102379--3/15/2006--URS_CORP

related topics

{regulation, government, change}

{cost, contract, operation}

{debt, indebtedness, cash}

{personnel, key, retain}

{system, service, information}

{cost, regulation, environmental}

{cost, operation, labor}

{loss, insurance, financial}

{tax, income, asset}

{financial, litigation, operation}

{operation, international, foreign}

{competitive, industry, competition}

Because we depend on federal, state and local governments for a significant portion of our revenue, our inability to win or renew government contracts during regulated procurement processes could harm our operations and significantly reduce or eliminate our profits. Each year a portion of our multiple-year government contracts may be subject to legislative appropriations. If legislative appropriations are not made in subsequent years of a multiple-year government contract, then we may not realize all of our potential revenues and profits from that contract. If we are unable to accurately estimate and control our contract costs, then we may incur losses on our contracts, which may result in decreases in our operating margins and in a significant reduction or elimination of our profits. Our actual results could differ from the estimates and assumptions that we use to prepare our financial statements, which may significantly reduce or eliminate our profits. Our use of the percentage-of-completion method of accounting could result in reduction or reversal of previously recorded revenues and profits. If we fail to timely complete, miss a required performance standard or otherwise fail to adequately perform on a project, then we may incur a loss on that project, which may affect our overall profitability. If our partners fail to perform their contractual obligations on a project, we could be exposed to legal liability, loss of reputation or reduced profits. Our future revenues depend on our ability to consistently bid and win new contracts and renew existing contracts and, therefore, our failure to effectively obtain future contracts could adversely affect our profitability. We may be subject to substantial liabilities under environmental laws and regulations. Changes in environmental laws, regulations and programs could reduce demand for our environmental services, which could in turn negatively impact our revenues. Our liability for damages due to legal proceedings may adversely affect us and result in a significant loss. A general decline in U.S. defense spending could harm our operations and significantly reduce our future revenues. Our overall market share will decline if we are unable to compete successfully in our industry. Our failure to attract and retain key employees could impair our ability to provide services to our clients and otherwise conduct our business effectively. Recent changes in accounting for equity-related compensation will impact our financial statements and could impact our ability to attract and retain key employees. Our indebtedness could limit our ability to finance future operations or engage in other business activities. Because we are a holding company, we may not be able to service our debt if our subsidiaries do not make sufficient distributions to us. Our international operations are subject to a number of risks that could harm our operations and significantly reduce our future revenues. Our business activities may require our employees to travel to and work in high security risk countries, which may result in employee death or injury, repatriation costs or other unforeseen costs. We depend on third party support for our Enterprise Resource Program ( ERP ) system and, as a result, we may incur unexpected costs that could harm our results of operations, including the possibility of abandoning our current ERP system and migrating to another ERP system.

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