We love Form 10-K's. For those not in the know, a 10-K is the form that a company files its annual report to the SEC on. And to be honest, there's nothing at least one of us enjoys more than sitting down with a big stack of financials and geeking out over every minute number-crunch. Yeah, we know that's probably weird, but whatevs, that's how we roll here in the D. Anyway, the section we love reading more than any other is a company's "risk factors." Mostly, that's because we enjoy seeing what a company thinks the problems are that have the potential to adversely affect it over the next year. Since the General just filed their 10-K today (finally!), we've now got the skinny on what they think is the monster hiding under their bed. So after the jump, we've got the laundry list of what GM's scared of, and then we'll let you see if there's anything they've left off, and then answer for us — what would you be worried about if you were GM?
"Our continued ability to achieve structural and material cost reductions and to realize production efficiencies for our automotive operations is critical to our ability to achieve our turnaround plan and return to profitability."
"Restrictions in our labor agreements could limit our ability to pursue or achieve cost savings through restructuring initiatives, and labor strikes, work stoppages, or similar difficulties could significantly disrupt our operations."
"We must continue to make structural changes to reduce our U.S. health care cost burden, the source of our largest competitive cost disadvantage."
"Our extensive pension and OPEB obligations to retirees are a competitive disadvantage for us."
"Our pension and OPEB expenses are affected by factors outside our control, including the performance of plan assets, interest rates, actuarial data and experience, and changes in laws and regulations."
"Delphi may seek to reject or compromise its obligations to us through its Chapter 11 bankruptcy proceedings."
"We have guaranteed a significant amount of Delphi's financial obligations to its unionized workers. If Delphi fails to satisfy these obligations, we would be obligated to pay some of these obligations."
"Financial difficulties, labor stoppages, or work slowdowns at key suppliers, including Delphi, could result in a disruption in our operations and have a material adverse effect on our business."
"Increase in cost, disruption of supply or shortage of raw materials could harm our business."
"A decline in consumer demand for our higher margin vehicles could result in diminished profitability."
"Shortages and increases in the price of fuel can result in diminished profitability due to shifts in consumer vehicle demand."
"The pace of introduction and market acceptance of new vehicles is important to our success."
"Decreases in the residual value of our vehicles could have a significant negative effect on our results of operations."
"GM's significant investment in new technology may not result in successful vehicle applications."
"We operate in a highly competitive industry that has excess manufacturing capacity."
"The financial distress, bankruptcy, or insolvency of a major competitor could have significant adverse consequences for us."
"We could be materially adversely affected by changes or imbalances in currency exchange and other rates."
"Our liquidity position could be negatively affected by a variety of factors, which in turn could have a material adverse effect on our business."
"Continued failure to achieve profitability may cause some or all of our deferred tax assets to expire."
"Further reduction of our credit ratings, or failure to restore our credit ratings to higher levels, could have a material adverse effect on our business."
"The federal government is currently investigating certain of our accounting practices. The final outcome of these investigations could require us to restate prior financial results."
"We have determined that our internal controls over financial reporting are currently ineffective. The lack of effective internal controls could adversely affect our financial condition and ability to carry out our strategic business plan."
"Our indebtedness and other obligations of our automotive operations are significant and could materially adversely affect our business."
"Economic and industry conditions constantly change and could have a material adverse effect on our business and results of operations."
"Our businesses outside the United States expose us to additional risks that may cause our revenues and profitability to decline."
"Changes in existing, or the adoption of new, laws, regulations or policies of governmental organizations, particularly environmental or fuel economy regulations, may have a significant negative impact on how we do business."
"We are subject to significant risks of litigation."
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