2 unchanged sentences
These risks should be considered in connection with evaluating an investment in our company and, in particular, the forward-looking statements contained in this Report because these risks could cause the actual results to differ materially from those suggested by the forward-looking statements.
+Added: These factors are neither presented in order of importance nor weighted.
Additionally, there are other risks which could impact us that we may not describe, because we currently do not perceive them to be material or because they are presently unknown.
−Removed: If any of these risks develops into actual events, our business, financial condition or results of operations could be negatively affected, the market price of our common stock could decline and you may lose all or part of your investment in our common stock.
+Added: If any of these risks develops into actual events, our business, financial condition and results of operations could be negatively affected, the market price of our common stock could decline and you may lose all or part of your investment in our common stock.
We expressly disclaim any obligation to update or revise any risk factors, whether as a result of new information, future events or otherwise, except as required by law.
+Added: Risk Factors Related to our Operations
People - If we cannot continue to hire and retain high quality employees, our business and financial results may be negatively affected.
7 unchanged sentences
As they gain experience and develop their knowledge and skills, our employees become highly desired by other businesses.
−Removed: Therefore, to retain our employees, we have to provide a satisfying work environment and competitive compensation and benefits.
−Removed: Cyber security risk - Our reputation and business may be harmed from cyber security risk and we may be subject to legal claims if there is loss, disclosure or misappropriation of or access to our customers' or our business partners' or our own information or other breaches of our information security.
−Removed: We make extensive use of online services and integrated information systems, including through third-party service providers.
−Removed: The secure maintenance and transmission of customer information is a critical element of our operations.
−Removed: Our information technology and other systems that maintain and transmit customer or employee information or those of service providers or business partners may be compromised by a malicious third-party penetration of our network security, or that of a third-party service provider or business partner, or impacted by advertent or inadvertent actions or inactions by our employees, or those of a third-party service provider or business partner.
−Removed: With constant changes in the security landscape, experienced computer programmers and hackers may be able to penetrate our network security, or that of our third-party service providers, and misappropriate or compromise our confidential information, create system disruptions, or cause shutdowns.
−Removed: As a result, our customers' information may be lost, disclosed, accessed or taken without our customers' consent.
−Removed: We are subject to laws and regulations relating to customer privacy and the protection of personal information.
−Removed: Any such loss, disclosure or misappropriation of, or access to, customers' or business partners' information or our information or other breach of such information security can result in legal claims or legal proceedings, including regulatory investigations and actions, may have a serious impact on our reputation and may adversely affect our businesses, operating results and financial condition.
−Removed: Organic growth strategies - If we fail to effectively manage and implement our operating strategies, we may experience a negative effect on our business and financial results.
−Removed: A significant component of our growth strategy is to expand our channels and expand our existing products and services in our existing channels and entry into new channels.
−Removed: These efforts may divert our resources and systems, require additional resources that might not be available (or available on acceptable terms), result in new or more intense competition, require longer implementation times or greater expenditures than anticipated and otherwise fail to achieve timely desired results, if at all.
−Removed: If we are unable to increase our sales and earnings by expanding our product and service offerings in a cost effective manner, our results may suffer.
−Removed: Our ability to successfully manage our organic growth will require continued enhancement of our operational, managerial and financial resources, controls, and models.
−Removed: Our failure to effectively manage our organic growth could have an adverse effect on our business, financial condition and results of operations.
−Removed: We completed the divestiture of our operations in Latin America countries, outside of Brazil, and our distribution operations in Europe.
−Removed: In addition, we exited our Canpango business.
−Removed: Reorienting our business and redeploying capital to focus on higher margin opportunities in our United States, Canadian and Brazilian businesses was designed to lead to longer-term value creation for our shareholders.
−Removed: COVID-19 - COVID-19 is expected to have a significant and adverse impact upon our business.
−Removed: The spread of COVID-19 since December 2019 has resulted in the implementation of numerous measures to contain the virus worldwide, such as travel bans and restrictions, quarantines, shelter-in-place orders, business shutdowns, and limitations of in-person gatherings.
−Removed: The pa ndemic and these containment measures have had a substantial impact on our business, suppliers' businesses and sales partners' businesses.
−Removed: The negative impacts to net sales from the pandemic, including declines in customer demand and supply chain disruptions, were most pronounced during the fourth quarter of fiscal year 2020, and have since
−Removed: Index to Financial Statements
−Removed: recovered throughout fiscal year 2021.
−Removed: While we are unable to predict the ultimate impact that COVID-19 will have on our business, certain technologies have benefited from the widespread adoption of work-from-home, as well as the accelerated shift to digitize and automate processes.
−Removed: However, our revenues could decrease significantly if our suppliers are not able to supply us products in a timely manner, our distribution centers may not be able to maintain staffing levels and therefore shipments, and our cash flows could suffer.
−Removed: We are also incurring higher employee-related healthcare and prevention costs as a result of the pandemic, including providing protective equipment to our front-line employees, and increased sanitation measures at our offices and warehouses.
−Removed: To the extent the COVID-19 pandemic continues, the mitigation efforts and the resulting economic impact could adversely affect many aspects of our business.
−Removed: COVID-19 may also have the effect of heightening many of the other risk factors disclosed herein, such as those relating to our growth strategies, credit exposure, liquidity and capital resources, people, volatility of stock price and economic weakness.
+Added: Therefore, to retain our employees and attract new ones, we have to provide a satisfying work environment and competitive compensation and benefits.
+Added: Acquisitions - Our growth strategy includes acquisitions of companies that complement or expand our existing business.
+Added: Acquisitions involve unique risks and uncertainties, including difficulty in identifying and completing potential acquisitions.
+Added: We have acquired, and may continue to acquire, companies that complement or expand our existing business in the United States and internationally, and some of these acquisitions may be in business lines where we have little, if any, experience.
+Added: Acquisitions entail a number of risks, including that the acquired company will not perform as expected and that we will be responsible for unexpected costs or liabilities.
+Added: In addition, increases in the size and complexity of our business may place a significant strain on our management, operations, technical performance, financial resources and internal financial control and reporting functions, and there are no assurances that we will be able to manage the acquisition process or newly acquired companies effectively.
+Added: It is not always possible to conduct an assessment of an acquired business’s internal control over financial reporting in the period between the consummation date and the date of management’s assessment.
+Added: Any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations under Section 404 of the Sarbanes-Oxley Act of 2002.
