What Changed
Risk factors · Feb 21, 2025 → Feb 20, 202610 added · 6 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
- In January 2026, the OECD issued additional guidance, including a safe harbor framework for certain U.S. parented groups that is expected to largely reduce the impact of Pillar Two for the Company.
- The U.S. government recently implemented significant trade policy and tariff actions, including but not limited to tariffs on imported steel and aluminum products, multiple tariffs on certain imports from China, tariffs on certain imports from Canada and Mexico, and baseline tariffs on most imports from most other countries.
- While the future financial impact of these actions and potential additional tariff actions and retaliatory actions by the U.S. or other countries remain unknown, the impacts could have a material adverse effect on our financial statements in any particular reporting period.
- If the tax laws change in a manner that increases the Company’s tax obligation, it could have a material adverse impact on the Company’s results of operations and financial condition. 7 On December 15, 2022, the European Union (EU) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework.
- The U.S. government or other foreign governments may in the future propose and implement additional changes to international trade agreements, tariffs, taxes, and other government rules and regulations and, if initiated, retaliatory tariffs or other actions may be taken by certain governments.
- Turkey and Argentina represent highly inflationary economies as their three-year cumulative inflation rate exceeded 100 percent.
- These actions have increased the cost of certain raw materials and components and created significant uncertainty and potential risks for our business.
- Even with this safe harbor, the Company could still be subject to local minimum tax regimes in countries that have adopted these rules.
- Changes in foreign trade policies and other factors beyond our control may adversely impact our business and financial performance.
- Certain countries have announced retaliatory tariffs in response to such actions.
No longer disclosed
- On December 15, 2022, the European Union (EU) Member States formally adopted the EU’s Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development (OECD) Pillar Two Framework.
- The Company’s acquisition strategy entails expense, integration risks, and other risks that could affect the Company’s earnings and financial condition.
- In the second quarter of 2022, the Company concluded that Turkey represents a highly inflationary economy as its three-year cumulative inflation rate exceeded 100 percent.
- If the tax laws change in a manner that increases the Company’s tax obligation, it could have a material adverse impact on the Company’s results of operations and financial condition.
- The Company also remeasures its financial statements for its Argentina operations in accordance with the highly inflationary accounting rules.
- The Company’s business may be adversely affected by the seasonality of sales and weather conditions.