BREXIT-RELATED DISCLOSURES BEGIN TO APPEAR IN SEC FILINGS

 

BrexitBrexit could mean trouble for U.S. corporate profits. That’s the warning dozens of companies have included in SEC filings since the U.K. voted to leave the European Union June 23.

Walgreens Boots Alliance Inc., TD Bank, McCormick & Co., and Sysco Corp. are just a few of the companies addressing Brexit in various SEC filings.

Some of the potential risks being cited include:

  • uncertainty over future trade deals;
  • the potential tax implications;
  • problems related to moving products and people across borders; and
  • fluctuating exchange rates.

Most companies, however, are using boilerplate language in their forward-looking statements to warn investors of any potential economic fallout.

As the season for filing quarterly reports picks up in August, expect to see more corporate disclosures related to the Brexit vote.

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