Brunswick (BC) risk factors, FY2024 10-K

RISKS RELATED TO ECONOMIC AND MARKET CONDITIONS

1. 01Worldwide economic conditions significantly affect our industries and businesses, and economic decline can materially impact our financial results
2. 02Changes in currency exchange rates can adversely affect our results
3. 03Changes to trade policy, tariffs, and import/export regulations may have a material adverse effect on our business, financial condition, and results of operations
4. 04Fiscal and monetary policy changes may negatively impact worldwide economic and credit conditions and adversely affect our industries, businesses, and financial condition
5. 05Adverse capital market conditions could have a negative impact on our financial results
6. 06Our profitability may suffer as a result of competitive pricing and other pressures
7. 07Higher energy and fuel costs can affect our results

RISKS RELATED TO OUR BUSINESS AND OPERATIONS

1. 08Successfully managing our manufacturing operations is critical to our operating and financial results
2. 09Loss of key customers could harm our business
3. 10A material portion of our revenue is derived from international sources, which creates additional uncertainty
4. 11Our financial results may be adversely affected by our third party suppliers' increased costs or inability to meet required production levels due to increased demand or disruption of supply of raw materials, parts, and product components
5. 12These risks are exacerbated in the case of single-source suppliers, and the exclusive supplier of a key component could potentially exert significant bargaining power over price, quality, warranty claims, or other terms
6. 13Adverse weather conditions and climate change events can have a negative effect on revenues
7. 14Catastrophic events, including natural and environmental disasters, acts of terrorism, or civil unrest, could have a negative effect on our operations and financial results
8. 15Our ability to remain competitive depends on successfully introducing new products, experiences, and services that meet customer expectations
9. 16We have a fixed cost base that can affect our profitability if demand decreases
10. 17Our ability to meet demand in a rapidly changing environment may adversely affect our results of operations
11. 18Actual or potential public health emergencies, epidemics, or pandemics could have a material adverse effect on our business, results of operations, or financial condition
12. 19Some of our operations are conducted by joint ventures that are not operated solely for our benefit

RISKS RELATED TO OUR STRATEGIC PLANS

1. 20Failure to execute our strategic plan and growth initiatives could have a material adverse effect on our business and financial condition
2. 21Our business and operations are dependent on the expertise of our key contributors, our successful implementation of succession plans, and our ability to attract and retain management employees and skilled labor
3. 22Our ability to continue to execute our growth strategy could potentially be adversely affected by the effectiveness of organizational changes. Any disruption or uncertainty resulting from such changes could have a material adverse impact on our business, results of operations, and financial condition
4. 23The inability to successfully integrate acquisitions could negatively impact financial results
5. 24There can be no assurance that strategic divestitures or restructurings will provide business benefits
6. 25An inability to identify and complete targeted acquisitions could negatively impact financial results

RISKS RELATED TO OUR DEALERS, DISTRIBUTORS, AND FRANCHISEES

1. 26Our financial results could be adversely affected if we are unable to maintain effective distribution
2. 27Dealer or distributor inability to secure adequate access to capital could adversely affect our sales
3. 28Inventory reductions by major dealers, retailers, and independent boat builders driven by weaker demand for our products could adversely affect our financial results
4. 29We may be required to repurchase inventory or accounts of certain dealers
5. 30The franchise business model of Freedom Boat Club presents risks

RISKS RELATED TO CYBERSECURITY AND TECHNOLOGY

1. 31Our business operations could be negatively impacted by a system outage caused by a breach of our information technology systems or operational technology systems
2. 32We rely on third parties for computing, storage, processing, and similar services. Any disruption of or interference with our use of these third-party services could have an adverse effect on our business, financial condition, and operating results

RISKS RELATED TO OUR INTELLECTUAL PROPERTY

1. 33Our success depends upon the continued strength of our brands
2. 34Either inadequate intellectual property protection that could allow others to use our technologies and impair our ability to compete or the failure to successfully defend against patent infringement claims could have a material adverse effect on our financial condition and results of operations
3. 35Policing unauthorized use of our intellectual property is difficult, particularly outside the U.S., and litigating intellectual property claims may result in substantial cost and divert management’s attention

RISKS RELATED TO OUR REGULATORY, ACCOUNTING, LEGAL, AND TAX ENVIRONMENT

1. 36An impairment in the carrying value of goodwill, trade names, and other long-lived assets could negatively affect our consolidated results of operations and net worth
2. 37We manufacture and sell products that create exposure to potential claims and litigation
3. 38Compliance with environmental, health, safety, zoning, and other laws and regulations may increase costs and reduce demand for our products
4. 39Changes in income tax laws or enforcement could have a material adverse impact on our financial results

RISKS RELATED TO OUR COMMON STOCK

1. 40The timing and amount of our share repurchases are subject to a number of uncertainties
2. 41Certain activist shareholder actions could cause us to incur expense and hinder execution of our strategy