+Added: Our personnel, systems, procedures and controls may not be adequate to effectively manage our future operations, especially as we employ personnel in multiple domestic and international locations.
+Added: We may not be able to hire, train, retain and manage the personnel required to address our growth.
+Added: Failure to effectively manage our acquisition opportunities could damage our reputation, limit our future growth, and adversely affect our business, financial condition and operating results.
+Added: We may be unable to identify acquisitions or strategic relationships we deem suitable.
+Added: Even if we do, we may be unable to successfully complete any such transactions on favorable terms or at all, or to successfully integrate an acquired business, facilities, technologies, or products into our business or retain any key personnel, suppliers, or customers.
+Added: Furthermore, even if we complete such transactions and effectively integrate the newly acquired business or strategic alliance into our existing operations, we may fail to realize the anticipated returns and/or fail to capture the expected benefits, such as strategic or operational synergies or cost savings.
IT Systems - Our ability to manage our business and monitor results is highly dependent upon information and communication systems.
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Any disruption to our business due to such issues, or an increase in our costs to cover these issues, could have an adverse effect on our financial results and operations.
+Added: Index to Financial Statements
Our customers rely on our electronic ordering and information systems as a source for product information, including availability and pricing.
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Any material disruption of our website or the Internet in general could impair our order processing or prevent our suppliers and customers from accessing information and cause us to lose business.
−Removed: Acquisitions - Our growth strategy includes acquisitions of companies that complement or expand our existing business.
−Removed: Acquisitions involve unique risks and uncertainties.
−Removed: We have acquired, and may continue to acquire, companies that complement or expand our existing business in the United States and internationally, and some of these acquisitions may be in business lines where we have little, if any, experience.
−Removed: Acquisitions entail a number of risks, including that the acquired company will not perform as expected and that we will be responsible for unexpected costs or liabilities.
−Removed: In addition, increases in the size and complexity of our business may place a significant strain on our management, operations, technical performance, financial resources and internal financial control and reporting functions, and there are no assurances that we will be able to manage the acquisition process or newly acquired companies effectively.
−Removed: It is not always possible to conduct an assessment of an acquired business’s internal control over financial reporting in the period between the consummation date and the date of management’s assessment.
−Removed: Any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm our operating results or cause us to fail to meet our reporting obligations under Section 404 of the Sarbanes-Oxley Act of 2002.
−Removed: Our personnel, systems, procedures and controls may not be adequate to effectively manage our future operations, especially as we employ personnel in multiple domestic and international locations.
−Removed: We may not be able to hire, train, retain and manage the personnel required to address our growth.
−Removed: Failure to effectively manage our acquisition opportunities could damage our reputation, limit our future growth, and adversely affect our business, financial condition and operating results.
+Added: Supply Chain issues, include a shortage of products, may increase our costs or cause a delay in fulfilling customer orders, completing services or purchasing products and services needed to support our internal operations, resulting in an adverse impact on our financial results.
+Added: Our business depends on the timely supply of products in order to meet the demands of our customers.
+Added: At present, there is a worldwide shortage of certain technology products resulting from shortages in semiconductors and other components of those products.
+Added: Like others, we are experiencing ongoing supply constraints that have affected, and could continue to further affect, lead times and the predictability of lead times for delivery of products, the costs of products and our ability to meet customer demands in a timely fashion.
+Added: If we are unable to mitigate these disruptions, our financial results may be adversely impacted.
+Added: Manufacturing interruptions or delays, including as a result of the financial instability or bankruptcy of manufacturers, significant labor disputes such as strikes, natural disasters, political or social unrest, pandemics (such as the ongoing COVID-19 pandemic) or other public health crises or other adverse occurrences affecting any of our suppliers’ facilities, could further disrupt our supply chain.
+Added: We could experience product constraints due to the failure of suppliers to accurately forecast customer demand or to manufacture sufficient quantities of product to meet customer demand (including as a result of shortages of product components), among other reasons.
+Added: Our supply chain is also exposed to risks related to international operations.
+Added: While we purchase our products primarily in the markets we serve (for example, products for United States customers are primarily sourced in the United States), our vendor partners manufacture or purchase a significant portion of the products we sell outside of the United States, primarily in Asia.
+Added: Political, social or economic instability in Asia, or in other regions in which our vendor partners purchase or manufacture the products we sell, could cause disruptions in trade, including exports to the United States.
+Added: Supply chain issues, including a shortage of technology products and available services, may increase our costs or cause a delay in purchasing technology products needed to support our internal systems and infrastructure or operations, resulting in an impact on our operations and availability of our systems, which could result in a materially adverse effect on our operations and financial results.
+Added: Organic growth strategies - If we fail to effectively manage and implement our operating strategies, we may experience a negative effect on our business and financial results.
+Added: A significant component of our growth strategy is to expand our channels and expand our existing products and services in our existing channels and entry into new channels.
+Added: These efforts may divert our resources and systems, require additional resources that might not be available (or available on acceptable terms), result in new or more intense competition, require longer implementation times or greater expenditures than anticipated and otherwise fail to achieve timely desired results, if at all.
+Added: If we are unable to increase our sales and earnings by expanding our product and service offerings in a cost effective manner, our results may suffer.
+Added: Our ability to successfully manage our organic growth will require continued enhancement of our operational, managerial and financial resources, controls, and models.
+Added: Our failure to effectively manage our organic growth could have an adverse effect on our business, financial condition and results of operations.
Index to Financial Statements
−Removed: Economic weakness - Economic weakness and geopolitical uncertainty could adversely affect our results and prospects.
−Removed: Our financial results, operations and prospects depend significantly on worldwide economic and geopolitical conditions, the demand for our products and services, and the financial condition of our customers and suppliers.
−Removed: Economic weakness and geopolitical uncertainty have in the past resulted, and may result in the future, in reduced demand for products resulting in decreased sales, margins and earnings.
−Removed: Economic weakness and geopolitical uncertainty may also lead us to impair assets, including goodwill, intangible assets and other long-lived assets, take restructuring actions or adjust our operating strategy and reduce expenses in response to decreased sales or margins.
−Removed: We may not be able to adequately adjust our cost structure in a timely fashion, which may adversely impact our profitability.
−Removed: Uncertainty about economic conditions may increase foreign currency volatility in markets in which we transact business, which may negatively impact our results.
−Removed: Economic weakness and geopolitical uncertainty also make it more difficult for us to manage inventory levels and/or collect customer receivables, which may result in provisions to create reserves, write-offs, reduced access to liquidity and higher financing costs.
