.
−Removed: If some investors find our common stock less attractive as a result, there may be a less active market for our common stock, our share price may be more volatile and the price at which our securities trade could be less than if we did not use these exemptions.
General Risk Factors
−Removed: As a public company in the United States, we are subject to SOX.
−Removed: We have determined our disclosure controls and procedures and our internal control over financial reporting are effective.
−Removed: We can provide no assurance that we will, at all times, in the future be able to report that our internal controls over financial reporting are effective.
−Removed: Companies that file reports with the SEC, including us, are subject to the requirements of Section 404.
−Removed: Section 404 requires management to establish and maintain a system of internal control over financial reporting.
−Removed: Annual reports on Form 10-K filed under the Exchange Act must contain a report from management assessing the effectiveness of our internal control over financial reporting.
−Removed: Ensuring we have adequate internal financial and accounting controls and procedures in place to produce accurate financial statements on a timely basis is a time-consuming effort that needs to be re-evaluated frequently.
−Removed: Failure on our part to have effective internal financial and accounting controls would cause our financial reporting to be unreliable, could have a material adverse effect on our business, operating results, and financial condition, and could cause the trading price of our common stock to fall.
If any of our customers were to become insolvent or experience substantial financial difficulties, our business, financial condition and results of operations may be adversely affected.
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Our results of operations could be materially negatively affected by economic conditions generally, both in the United States and elsewhere around the world.
−Removed: Concerns over inflation, rising interest rates, energy costs, geopolitical issues, including the conflict between Russia and Ukraine, Israel and Hamas, and tensions in the Middle East and in Western countries, the availability and cost of credit, and the U.S.
+Added: Concerns over inflation, high interest rates, energy costs, geopolitical issues, including the conflict between Russia and Ukraine, Israel and Hamas, and tensions in the Middle East, China and in Western countries, the availability and cost of credit, and the U.S.
financial markets have in the past contributed to, and may continue in the future contribute to, increased volatility and diminished expectations for the economy and the markets.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.