Risk Factors Update Summary

• Addition of FCPA and anti-corruption laws to legal risks, including potential penalties and liabilities.
• High inflation levels increased material and component prices, labor rates, and supplier costs, impacting margins.
• Mention of $10 billion long-term debt incurred in ASR transactions, impacting cash flow and flexibility.
• The U.S. government operating under a CR may impact program performance and disrupt operations.
• Global supply chain disruptions led to delays in procuring raw materials, microelectronics, and commodities.
• Labor market disruptions caused shortages, delivery delays, and increased costs, negatively affecting production.
• Difficulty in hiring and retaining qualified personnel due to labor shortages and wage inflation.
• Increased number of PW1100 GTF engines requiring inspection, impacting financial estimates and aircraft on ground levels.
• Failure to raise the debt ceiling could result in automatic reductions to agency budget accounts.
• Introduction of cybersecurity and data security risks due to climate change, affecting business operations.
• Increased cybersecurity threats and evolving regulations pose operational and compliance challenges.
• Emphasis on ESG focus leading to additional investments in technologies and resources.
• Disclosure of credit rating downgrades and potential negative impacts on debt refinancing and market access.
• Restructuring plans, workforce reductions, and cost initiatives may impact operational targets and financial condition.