−Removed: The economic weakness brought about by COVID-19 may result in prolonged recession, which has the potential to disproportionately impact our business depending on which sectors of the economy and which geographies are most impacted.
Credit exposure - We have credit exposure to our customers.
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As a result of these factors and other challenges in extending credit to international customers, we generally face greater credit risk from international sales compared to domestic sales.
−Removed: As customers continue to face the negative economic impacts of COVID-19, we may face heightened credit losses not otherwise experienced before the pandemic.
−Removed: International operations - Our international operations expose us to risks that are different from, and possibly greater than, the risks we are exposed to domestically.
−Removed: We currently have significant facilities outside the United States, and a substantial portion of our revenue is derived from our international operations.
−Removed: These operations are subject to a variety of risks that are different from the risks that we face domestically or are similar risks but with potentially greater exposure.
−Removed: These risks include:
−Removed: • Disproportionate negative impact from COVID-19 in a foreign location;
−Removed: • Fluctuations of foreign currency and exchange rates, which can impact sales, costs of the goods we sell and the reporting of our results and assets on our financial statements;
−Removed: • Changes in international trade laws, trade agreements, or trading relationships affecting our import and export activities, including export license requirements, restrictions on the export of certain technology and tariff changes, or the imposition of new or increased trade sanctions;
−Removed: • Difficulties in collecting accounts receivable and longer collection periods;
−Removed: • Changes in, or expiration of, various foreign incentives that provide economic benefits to us;
−Removed: • Labor laws or practices that impact our ability and costs to hire, retain and discharge employees;
−Removed: • Difficulties in staffing and managing operations in foreign countries;
−Removed: • Changes in the interpretation and enforcement of laws (in particular related to items such as duty and taxation), and laws related to data privacy such as GDPR and other similar privacy laws that impact our IT systems and processes;
+Added: As customers continue to face the negative economic impacts of COVID 19, recession and inflation, we may face heightened credit losses not otherwise experienced before the pandemic.
+Added: Reliance on third parties - We are dependent on third parties for some services, including the delivery of a majority of our products, logistics and warehousing.
+Added: Changes in shipping terms or the failure or inability of our third-party shippers to perform could have an adverse impact on our business and results of operations.
+Added: We rely on third parties to perform certain services for our business and for our customers, which, if not performed by these third parties in accordance with the terms of the arrangement, could result in significant disruptions or costs to our organization, including monetary damages and an adverse effect on our customer relationships.
+Added: In particular, we are dependent upon major shipping companies, including FedEx and UPS, for the shipment of our products to and from our centralized warehouses.
+Added: Changes in shipping terms, or the inability of these third-party shippers to perform effectively, could affect our responsiveness to our customers.
+Added: From time to time, we have experienced significant increases in shipping costs due to increases in fuel costs and transit losses due to a congested supply chain.
+Added: Increases in our shipping costs or transit losses may adversely affect our financial results if we are unable to pass on these higher costs to our customers.
+Added: In Brazil, we use third parties to provide warehousing and logistics services in order to provide cost-effective operations and scale in certain regions.
+Added: The failure or inability of one or more of these third parties to deliver products from suppliers to us, or products from us to our customers, for any reason could disrupt our business and harm our reputation and operating results.
+Added: We work closely with our third-party logistics and warehousing providers to anticipate issues, and also review public information regarding their financial health.
+Added: However, issues may not be identified quickly, which may lead to lack of or poor execution of services, loss or litigation.
+Added: Additionally, deterioration of the financial condition of our logistical and warehousing providers could result in delayed responsiveness or delivery failure, which would ultimately affect our responsiveness to our customers and thus may adversely affect our business, financial condition and results of operations.
+Added: Inventory - The value of our inventory may be adversely affected by market and other factors.
+Added: Our business, like that of other distributors, is subject to the risk that the value of our inventory will be adversely affected by price reductions by manufacturers, by technological changes affecting the usefulness or desirability of our products or by foreign currency fluctuations.
+Added: Most of our supplier agreements and most manufacturers’ policies have some price protection and stock rotation opportunities with respect to slow-moving or obsolete inventory items.
+Added: However, these protections are limited in scope and do not protect against all declines in inventory value, excess inventory, or product obsolescence, and in some instances we may not be able to fulfill all necessary conditions or successfully manage such price protection or stock rotation opportunities.
+Added: In addition, these protections are not always reflected in supplier agreements and their application in a particular situation is dependent upon negotiations with our suppliers.
+Added: As a result, occasionally we are required to write down the value of excess and obsolete inventory, and should any of these write-downs occur at a significant level, they could have an adverse effect on our business, financial condition and results of operations.
Index to Financial Statements
−Removed: • Global economic and financial market instability related to the U.K.’s referendum withdrawal from the E.U., as well as instability from the possibility of withdrawal of other E.U.
−Removed: member states:
−Removed: • Potential political and economic instability and changes in governments;
−Removed: • Compliance with foreign and domestic import and export regulations and anti-corruption laws, including the Iran Threat Reduction and Syria Human Rights Act of 2012, U.S.
−Removed: Foreign Corrupt Practices Act, U.K.
−Removed: Bribery Act, and similar laws of other jurisdictions, governing our business activities outside the United States, the violation of which could result in severe penalties, including monetary fines, criminal proceedings and suspension of export or import privileges;
−Removed: • Terrorist or military actions that result in destruction or seizure of our assets or suspension or disruption of our operations or those of our customers, suppliers or service providers.
−Removed: We currently transact business in the UK, where we also have offices.
−Removed: The UK has formally exited the E.U.
−Removed: (“Brexit”) and the transition period has now ended.
−Removed: As a result, a number of agreements have been made that alter UK’s relationship with the E.U., including the terms of trade between the UK and the E.U.
−Removed: and the rest of the world.
−Removed: The measures could potentially disrupt the markets we serve and the tax jurisdictions in which we operate and adversely change tax benefits or liabilities in these or other jurisdictions.
−Removed: Changes resulting from these measures, including access to free trade agreements, tariffs and customs and currency fluctuations may cause us to lose customers, suppliers and employees and adversely affect our financial condition.
−Removed: We have substantial operations in Brazil and face risks related to these countries' complex tax, labor, trade compliance and consumer protection laws and regulations.
