O REILLY AUTOMOTIVE INC (ORLY) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that O REILLY AUTOMOTIVE INC surfaced in its latest filing.

• Deteriorating economic conditions may reduce demand for our non-discretionary automotive aftermarket parts.
• Changes in vehicle technology by OEMs (e.g., electric, hybrid, internal combustion engines) may lead to less frequent repairs, longer-lasting parts, or elimination of certain repairs.
• Restrictions on access to telematics, diagnostic tools, and repair information imposed by OEMs or regulations may force vehicle owners to use dealers for maintenance and repairs.
• Trend toward consolidation among automotive parts suppliers may disrupt or end supplier relationships and lead to less competition and higher prices.
• Off-shoring of manufacturing capacity to foreign countries may disrupt or end some supplier relationships.
• Changes in country-specific trade policies, sanctions, tariffs or taxes, import limitations, and port agreements could affect sourcing ability and suppliers' ability to supply at current volumes or prices.
• Unsecured revolving credit facility, unsecured commercial paper program, and unsecured senior notes.
• Exposure to fluctuations in interest rates, including changes from implementation of new benchmark rates to SOFR.
• A downgrade in our current credit rating could cause higher interest rates, fees, and adverse effects on market price/liquidity of senior notes, and limit institutions for supplier financing programs.