Fortune Brands Innovations (FBIN) risk factors, FY2024 10-K

Industry Risks

1. 01We operate in very competitive consumer and trade brand categories
2. 02We may not successfully execute on our strategic plans, and our strategies may not prove effective in the face of business competition or yield the intended results
3. 03Our businesses rely on the performance of wholesale distributors and dealers, retailers and other marketing arrangements and could be adversely affected by poor performance or other disruptions in our distribution channels and customers
4. 04Rapidly evolving technological change and our ability to react effectively may present significant competitive risks

Operational and Sourcing Risks

1. 05Risks associated with our ability to improve organizational productivity and global supply chain efficiency and flexibility could adversely affect our results of operations, cash flows and financial condition
2. 06Risks associated with global commodity and energy availability and price volatility, as well as the possibility of sustained inflation, could adversely affect our results of operations, cash flows and financial condition
3. 07We manufacture, source and sell products internationally and are exposed to risks associated with doing business globally, including risks associated with uncertain trade environments
4. 08Disruption of operations could adversely affect our results of operations, cash flows and financial condition
5. 09Our inability to obtain raw materials and finished goods in a timely and cost-effective manner from suppliers could adversely affect our ability to manufacture and market our products
6. 10Risks associated with strategic acquisitions, divestitures and joint ventures could adversely affect our results of operations, cash flows and financial condition
7. 11Impairment charges could have a material adverse effect on the Company’s financial results
8. 12Our pension costs and funding requirements could increase as a result of volatility in the financial markets and changes in interest rates and actuarial assumptions

Legal, Regulatory and People Risks

1. 13Our failure to attract and retain qualified personnel and other labor constraints could adversely affect our results of operations, cash flows and financial condition
2. 14Our success depends in part on the efforts and abilities of qualified personnel at all levels, including our senior management team and other key employees. Their motivation, skills, experience, contacts and industry knowledge significantly benefit our operations and administration
3. 15Climate change and related impacts, including legislative and regulatory initiatives, could adversely affect our business and results of operations
4. 16Potential liabilities and costs from claims and litigation could adversely affect our results of operations, cash flows and financial condition
5. 17Changes in government and industry regulatory standards could adversely affect our results of operations, cash flows and financial condition
6. 18Future tax law changes or the interpretation of existing tax laws may materially impact our effective income tax rate, the resolution of unrecognized tax benefits and cash tax payments
7. 19Our inability to secure and protect our intellectual property rights could negatively impact revenues and brand reputation
8. 20In addition to the importance of their financial performance, companies are judged by their performance on a variety of environmental, social and governance (“ESG”) matters

Risks Related to the Separation of MasterBrand

1. 21The Separation may not achieve some or all of the benefits anticipated, and, following the Separation, our stock price may underperform relative to our expectations
2. 22If the Separation, together with certain related transactions, were to fail to qualify as tax-free for U.S. federal income tax purposes, then we and our stockholders could be subject to significant tax liability or tax indemnity obligations