−Removed: Additionally, developing markets such as Brazil have greater political volatility and vulnerability to infrastructure and labor disruptions, are more likely to experience market and interest rate fluctuations and may have higher inflation.
−Removed: In addition, doing business in these countries poses additional challenges, such as finding and retaining qualified employees, particularly management-level employees, navigating underdeveloped infrastructure and identifying and retaining qualified suppliers, resellers, agents and service providers, among other risks.
−Removed: Furthermore, in developing markets it may be common for others to engage in business practices prohibited by laws and regulations applicable to us, such as the U.S.
−Removed: Foreign Corrupt Practices Act, UK Bribery Act, or similar local anti-bribery laws.
−Removed: Our commitment to legal compliance could put us at a competitive disadvantage, and any lapses in our compliance could subject us to civil and criminal penalties that could materially and adversely affect our financial condition and results of operations.
−Removed: In addition, competition in developing markets is increasing.
−Removed: If we cannot successfully increase our business, our product sales, financial condition and results of operations could be adversely affected.
−Removed: Customers - We operate in a highly competitive environment and good customer relations are critical to our success.
−Removed: There can be no assurance that we will be able to retain and expand our customer relationships or acquire new customers.
−Removed: Meeting our customers' needs quickly and fairly is critical to our business success.
−Removed: Transactions with our customers generally are performed on a purchase order basis rather than under long term supply agreements.
−Removed: Therefore, our customers readily can choose to purchase from other sources.
−Removed: From time to time, we experience shortages in availability of some products from suppliers, and this impacts customers' decisions regarding whether to make purchases from us.
−Removed: Anything that negatively influences customer relations can also negatively impact our operating results.
−Removed: Customer consolidation also may lead to changes in the nature and terms of relationships with our customers.
−Removed: The loss or deterioration of a major customer relationship could adversely affect our business, financial condition and results of operations.
−Removed: COVID-19's widespread negative economic impacts could result in some of our customers shuttering their businesses, thus negatively impacting our revenues.
Suppliers - Changes to supply agreement terms or lack of product availability from our suppliers could adversely affect our operating margins, revenues or the level of capital required to fund our operations.
2 unchanged sentences
Our suppliers have the ability to make adverse changes in their sales terms and conditions, such as reducing the level of purchase discounts and rebates they make available to us.
+Added: In addition, our suppliers have the ability to terminate sales to us.
We have no guaranteed price or delivery agreements with our suppliers.
In certain product categories, limited price protection or return rights offered by our suppliers may have a bearing on the amount of product we are willing to stock.
−Removed: Our inability to pass through to our customers the impact
−Removed: Index to Financial Statements
−Removed: of these changes, as well as if we fail to develop or maintain systems to manage ongoing supplier programs, could cause us to record inventory write-downs or other losses and could have significant negative impact on our gross margins.
+Added: Our inability to pass through to our customers the impact of these changes, as well as if we fail to develop or maintain systems to manage ongoing supplier programs, could cause us to record inventory write-downs or other losses and could have significant negative impact on our gross margins.
We receive purchase discounts and rebates from some suppliers based on various factors, including goals for quantitative and qualitative sales or purchase volume and customer related metrics.
3 unchanged sentences
Our ability to obtain particular products or product lines in the required quantities and our ability to fulfill customer orders on a timely basis is critical to our success.
−Removed: Our suppliers have experienced product supply shortages from time to time due to the inability of certain of their suppliers to supply products on a timely basis.
+Added: Our suppliers have experienced product supply shortages from time to time due to the inability of certain of their suppliers to supply products on a timely basis, which has been more prevalent since the COVID-19 pandemic began.
Specifically, shortages of computer chips may lead to product constraints and adversely affect our sales volumes and product availability.
8 unchanged sentences
Supplier consolidation may also lead to changes in the nature and terms of relationships with our suppliers.
+Added: In addition, suppliers may face liquidity or solvency issues that in turn could negatively affect our business and operating results.
Any loss or deterioration of a major supplier relationship could adversely affect our business, financial condition and results of operations.
−Removed: Liquidity and capital resources - Market factors and our business performance may increase the cost and availability of capital.
+Added: Liquidity and capital resources - Market factors and our business performance may increase the cost and decrease the availability of capital.
Additional capital may not be available to us on acceptable terms to fund our working capital needs and growth.
5 unchanged sentences
We have a multi-currency senior secured credit facility with JPMorgan Chase Bank N.A., as administrative agent, and a syndicate of banks (the “Amended Credit Agreement”).
−Removed: The Amended Credit Agreement includes customary representations, warranties, and affirmative and negative covenants, including financial covenants.
+Added: The Amended Credit Agreement includes customary representations, warranties and affirmative and negative covenants, including financial
+Added: Index to Financial Statements
Specifically, our Leverage Ratio must be less than or equal to 3.50:1.00 at all times.
1 unchanged sentence
In the event of a default, customary remedies are available to the lenders, including acceleration and increased interest rates.
−Removed: In addition, the cost of borrowings under our existing sources of capital and any potential new sources of capital as a result of variable interest rates and the transition away from LIBOR may increase, which could have an adverse effect on our financial condition.
−Removed: Changes in how lenders rate our credit worthiness, as well as macroeconomic factors such as an economic downturn, inflation, and global economic instability may restrict our ability to raise capital in adequate amounts or on terms acceptable to us, and the failure to do so could harm our ability to operate our business.
+Added: In addition, the cost of borrowings under our existing sources of capital and any potential new sources of capital as a result of variable interest rates may increase, which could have an adverse effect on our financial condition.
+Added: Changes in how lenders rate our credit worthiness, as well as macroeconomic factors such as an economic downturn, inflation, rising interest rates and global economic instability may restrict our ability to raise capital in adequate amounts or on terms acceptable to us, and the failure to do so could harm our ability to operate our business.
In addition, our cash and cash equivalents are deposited with various financial institutions located in the various countries in which we operate.
1 unchanged sentence
however, we are exposed to risk of loss on such funds or we may experience significant disruptions in our liquidity needs if one or more of these financial institutions were to suffer bankruptcy or similar restructuring.
+Added: Customers - We operate in a highly competitive environment and good customer relations are critical to our success.
+Added: There can be no assurance that we will be able to retain and expand our customer relationships or acquire new customers.
+Added: Meeting our customers' needs quickly and fairly is critical to our business success.
+Added: Transactions with our customers generally are performed on a purchase order basis rather than under long term supply agreements.
+Added: Therefore, our customers readily can choose to purchase from other sources.
