771497--12/22/2009--ABM_INDUSTRIES_INC

related topics

{customer, product, revenue}

{condition, economic, financial}

{tax, income, asset}

{financial, litigation, operation}

{cost, contract, operation}

{debt, indebtedness, cash}

{cost, operation, labor}

{loan, real, estate}

{system, service, information}

{capital, credit, financial}

{regulation, government, change}

{control, financial, internal}

An increase in costs that we cannot pass on to clients could affect our profitability. We primarily provide our services pursuant to agreements which are cancelable by either party upon 30 to 60 days notice. Our success depends on our ability to preserve our long-term relationships with clients. Transition to a Shared Services Function could create disruption in functions affected. We incur significant accounting and other control costs that reduce profitability. Risks Related to Market and Economic Conditions A decline in commercial office building occupancy and rental rates could affect our revenues and profitability. Deterioration in economic conditions in general could further reduce the demand for facility services and, as a result, reduce our earnings and adversely affect our financial condition. Financial difficulties or bankruptcy of one or more of our major clients could adversely affect our results. Our ability to operate and pay our debt obligations depends upon our access to cash. Future declines in the fair value of our investments in auction rate securities could negatively impact our earnings. Uncertainty in the credit markets may negatively impact our costs of borrowing, our ability to collect receivables on a timely basis and our cash flow. Risks Relating to Indebtedness and Impairment Charges Any future increase in the level of debt or in interest rates can affect our results of operations. An impairment charge could have a material adverse effect on our financial condition and results of operations. Risks Related to Labor, Legal Proceedings and Compliance We are defendants in several class and representative actions or other lawsuits alleging various claims that could cause us to incur substantial liabilities. Changes in immigration laws or enforcement actions or investigations under such laws could significantly adversely affect our labor force, operations and financial results Labor disputes could lead to loss of revenues or expense variations. We participate in multi-employer defined benefit plans which could result in substantial liabilities being incurred.

Full 10-K form ▸

771497--12/22/2009--ABM_INDUSTRIES_INC_/DE/