7 unchanged sentences
As a provider of products and services to financial institutions and issuers of securities, our products and services are provided in a manner designed to assist our clients in complying with the laws and regulations to which they are subject.
+Added: Changes in laws and regulations could require changes in the services we provide, the manner in which we provide our services, the fees we charge for our services, or they could result in a reduction or elimination of the demand for our services.
+Added: For example, our investor communications services and the fees we charge our clients for certain services are subject to change if applicable SEC or stock exchange rules or regulations are amended, or new laws or regulations are adopted that change the proxy materials, regulatory disclosures, or other communications issuers are required to send or the manner in which they send them.
+Added: Such changes in laws or regulations could result in a material negative impact on our business and financial results.
Therefore, our services, such as our proxy, shareholder report and prospectus distribution, and customer communications services, are particularly sensitive to changes in laws and regulations, including those governing the financial services industry and the securities markets.
−Removed: Changes in laws and regulations could require changes in the services we provide or the manner in which we provide our services, or they could result in a reduction or elimination of the demand for our services.
−Removed: Our investor communications services and the fees we charge our clients for certain services are subject to change if applicable SEC or stock exchange rules or regulations are amended, or new laws or regulations are adopted, which could result in a material negative impact on our business and financial results.
−Removed: For example, the SEC’s recently adopted modifications to the mutual fund and exchange-traded fund shareholder report disclosure framework could have an impact on our services, business and financial results.
In addition, new regulations governing our clients could result in significant expenditures that could cause them to reduce their use of our services, seek to renegotiate existing agreements, or cease or curtail their operations, all of which could adversely impact our business.
15 unchanged sentences
See Note 3, “Revenue Recognition” and Note 11, “Deferred Client Conversion and Start-up Costs” to our consolidated financial statements for more information.
−Removed: Security breaches or cybersecurity attacks could adversely affect our ability to operate, could result in personal, confidential or proprietary information being misappropriated, and may cause us to be held liable or suffer harm to our reputation.
+Added: Security breaches or cybersecurity incidents could adversely affect our financial results and ability to operate, could result in personal, confidential or proprietary information being misappropriated, and may cause us to be held liable or suffer harm to our reputation.
We process and transfer sensitive data, including personal information, valuable intellectual property and other proprietary or confidential data provided to us by our clients, which include financial institutions, public companies, mutual funds, and healthcare companies.
We also handle personal information of our employees in connection with their employment.
−Removed: We maintain systems and procedures including encryption, authentication technology, data loss prevention technology, entitlement management, access control and anti-malware software, and transmission of data over private networks to protect against unauthorized access to physical and electronic information, including by cybersecurity attacks.
−Removed: However, information security threats continue to evolve resulting in increased risk and exposure and increased costs to protect against the threat of information security breaches or to respond to or alleviate problems caused by such breaches.
−Removed: In certain circumstances, our third-party vendors may have access to sensitive data including personal information.
−Removed: It is also possible that a third-party vendor could intentionally or inadvertently disclose sensitive data, including personal information.
−Removed: We require our third-party vendors to have appropriate security controls if they have access to the personal information of our clients’ customers or our employees.
−Removed: However, despite those safeguards, it is possible that unauthorized individuals could improperly access our systems or those of our vendors, or improperly obtain or disclose the sensitive data including personal information that we or our vendors process or handle.
−Removed: Many of our services are provided through the internet, which increases our exposure to potential cybersecurity attacks.
−Removed: We have experienced cybersecurity threats to our information technology infrastructure and have experienced non-material cybersecurity attacks, attempts to breach our systems and other similar incidents.
−Removed: Future threats could cause harm to our business and our reputation and challenge our ability to provide reliable service, as well as negatively impact our results of operations materially.
−Removed: Our insurance coverage may not be adequate to cover all the costs related to cybersecurity attacks or disruptions resulting from such events.
−Removed: Any unauthorized use or disclosure of certain personal information could put individuals at risk of identity theft and financial or other harm and result in costs to us in investigation, remediation, legal defense and in liability to parties who are financially harmed.
−Removed: We may incur significant costs to protect against the threat of information security breaches or to respond to or alleviate problems caused by such breaches.
−Removed: For example, laws may require notification to regulators, clients or employees and enlisting credit monitoring or identity theft protection in the event of a privacy breach.
−Removed: A cybersecurity attack could also be directed at our systems and result in interruptions in our operations or delivery of services to our clients and their customers.
−Removed: Furthermore, a security breach could cause us to lose revenues, lose clients or cause damage to our reputation.
+Added: Some of our services are provided through the internet, which increases our exposure to potential cybersecurity incidents.
+Added: Information security threats continue to evolve resulting in increased risk and exposure and increased costs to protect against the threat of information security breaches or to respond to or alleviate problems caused by such breaches.
+Added: Due to the nature of our products and services, we are subject to the risk of information security incidents, including those impacting our clients and third-party vendors.
+Added: Failure by our clients or third-party vendors to notify us in a timely manner of cybersecurity incidents impacting their operations could result in unauthorized access to our systems and data and materially affect our business, operations and financial results.