+Added: From time to time, we experience shortages in availability of some products from suppliers, and this impacts customers' decisions regarding whether to make purchases from us.
+Added: Anything that negatively influences customer relations can also negatively impact our operating results.
+Added: Customer consolidation also may lead to changes in the nature and terms of relationships with our customers.
+Added: The loss or deterioration of a major customer relationship could adversely affect our business, financial condition and results of operations.
+Added: COVID-19's continued widespread disruptive economic impacts, economic recession, and higher interest rates and inflation could result in some of our customers shuttering their businesses, thus negatively impacting our revenues.
+Added: Litigation - We routinely are involved in litigation that can be costly and lead to adverse results.
+Added: In the ordinary course of our business, we are involved in a wide range of disputes, some of which result in litigation.
+Added: We are routinely involved in litigation related to commercial disputes surrounding our business activities, intellectual property disputes, employment disputes and accounts receivable collection activity.
+Added: In addition, as a public company with a large shareholder base, we are susceptible to class-action lawsuits and other litigation resulting from disclosures that we or our officers and directors make (or do not make) and our other activities.
+Added: Litigation is expensive to bring and defend, and the outcome of litigation can be adverse and significant.
+Added: Not all adverse outcomes can be anticipated, and applicable accounting rules do not always require or permit the establishment of a reserve until a final result has occurred or becomes probable and estimable.
+Added: In some instances we are insured or indemnified for the potential losses;
+Added: in other instances we are not.
+Added: An uninsured, under insured or non-indemnified adverse outcome in significant litigation could have an adverse effect on our business, financial condition and results of operations.
+Added: We can make no assurances that we will ultimately be successful in any dispute that we are a party to.
+Added: "Legal Proceedings" for further discussion of our material legal matters.
+Added: Fair value measurement of goodwill and other intangible assets - Changes in the fair value of the assets and liabilities measured at fair value could have a significant effect on our reported earnings.
+Added: We have substantial goodwill.
+Added: On at least an annual basis, we are required to assess our goodwill and other intangible assets, including but not limited to customer relationships, trademarks and trade names, for impairment.
+Added: This includes continuously monitoring events and circumstances that could trigger an impairment test outside of our annual impairment testing date in the fourth quarter of each year.
+Added: Testing goodwill and other intangibles for impairment requires the use of significant estimates and other inputs outside of our control.
+Added: If the carrying value of goodwill in any of our goodwill reporting units or other intangible assets is determined to exceed their respective fair values, we may be required to record significant impairment charges.
+Added: In addition, our decision to dispose of certain of our operations may require us to recognize an impairment to the carrying value of goodwill and other intangible assets attendant to those operations.
+Added: We recognized significant goodwill and intangible asset impairment in the fiscal year ended June 30, 2020.
+Added: Any declines resulting in a goodwill impairment or long-lived asset
Index to Financial Statements
+Added: impairment may result in material non-cash charges to our earnings.
+Added: Impairment charges would also reduce our consolidated shareholders' equity and increase our debt-to-total-capitalization ratio, which could negatively impact our credit rating and access to the public debt and equity markets.
+Added: International operations - Our international operations expose us to risks that are different from, and possibly greater than, the risks we are exposed to domestically.
+Added: We currently have significant facilities outside the United States, and a substantial portion of our revenue is derived from our international operations.
+Added: These operations are subject to a variety of risks that are different from the risks that we face domestically or are similar risks but with potentially greater exposure.
+Added: These risks include:
+Added: • Disproportionate negative impact from COVID-19 in a foreign location;
+Added: • Fluctuations of foreign currency and exchange rates, which can impact sales, costs of the goods we sell and the reporting of our results and assets on our financial statements;
+Added: • Changes in international trade laws, trade agreements, or trading relationships affecting our import and export activities, including export license requirements, restrictions on the export of certain technology and tariff changes, or the imposition of new or increased trade sanctions;
+Added: • Difficulties in collecting accounts receivable and longer collection periods;
+Added: • Changes in, or expiration of, various foreign incentives that provide economic benefits to us;
+Added: • Labor laws or practices that impact our ability and costs to hire, retain and discharge employees;
+Added: • Difficulties in staffing and managing operations in foreign countries;
+Added: • Changes in the interpretation and enforcement of laws (in particular related to items such as duty and taxation), and laws related to data privacy such as GDPR and other similar privacy laws that impact our IT systems and processes;
+Added: • Global economic and financial market instability related to the UK’s referendum withdrawal from the E.U., as well as instability from the possibility of withdrawal of other E.U.
+Added: member states:
+Added: • Potential political and economic instability and changes in governments;
+Added: • Compliance with foreign and domestic import and export regulations and anti-corruption laws, including the Iran Threat Reduction and Syria Human Rights Act of 2012, U.S.
+Added: Foreign Corrupt Practices Act, UK Bribery Act, and similar laws of other jurisdictions, governing our business activities outside the United States, the violation of which could result in severe penalties, including monetary fines, criminal proceedings and suspension of export or import privileges;
+Added: • Terrorist or military actions that result in destruction or seizure of our assets or suspension or disruption of our operations or those of our customers, suppliers or service providers.
+Added: We currently transact business in the UK, where we also have offices.
+Added: The UK's ongoing process of exiting the E.U.
+Added: is a source of continued uncertainty.
+Added: A number of agreements have already been made that alter the UK’s relationship with the E.U., including the terms of trade between the UK and the E.U.
+Added: and the rest of the world.
+Added: The measures could potentially disrupt the markets we serve and the tax jurisdictions in which we operate and adversely change tax benefits or liabilities in these or other jurisdictions.
+Added: Changes resulting from these measures, including access to free trade agreements, tariffs and customs and currency fluctuations may cause us to lose customers, suppliers and employees and adversely affect our financial condition.
+Added: We have substantial operations in Brazil and face risks related to these countries' complex tax, labor, trade compliance and consumer protection laws and regulations.
+Added: Additionally, developing markets such as Brazil have greater political volatility and vulnerability to infrastructure and labor disruptions, are more likely to experience market and interest rate fluctuations and may have higher inflation.
+Added: In addition, doing business in these countries poses additional challenges, such as finding and retaining qualified employees, particularly management-level employees, navigating underdeveloped infrastructure and identifying and retaining qualified suppliers, resellers, agents and service providers, among other risks.
+Added: Furthermore, in developing markets it may be common for others to engage in business practices prohibited by laws and regulations applicable to us, such as the U.S.
