−Removed: In response to the cybersecurity exposure discussed in Part I Item II - Management's Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-Q, the Company has reviewed and updated the below risk factor.
−Removed: Other than the below risk factor, there have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020.
−Removed: We face cybersecurity and data protection risks relating to cyber-attacks and information technology failures that could cause loss of confidential information and other business disruptions.
−Removed: We rely extensively on the security, stability, and availability of technology systems in our business.
−Removed: We also collect, process, and retain sensitive and confidential customer information, including proprietary business information, personal data and other information that may be subject to privacy and security laws, regulations and/or customer-imposed data protection controls.
−Removed: Our business may be adversely impacted by unintentional technology disruptions, including those resulting from programming errors, employee operational errors, software defects, and product vulnerabilities.
−Removed: We also provide technological products integral to train operation.
−Removed: Accordingly, our business may be adversely impacted by disruptions to our own or third-party information technology infrastructure, which could result from cybersecurity incidents, including, but not limited to, unauthorized access to the Company’s information technology systems, data access or acquisition, and/or encryption of the Company’s environment.
−Removed: For instance, one of our vendors publicly disclosed vulnerabilities in its operating system that we use for certain Wabtec products.
−Removed: A successful exploitation of our own or our vendors’ information technology infrastructure could result in service interruptions, safety hazards, misappropriation of confidential information, process failures, security breaches or other operational difficulties.
−Removed: Such an event could result in decreased revenues and increased capital, insurance or operating costs, including the increased costs of security to protect the Company’s infrastructure, among other results.
−Removed: Insurance maintained by the Company to protect against loss of business and other related consequences resulting from cyber incidents may not be sufficient to cover all damages.
−Removed: A disruption or compromise of the Company’s technology systems, even for short periods of time, could have a material adverse effect.
+Added: In response to the Russian invasion of Ukraine and the impact of the conflict on the Company and the global markets, the Company is providing the below additional risk factor.
+Added: Other than the below, there have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.
+Added: The ongoing conflict between Russia and Ukraine may adversely affect our business and results of operations.
+Added: Given the nature of our business and our global operations, political, economic, and other conditions in foreign countries and regions, including geopolitical risks such as those arising from the current conflict between Russia and Ukraine, may adversely affect our business and results of operations.
+Added: The broader consequences of this conflict, which may include further sanctions, embargoes, regional instability, and geopolitical shifts;
+Added: disruptions to transportation and distribution routes, or strategic decisions to alter certain routes;
+Added: potential retaliatory action by the Russian government against companies, including us, including nationalization of foreign businesses and/or assets in Russia;
+Added: increased tensions between the United States and countries in which we operate;
+Added: and the extent of the conflict’s effect on our business and results of operations as well as the global economy, cannot be predicted.
+Added: Additionally, Wabtec has operations and a strategic joint venture in Kazakhstan that have continued operating but have incurred supply, distribution and currency impacts as an indirect result from the Russian invasion of Ukraine.
+Added: To date, the operations in Kazakhstan have not been significantly impacted by the ongoing conflict outside of the overall unfavorable impact to economic conditions;
+Added: however, the future impact to these operations cannot be predicted.
+Added: To the extent the current conflict between Russia and Ukraine adversely affects our business, particularly in Russia and Kazakhstan, it may also have the effect of heightening many other risks disclosed in our Annual Report, any of which could materially and adversely affect our business and results of operations.
+Added: Such risks include, but are not limited to, adverse effects on macroeconomic conditions, including inflation and business spending;
+Added: disruptions to our global technology infrastructure, including through cyberattack, ransom attack, or cyber-intrusion;
+Added: adverse changes in international trade policies and relations;
+Added: our ability to maintain or increase our prices, our ability to implement and execute our business strategy, disruptions in global supply chains, our exposure to foreign currency fluctuations, and constraints, volatility, or disruption in the capital markets, difficulty staffing and managing impacted operations, and the recoverability of assets in the region.
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.