+Added: In certain circumstances, our third-party vendors may also have access to sensitive data including personal information.
+Added: It is also possible that a third-party vendor could intentionally or inadvertently disclose such sensitive data.
+Added: Further, unauthorized individuals could improperly access our systems or those of our vendors, or improperly obtain or disclose the sensitive data including personal information that we or our vendors process or handle.
+Added: We face ongoing cybersecurity threats to our information technology infrastructure including data loss, data exfiltration, denial of service, and ransomware, among others.
+Added: We have experienced non-material cybersecurity incidents, attempts to breach our systems and other similar attacks, including incidents affecting our clients and third-party vendors, which if such attacks or attempts are successful in the future could cause harm to our business and our reputation and challenge our ability to provide reliable services, as well as negatively impact our results of operations and financial condition.
+Added: Any impact on our results of operations and financial condition may be material depending on the scope of the incident.
+Added: Examples of previous incidents include, but are not limited to, social engineering, phishing, and denial-of-service attacks.
+Added: In addition, our insurance coverage may not be adequate to cover all the costs related to cybersecurity incidents or disruptions resulting from such events.
+Added: If we fail to maintain an adequate information security program or implement sufficient security standards, technology or controls to protect against information security incidents or privacy breaches and identify and adapt to emerging security threats and risks, it could cause us to lose revenues, lose clients and/or damage to our reputation.
+Added: In addition, any unauthorized access to our information technology systems could result in the use, theft, or disclosure of confidential, sensitive, or personal data, destruction or modification of records, interruptions to our operations and delivery of our services and products, installation of malware, and the potential need to pay ransom.
+Added: As a result, we may incur significant costs to investigate and remediate such incidents, and to protect against future threats to our information security and information technology systems.
+Added: In addition, such incidents could give rise to legal actions from our clients and/or their customers and regulatory investigations and/or significant penalties and fines.
Our business and results of operations may be adversely affected if we do not comply with legal and regulatory requirements that apply to our services or businesses, and new laws or regulations and/or changes to existing laws or regulations to which we are subject may adversely affect our ability to conduct our business or may reduce our profitability.
1 unchanged sentence
The SEC, FINRA, DOL, various stock exchanges and other U.S.
−Removed: and foreign governmental or regulatory authorities continuously review legislative and regulatory initiatives and may adopt new or revised laws and regulations or provide revised interpretations or they may change the enforcement priorities with respect to existing laws and regulations.
−Removed: These legislative and regulatory initiatives impact the way in which we conduct our business, requiring changes to the way we provide our services or additional investment which may make our business more or less profitable.
+Added: and foreign governmental or regulatory authorities continuously review legislative and regulatory initiatives and may adopt new or revised laws and regulations or provide revised interpretations or they may change their priorities, including those related to enforcement, with respect to existing laws and regulations.
+Added: These legislative and regulatory initiatives impact the way in which we conduct our business, requiring changes to the way we provide our services or additional investment which may make our business less profitable.
Further, as a provider of technology services to financial institutions, certain aspects of our U.S.
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Furthermore, the changing nature of privacy laws in the U.S., the European Union and elsewhere could impact our processing of personal information of our employees and on behalf of our clients.
+Added: Further, there is increased focus, including by governments, regulators, our investors, employees, clients and other stakeholders, on sustainability matters, which has resulted in new or additional legal and regulatory requirements and may require increased compliance and operational costs.
+Added: In addition, if we fail to comply with applicable regulations and maintain practices that meet our stakeholders’ evolving expectations, it could harm our reputation, adversely affect our ability to attract and retain employees or clients and expose us to increased scrutiny from investors and regulatory authorities.
Our ability to comply with applicable laws and regulations depends largely upon the maintenance of an effective compliance system which can be time consuming and costly, as well as our ability to attract and retain qualified compliance personnel.
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• inability to effectively resolve any errors in internal software programs or computer systems once they are detected;
−Removed: • failure to maintain adequate operational systems and infrastructure;
+Added: • failure to maintain adequate operational systems and infrastructure or comply with internal policies and procedures;
• heavy stress placed on systems during peak times or due to high volumes or volatility;
7 unchanged sentences
The inability to properly perform our services or operational errors in the performance of our services could lead to liability for claims, client loss and result in reputational damage.
+Added: Our clients operate in highly regulated industries and rely on our services to meet some of their regulatory requirements.
The inability or the failure to properly perform our services could result in our clients and/or certain of our subsidiaries that operate regulated businesses being subjected to losses including censures, fines, or other sanctions by applicable regulatory authorities, and we could be liable to parties who are financially harmed by those errors.
In addition, the inability to properly perform our services or errors in the performance of our services could result in a decline in confidence in our products and services and cause us to incur expenses including service penalties, lose revenues, lose clients or damage our reputation.
+Added: In addition, some of our products, services and processes leverage machine learning and AI.
+Added: The use of such technology is subject to risk and may result in insufficient or inaccurate information.