+Added: Foreign Corrupt Practices Act, UK Bribery Act, or similar local anti-bribery laws.
+Added: Our commitment to legal compliance could put us at a competitive disadvantage, and any lapses in our compliance could subject us to civil and criminal penalties that could materially and adversely affect our financial condition and results of operations.
+Added: In addition, competition in developing markets is increasing.
+Added: If we cannot successfully increase our business, our product sales, financial condition and results of operations could be adversely affected.
+Added: Index to Financial Statements
+Added: Quarterly fluctuations - Our net sales and operating results are dependent on a number of factors.
+Added: Our net sales will fluctuate from quarter to quarter, and these fluctuations may cause volatility in our stock price.
+Added: Our net sales and operating results may fluctuate quarterly and, as a result our performance in one period may vary significantly from our performance in the preceding quarter, and may differ significantly from our forecast of performance from quarter to quarter.
+Added: The impact of these variances may cause volatility in our stock price.
+Added: Additionally, any past financial performance should not be considered an indicator of future performance, and investors should not use historical trends to anticipate results or trends in the future as our operating results may fluctuate significantly quarter to quarter.
+Added: The results of any quarterly period are not indicative of results to be expected for a full fiscal year.
+Added: Centralized functions - We have centralized a number of functions to provide efficient support to our business.
+Added: As a result, a loss or reduction of use of one of our locations would have an adverse effect on our business operations and financial results.
+Added: In order to be as efficient as possible, we centralize a number of critical functions.
+Added: For instance, we currently distribute products to the majority of North America from a single warehouse.
+Added: Similarly, for the primary business operations, we utilize a single information system based in the United States for the majority of our North American operations, while our Brazilian and UK operations have separate systems.
+Added: While we have backup systems and business continuity plans, any significant or lengthy interruption of our ability to provide these centralized functions as a result of natural disasters, prolonged inclement weather, security breaches or otherwise would significantly impair our ability to continue normal business operations.
+Added: In addition, the centralization of these functions increases our exposure to local risks, such as the availability of qualified employees and the lessening of competition for critical services, such as freight and communications.
+Added: Risk Factors Related to our Industry
Competition - We experience intense competition in all of our markets.
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Our inability to compete successfully against current and future competitors could cause our revenue and earnings to decline.
−Removed: Fair value measurement of goodwill and other intangible assets - Changes in the fair value of the assets and liabilities measured at fair value could have a significant effect on our reported earnings.
−Removed: We have substantial goodwill.
−Removed: On at least an annual basis, we are required to assess our goodwill and other intangible assets, including but not limited to customer relationships, trademarks, and trade names, for impairment.
−Removed: This includes continuously monitoring events and circumstances that could trigger an impairment test outside of our annual impairment testing date in the fourth quarter of each year.
−Removed: Testing goodwill and other intangibles for impairment requires the use of significant estimates and other inputs outside of our control.
−Removed: If the carrying value of goodwill in any of our goodwill reporting units or other intangible assets is determined to exceed their respective fair values, we may be required to record significant impairment charges.
−Removed: In addition, our decision to dispose of certain of our operations may require us to recognize an impairment to the carrying value of goodwill and other intangible assets attendant to those operations.
−Removed: We recognized significant goodwill and intangible asset impairment in the fiscal year ended June 30, 2020.
−Removed: Any declines resulting in a goodwill impairment or long-lived asset impairment may result in material non-cash charges to our earnings.
−Removed: Impairment charges would also reduce our consolidated shareholders' equity and increase our debt-to-total-capitalization ratio, which could negatively impact our credit rating and access to the public debt and equity markets.
Disruptive technology - We may not be able to respond and adapt to rapid technological changes, evolving industry standards or changing customer needs or requirements, and thus may become less competitive.
The market for some of our products and services is subject to rapid technological change, evolving industry standards and changes in customer demand, which can contribute to the decline in value or obsolescence of inventory.
−Removed: Although most of our suppliers provide us with certain protections from the loss in value of inventory (such as price protection and certain return rights), we cannot be sure that such protections will fully compensate for any loss in value, or that the suppliers will choose to, or be able to, honor such agreements.
+Added: Although most of our suppliers provide us with certain protections from the loss in value of inventory (such as price protection and certain return
+Added: Index to Financial Statements
+Added: rights), we cannot be sure that such protections will fully compensate for any loss in value, or that the suppliers will choose to, or be able to, honor such agreements.
Our ability and our supplier's ability to anticipate and react quickly to new technology trends and customer requirements is crucial to our overall success, financial condition and results of operations.
1 unchanged sentence
New technologies may emerge that quickly surpass the capabilities of the products we currently hold in inventory or have access to sell through our existing supplier network, and our customers may no longer view our product offerings as desirable or necessary, which could result in a reduction in our market share and ability to obtain sufficient profit margins.
−Removed: Some of our competitors and our suppliers’ competitors may be better at adapting to disruptive technology or entering
−Removed: Index to Financial Statements
+Added: Some of our competitors and our suppliers’ competitors may be better at adapting to disruptive technology or entering new markets.
Our future success depends, in part, on our ability to adapt and manage our product and service offerings to meet customer needs at prices that our customers are willing to pay.
−Removed: Inventory - The value of our inventory may be adversely affected by market and other factors.
−Removed: Our business, like that of other distributors, is subject to the risk that the value of our inventory will be adversely affected by price reductions by manufacturers, by technological changes affecting the usefulness or desirability of our products or by foreign currency fluctuations.
−Removed: Most of our supplier agreements and most manufacturers’ policies have some price protection and stock rotation opportunities with respect to slow-moving or obsolete inventory items.
−Removed: However, these protections are limited in scope and do not protect against all declines in inventory value, excess inventory, or product obsolescence, and in some instances we may not be able to fulfill all necessary conditions or successfully manage such price protection or stock rotation opportunities.
−Removed: In addition, these protections are not always reflected in supplier agreements and their application in a particular situation is dependent upon negotiations with our suppliers.
−Removed: As a result, occasionally we are required to write down the value of excess and obsolete inventory, and should any of these write-downs occur at a significant level, they could have an adverse effect on our business, financial condition or results of operations.
−Removed: Foreign currency - Our international operations expose us to fluctuations in foreign currency exchange rates that could adversely affect our results of operations.
−Removed: We transact sales, pay expenses, own assets and incur liabilities in countries using currencies other than the U.S.
