Risk Factors Update Summary

• Increased reliance on public cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud may negatively impact revenue if service-level commitments are not met.
• Addition of Alorica litigation risk. This litigation could result in significant financial implications.
• Increase in authorized stock repurchase amount. Board approved $1.0 billion and $500.0 million increases.
• Sales to government organizations, including the U.S. federal, state, and local markets, are subject to regulatory risks and requirements.
• Inclusion of GDPR penalties and heavy fines. Non-compliance may lead to substantial financial losses.
• Disclosure of potential impacts from new U.S. data privacy laws. Compliance costs and penalties may rise.
• Mention of potential fines for inadequate corporate social responsibility. Regulatory fines could affect financials.
• Risks associated with managing inventory, including shortages, excess inventory, and write-offs, could harm gross margins.
• Introduction of EU-U.S. Data Privacy Framework. Uncertainty around data transfers could impact operations.
• Expansion of laws affecting cybersecurity. Increased compliance costs and regulatory burdens may impact operations.
• Failure to meet service-level commitments for cloud-based subscription services may result in revenue loss.
• Investments in AI and machine learning technology present risks and challenges that could impact business effectiveness.
• Risks associated with construction projects, including delays, budget changes, and environmental issues, could impact financial results.
• Risks related to supply chain disruptions, component shortages, and lead times may result in lost sales and higher expenses.