+Added: These deficiencies could undermine the quality of these products and services provided to our clients, subjecting us to legal liability and reputational damage.
Global economic and political conditions, including global health crises and geopolitical instability, broad trends in business and finance that are beyond our control have had and may have a material impact on our business operations and those of our clients and contribute to reduced levels of activity in the securities markets, which could adversely impact our business and results of operations.
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Accordingly, any significant reduction in participation and activity in the securities markets would likely adversely impact our business and results of operations.
+Added: If we are unable to respond to the demands of our existing and new clients, or adapt to technological changes or advances, our business and future growth could be impacted.
+Added: The global financial services industry is characterized by increasingly complex and integrated infrastructures and products, new and changing business models and rapid technological and regulatory changes.
+Added: Our clients’ needs and demands for our products and services evolve with these changes.
+Added: Our future success will depend, in part, on our ability to respond to our clients’ demands for new services, capabilities and technologies on a timely and cost-effective basis.
+Added: We also need to adapt to technological advancements such as AI, machine learning, quantum computing, digital and distributed ledger and cloud computing and keep pace with changing regulatory standards to address our clients’ increasingly sophisticated requirements.
+Added: Transitioning to these new technologies may require close coordination with our clients, be disruptive to our resources and the services we provide and may increase our reliance on third-party service providers such as our cloud services provider.
+Added: In addition, we run the risk of disintermediation due to emerging technologies, fintech start-ups and new market entrants.
+Added: If we fail to adapt or keep pace with new technologies in a timely manner, it could harm our ability to compete, decrease the value of our products and services to our clients, and harm our business and impact our future growth.
If the operational systems and infrastructure that we depend on fail to keep pace with our growth, we may experience operating inefficiencies, client dissatisfaction and lost revenue opportunities.
6 unchanged sentences
If we fail to manage our growth, we may experience operating inefficiencies, dissatisfaction among our client base, and lost revenue opportunities.
−Removed: If we are unable to respond to the demands of our existing and new clients, or adapt to technological changes or advances, our business and future growth could be impacted.
−Removed: The global financial services industry is characterized by increasingly complex and integrated infrastructures and products, new and changing business models and rapid technological and regulatory changes.
−Removed: Our clients’ needs and demands for our products and services evolve with these changes.
−Removed: Our future success will depend, in part, on our ability to respond to our clients’ demands for new services, capabilities and technologies on a timely and cost-effective basis.
−Removed: We also need to adapt to technological advancements such as artificial intelligence, machine learning, quantum computing, digital and distributed ledger and cloud computing and keep pace with changing regulatory standards to address our clients’ increasingly sophisticated requirements.
−Removed: Transitioning to these new technologies may require close coordination with our clients, be disruptive to our resources and the services we provide and may increase our reliance on third-party service providers such as our cloud services provider.
−Removed: In addition, we run the risk of disintermediation due to emerging technologies, fintech start-ups and new market entrants.
−Removed: If we fail to adapt or keep pace with new technologies in a timely manner, it could harm our ability to compete, decrease the value of our products and services to our clients, and harm our business and impact our future growth.
Intense competition could negatively affect our ability to maintain or increase our business, financial condition, and results of operations.
35 unchanged sentences
We use third-party open source software in our products and services.
−Removed: Though we have a policy, review board, and review process in place governing the use of open source software, there is a risk that we incorporate into our products and services open source software with onerous licensing terms that purportedly require us to make the source code of our proprietary code, combined with such open source software, available under such license.
+Added: There is a risk that we incorporate into our products and services open source software with onerous licensing terms that purportedly require us to make the source code of our proprietary code, combined with such open source software, available under such license.
Furthermore, U.S.
4 unchanged sentences
As part of our overall business strategy, we may make acquisitions and strategic investments in companies, technologies or products, or enter joint ventures.
−Removed: In fact, over the last three fiscal years we have completed 4 acquisitions and made strategic investments in seven firms.
+Added: In fact, over the last three fiscal years we have completed four acquisitions and made strategic investments in seven firms.
These transactions and the integration of acquisitions involve a number of risks.
16 unchanged sentences
• experiencing decreases in earnings as a result of non-cash impairment charges.
−Removed: In addition, international acquisitions, such as our 2021 acquisition of Itiviti, often involve additional or increased risks including, for example:
+Added: In addition, international acquisitions often involve additional or increased risks including, for example:
• geographically separated organizations, systems, and facilities;
5 unchanged sentences
Our existing and future debt levels, and compliance with our debt service obligations, could have a negative impact on our financing options and liquidity position, which could adversely affect our business.
−Removed: As of June 30, 2023, we had $3,413.3 million in aggregate principal amount of total debt.
+Added: As of June 30, 2024, we had $3,355.1 million in aggregate carrying amount of total debt.
Additionally, our revolving credit facility has a remaining borrowing capacity of $1,500.0 million as of June 30, 2024.
23 unchanged sentences
Failure to settle a transaction may affect our ability to conduct these services or may reduce their profitability as a result of the reputational risk associated with failure to settle.
−Removed: Unresolved Staff Comments
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.