−Removed: Volatility in foreign exchange rates increase our risk of loss related to products and services purchased in a currency other than the currency in which those products and services are sold.
−Removed: We maintain policies to reduce our net exposure to foreign currency exchange rate fluctuations through the use of derivative financial instruments, however there can be no assurance that fluctuations in foreign currency exchange rates will not materially affect our financial results.
−Removed: Because our consolidated financial statements are presented in U.S.
−Removed: dollars, we must translate our financial statements into U.S.
−Removed: dollars at exchange rates in effect during each reporting period.
−Removed: Therefore, increases or decreases in the exchanges rates between the U.S.
−Removed: dollar and other currencies we transact in may positively or negatively affect our results of operations.
−Removed: In addition, unexpected and dramatic changes in foreign currency exchange rates may negatively affect our earnings from those markets.
−Removed: Quarterly fluctuations - Our net sales and operating results are dependent on a number of factors.
−Removed: Our net sales will fluctuate from quarter to quarter, and these fluctuations may cause volatility in our stock price.
−Removed: Our net sales and operating results may fluctuate quarterly and, as a result our performance in one period may vary significantly from our performance in the preceding quarter, and may differ significantly from our forecast of performance from quarter to quarter.
−Removed: The impact of these variances may cause volatility in our stock price.
−Removed: Additionally, any past financial performance should not be considered an indicator of future performance, and investors should not use historical trends to anticipate results or trends in the future as our operating results may fluctuate significantly quarter to quarter.
−Removed: The results of any quarterly period are not indicative of results to be expected for a full fiscal year.
−Removed: Centralized functions - We have centralized a number of functions to provide efficient support to our business.
−Removed: As a result, a loss or reduction of use of one of our locations would have an adverse effect on our business operations and financial results.
−Removed: In order to be as efficient as possible, we centralize a number of critical functions.
−Removed: For instance, we currently distribute products to the majority of North America from a single warehouse.
−Removed: Similarly, for the primary business operations, we utilize a single information system based in the United States for the majority of our North American operations, while our Brazilian and U.K.
−Removed: operations have separate systems.
−Removed: While we have backup systems and business continuity plans, any significant or lengthy interruption of our ability to provide these centralized functions as a result of natural disasters, prolonged inclement weather, security breaches or otherwise would significantly impair our ability to continue normal business operations.
−Removed: In addition, the centralization of these functions increases our exposure to local risks, such as the availability of qualified employees and the lessening of competition for critical services, such as freight and communications.
−Removed: Reliance on third parties - We are dependent on third parties for some services, including the delivery of a majority of our products, logistics and warehousing.
−Removed: Changes in shipping terms or the failure or inability of our third-party shippers to perform could have an adverse impact on our business and results of operations.
+Added: General Risk Factors
+Added: Cyber security risk - Our reputation and business may be harmed from cyber security risk and we may be subject to legal claims if there is loss, disclosure or misappropriation of or access to our customers' or our business partners' or our own information or other breaches of our information security.
+Added: We make extensive use of online services and integrated information systems, including through third-party service providers.
+Added: The secure maintenance and transmission of customer information is a critical element of our operations.
+Added: Our information technology and other systems that maintain and transmit customer or employee information or those of service providers or business partners may be compromised by a malicious third-party penetration of our network security, or that of a third-party service provider or business partner, or impacted by advertent or inadvertent actions or inactions by our employees, or those of a third-party service provider or business partner.
+Added: With constant changes in the security landscape, experienced computer programmers and hackers may be able to penetrate our network security, or that of our third-party service providers, and misappropriate or compromise our confidential information, create system disruptions, or cause shutdowns.
+Added: As a result, our customers' information may be lost, disclosed, accessed or taken without our customers' consent.
+Added: We are subject to laws and regulations relating to customer privacy and the protection of personal information.
+Added: Any such loss, disclosure or misappropriation of, or access to, customers' or business partners' information or our information or other breach of such information security can result in legal claims or legal proceedings, including regulatory investigations and actions, and may have a serious impact on our reputation and may adversely affect our businesses, operating results and financial condition.
+Added: COVID-19 - COVID-19 continues to create macroeconomic uncertainty and could negatively impact our financial results
+Added: We are vulnerable to the general economic impacts of pandemics, such as the COVID-19 pandemic, which continue to create significant macroeconomic uncertainty and supply chain constraints.
+Added: These supply chain constraints have caused shortages in electronics components, resulting in extended lead times and unpredictability.
+Added: The COVID-19 pandemic has also resulted in the implementation of numerous measures to contain the virus worldwide, which may continue to cause significant disruptions to the US and global economy.
+Added: The extent to which COVID-19 and related challenges will continue to impact our results will depend on future developments, which are uncertain and cannot be predicted with confidence.
+Added: While we are unable to predict the ultimate impact that COVID-19 will have on our business, certain technologies have benefited from the widespread adoption to a work-from-anywhere business model, as well as the accelerated shift to digitize and automate processes.
+Added: However, our revenues could decrease significantly if our suppliers are not able to supply us products in a timely manner.
+Added: Additionally, our distribution centers may not be able to maintain staffing levels, which could affect our ability to ship products timely and negatively impact our cash flow.
+Added: To the extent the COVID-19 pandemic continues, the mitigation efforts and the resulting economic impact could adversely affect many aspects of our business.
+Added: COVID-19 may also have the effect of heightening many of the other risk factors disclosed herein, such as those relating to our growth strategies, credit exposure, liquidity and capital resources, people, volatility of stock price and economic weakness.
Index to Financial Statements
−Removed: We rely on third parties to perform certain services for our business and for our customers, which, if not performed by these third parties in accordance with the terms of the arrangement, could result in significant disruptions or costs to our organization, including monetary damages and an adverse effect on our customer relationships.
−Removed: In particular, we are dependent upon major shipping companies, including FedEx and UPS, for the shipment of our products to and from our centralized warehouses.
−Removed: Changes in shipping terms, or the inability of these third-party shippers to perform effectively, could affect our responsiveness to our customers.
−Removed: From time to time, we have experienced significant increases in shipping costs due to increases in fuel costs.
−Removed: Increases in our shipping costs may adversely affect our financial results if we are unable to pass on these higher costs to our customers.
−Removed: In Brazil, we use third parties to provide warehousing and logistics services in order to provide cost-effective operations and scale in certain regions.
