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What Changed
Risk factors · Mar 11, 2025 → Mar 3, 2026
30 added · 32 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
For example, in 2025 the United States increased its Section 232 steel and aluminum measures, eliminating country exemptions and raising aluminum tariffs to 25% effective March 2025, and since June 2025 has imposed 50% tariffs on steel, aluminum and many covered “derivative” products from nearly all trading partners.
For example, in July 2025, the United States enacted the One Big Beautiful Bill Act (the “OBBA”), which significantly affects federal taxes, credits and deductions applicable to businesses.
(iv) the potential disruption of our ongoing operations and distraction of management away from oversight of these activities that may be caused by the pursuit of acquisition or disposition transactions; and (v) failure to realize the anticipated benefits and cost savings of a transaction fully or within the expected time frame, or at all. 8 Table of Contents Risks Related to Technology and Information Security Our technology is important to the Company’s success and the failure to protect this technology could put the Company at a competitive disadvantage.
A breach in the security of the Company’s software or information technology systems could harm its reputation, result in a loss of current and potential customers, and subject the Company to material claims, which could materially harm our operating results and financial condition.
See Item 3 – Legal Proceedings of this Form 10-K for a discussion of material pending legal proceedings known to be contemplated by governmental authorities, if any. 11 Table of Contents The Company could be subject to additional or unanticipated tax liabilities.
The OBBA and related guidance could change the timing and amount of deductions (including for domestic research or experimental expenditures and depreciation), alter our current and deferred tax positions, and affect our cash flows and effective tax rate.
Moreover, the Company may be required to expend significant financial and other resources to further protect against security breaches or to rectify problems caused by any security breach.
The guidance has also established a global minimum tax of 15%, which is being or may be implemented in various jurisdictions.
The Company is from time to time subject to litigation, which could have a material impact on the Company’s business, financial condition, or results of operations.
If sustained or repeated, such a business interruption, system failure, service denial or data loss and damage could result in a deterioration of the Company’s ability to write and process orders, provide customer service, or perform other necessary business functions.
The risk that these types of events could seriously harm the Company’s business is likely to increase as the Company expands its reliance on technology for its operations and order processing. 9 Table of Contents Data breaches and other serious cybersecurity incidents have increased globally, along with the methods, techniques, and complexity of attacks, including use of viruses, ransomware and other malicious software, phishing, and other efforts to discover and exploit any design flaws, bugs, or other security vulnerabilities.
In addition, changes in operating conditions and changes in compliance with policies and procedures currently in place may result in inadequate internal control over financial reporting in the future. 10 Table of Contents Environmental compliance costs and liabilities could increase the Company’s expenses and adversely affect the Company’s financial condition.
No longer disclosed
For example, from March 2018 until March 2021, the United States imposed an additional 25% tariff under Section 232 of the Trade Expansion Act of 1962, as amended, on steel products imported into the United States.
The guidance has also established a global minimum tax of 15%, which is being or may be implemented in various jurisdictions. [Depending on the final form of legislation and the jurisdictions which enact it, there may be significant tax consequences for us.] In addition, the U.S. presidential administration has directed the U.S.
If sustained or repeated, such a business interruption, system failure, service denial or data loss and damage could result in a deterioration of the Company’s ability to write and process orders, provide customer service, or perform other necessary business functions. 9 Table of Contents A breach in the security of the Company’s software or information technology systems could harm its reputation, result in a loss of current and potential customers, and subject the Company to material claims, which could materially harm our operating results and financial condition.
Further, our insurance may not be adequate to compensate us for all resulting losses described above, and the cost to obtain adequate coverage may increase for us in the future or may not be available. 11 Table of Contents The Company is from time to time subject to litigation, which could have a material impact on the Company’s business, financial condition, or results of operations.
Department of Treasury to develop options for “protective measures” in response to tax rules imposed by non-U.S. countries that are extraterritorial or disproportionately affect U.S. companies (which may include taxes imposed under the OECD guidance) and legislation has been introduced that would increase U.S. tax rates on non-U.S. companies and investors if their home jurisdictions impose discriminatory or extraterritorial taxes on U.S. companies, but we cannot predict whether such protective measures or legislation will be adopted or what, if any, responsive measures may be adopted by non-U.S. countries.
The United States also imposed a 10% tariff on all aluminum imports into the United States, with initial exemptions for aluminum imported from certain U.S. trading partners.
Further, in August 2022, the United States enacted the Inflation Reduction Act of 2022 (the “IRA”) which includes a new 15% corporate minimum tax as well as a 1% excise tax on fair value of corporate stock repurchases made after December 31, 2022.
(iv) the potential disruption of our ongoing operations and distraction of management away from oversight of these activities that may be caused by the pursuit of acquisition or disposition transactions;
Tax Cuts and Jobs Act of 2017 eliminated the existing option to deduct research and development expenditures and requires taxpayers to amortize them over five years pursuant to IRC Section 174.
One customer represented 14% of total accounts receivable as of December 28, 2024 and one customer represented 12% of total accounts receivable as of December 30, 2023.
Difficulties encountered with acquisitions may have a material adverse effect on our business, financial condition, and results of operations. 8 Table of Contents We may be unable to successfully execute acquisitions or dispositions or effectively integrate businesses we may acquire in the future.
Data breaches and other serious cybersecurity incidents have increased globally, along with the methods, techniques, and complexity of attacks, including use of viruses, ransomware and other malicious software, phishing, and other efforts to discover and exploit any design flaws, bugs, or other security vulnerabilities.