−Removed: The failure or inability of one or more of these third parties to deliver products from suppliers to us, or products from us to our customers, for any reason could disrupt our business and harm our reputation and operating results.
−Removed: We work closely with our third-party logistics and warehousing providers to anticipate issues, and also review public information regarding their financial health.
−Removed: However, issues may not be identified quickly, which may lead to lack of or poor execution of services, loss or litigation.
−Removed: Additionally, deterioration of the financial condition of our logistical and warehousing providers could result in delayed responsiveness or delivery failure, which would ultimately affect our responsiveness to our customers and thus may adversely affect our business, operations and financial performance.
Increased government regulation - We may be subject to additional costs and subject to fines and penalties because certain governmental entities are end-customers of products that we sell.
3 unchanged sentences
We also may be subject to increased scrutiny and investigation into our business practices, which may increase operating costs and increase legal liability, as well as expose us to additional reputational risk.
−Removed: Failure to comply with environmental regulations - We are subject to various environmental regulations, and failing to comply with any requirements may adversely affect our business operations or financial results.
−Removed: We are subject to various federal, state, local and foreign laws and regulations addressing environmental and other impacts from product disposal, use of hazardous materials in products, recycling of products at the end of their useful life and other related matters.
−Removed: Compliance with these environmental laws may have a material adverse effect on our business.
−Removed: These laws include the Restriction of Hazardous Substances Directive, ("RoHS"), RoHS Directive 2011/65/EU ("RoHS 2") and the European Union Waste Electrical and Electronic Equipment Directive ("WEEE") as enacted by individual European Union countries and other similar legislation adopted in North America.
−Removed: These directives can make companies involved in the production or distribution of electrical goods, including computers and printers, responsible for collection, recycling, treatment and disposal of recovered products.
−Removed: In addition, these directives and similar legislation can have an impact on the types and design of products we are able to sell in jurisdictions that have adopted such restrictions.
−Removed: While we strive to ensure we are in compliance with all applicable regulations, certain of these regulations impose strict liability.
−Removed: Additionally, we may be held responsible for the prior activities of entities that we have acquired or will acquire in the future.
−Removed: Failure to comply with these regulations could result in substantial costs, fines and civil or criminal sanctions, as well as third party claims for property damage or personal injury.
−Removed: Further, environmental laws may become more stringent over time, imposing greater compliance costs and increasing risks and penalties associated with violation, which could adversely affect our business, financial condition and results of operations.
Volatility of Stock Price - The trading price of our common stock fluctuates.
6 unchanged sentences
and announcement by us or our competitors of significant acquisitions, transactions, partnerships, joint ventures or capital commitments.
−Removed: Index to Financial Statements
A material decline in the price of our common stock may result in the assertion of certain claims against us, and/or the commencement of inquiries and/or investigations against us.
A prolonged decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise capital, if needed, and the inability for you to obtain a favorable price at which you could sell your shares.
−Removed: Litigation - We routinely are involved in litigation that can be costly and lead to adverse results.
−Removed: In the ordinary course of our business, we are involved in a wide range of disputes, some of which result in litigation.
−Removed: We are routinely involved in litigation related to commercial disputes surrounding our business activities, intellectual property disputes, employment disputes and accounts receivable collection activity.
−Removed: In addition, as a public company with a large shareholder base, we are susceptible to class-action lawsuits and other litigation resulting from disclosures that we or our officers and directors make (or do not make) and our other activities.
−Removed: Litigation is expensive to bring and defend, and the outcome of litigation can be adverse and significant.
−Removed: Not all adverse outcomes can be anticipated, and applicable accounting rules do not always require or permit the establishment of a reserve until a final result has occurred or becomes probable and estimable.
−Removed: In some instances we are insured or indemnified for the potential losses;
−Removed: in other instances we are not.
−Removed: An uninsured, under insured or non-indemnified adverse outcome in significant litigation could have an adverse effect on our business, financial condition and results of operations.
−Removed: We can make no assurances that we will ultimately be successful in our defense of any of these disputes.
−Removed: "Legal Proceedings" for further discussion of our material legal matters.
+Added: Foreign currency - Our international operations expose us to fluctuations in foreign currency exchange rates that could adversely affect our results of operations.
+Added: We transact sales, pay expenses, own assets and incur liabilities in countries using currencies other than the U.S.
+Added: Volatility in foreign exchange rates increase our risk of loss related to products and services purchased in a currency other than the currency in which those products and services are sold.
+Added: We maintain policies to reduce our net exposure to foreign currency exchange rate fluctuations through the use of derivative financial instruments, however there can be no assurance that fluctuations in foreign currency exchange rates will not materially affect our financial results.
+Added: Because our consolidated financial statements are presented in U.S.
+Added: dollars, we must translate our financial statements into U.S.
+Added: dollars at exchange rates in effect during each reporting period.
+Added: Therefore, increases or decreases in the exchanges rates between the U.S.
+Added: dollar and other currencies we transact in may positively or negatively affect our results of operations.
+Added: In addition, unexpected and dramatic changes in foreign currency exchange rates may negatively affect our earnings from those markets.
+Added: Economic weakness - Economic weakness, including recession and inflation, and geopolitical uncertainty could adversely affect our results and prospects.
+Added: Our financial results, operations and prospects depend significantly on worldwide economic and geopolitical conditions, the demand for our products and services, and the financial condition of our customers and suppliers.
+Added: Economic weakness and geopolitical uncertainty have in the past resulted, and may result in the future, in reduced demand for products resulting in decreased sales, margins and earnings.
+Added: Economic weakness and geopolitical uncertainty may also lead us to impair assets, including goodwill, intangible assets and other long-lived assets, take restructuring actions or adjust our operating strategy and reduce expenses in response to decreased sales or margins.
+Added: We may not be able to adequately adjust our cost structure in a timely fashion, which may adversely impact our profitability.
+Added: Uncertainty about economic conditions may increase foreign currency volatility in markets in which we transact business, which may negatively impact our results.
+Added: Economic weakness and geopolitical uncertainty also make it more difficult for us to manage inventory levels and/or collect customer receivables, which may result in provisions to create reserves, write-offs, reduced access to liquidity and higher financing costs.
+Added: The economic weakness brought about by COVID-19 may result in prolonged recession, inflation and increasing interest rates, which has the potential to disproportionately impact our business depending on which sectors of the economy and which geographies are most impacted.
+Added: Index to Financial Statements
Unresolved Staff Comments.
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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.