Goodyear Tire & Rubber (GT) risk factors, FY2024 10-K

Risks Related to Strategic Initiatives and Operations

1. 01If we do not successfully implement the Goodyear Forward plan and our other strategic initiatives, our operating results, financial condition and liquidity may be materially adversely affected
2. 02If we are unable to successfully implement the actions set forth in the Goodyear Forward plan or other strategic initiatives, we may not be able to improve our operating results, including our operating margin, generate additional cash flow, or reduce our debt levels and leverage
3. 03We cannot assure you that our strategic initiatives will be successful. If not, we may not be able to achieve or sustain future profitability, which would impair our ability to meet our debt and other obligations and would otherwise negatively affect our operating results, financial condition and liquidity
4. 04On January 7, 2025, Goodyear and SRI entered into the Dunlop Purchase Agreement relating to the sale of the Dunlop brand for consumer, commercial and other specialty tires, together with certain associated intellectual property, other intangible assets and inventory (the “Transaction”)
5. 05Although it is not a condition to Closing, the sale of the Dunlop brand will require a waiver or an amendment of our European revolving credit facility. We cannot assure you that such waiver or amendment, or alternative financing, can be obtained, or if obtained, will be on terms acceptable to us
6. 06litigation related to any failure to complete the Transaction or related to any enforcement proceeding commenced against us to perform our obligations pursuant to the Dunlop Purchase Agreement
7. 07The sales of our OTR tire business and the Dunlop brand may disrupt our current and future plans or operations
8. 08We face significant global competition and our market share could decline
9. 09Our capital expenditures may not be adequate to maintain our competitive position and may not be implemented in a timely or cost-effective manner
10. 10A prolonged economic downturn or economic uncertainty could adversely affect our business and results of operations
11. 11Raw material, energy and transportation costs may materially adversely affect our operating results and financial condition
12. 12Our international operations have certain risks that may materially adversely affect our operating results, financial condition and liquidity
13. 13other changes in laws or government policies
14. 14Financial difficulties, work stoppages, supply disruptions or economic conditions affecting our major customers, dealers or suppliers could harm our business
15. 15If we are unable to attract and retain key personnel our business could be materially adversely affected
16. 16Increasing competition for highly skilled and talented workers, as well as labor shortages, could adversely affect our business
17. 17We have substantial fixed costs and, as a result, our operating income fluctuates disproportionately with changes in our net sales
18. 18Environmental issues, including climate change, or legal, regulatory or market measures to address environmental issues, may negatively affect our business and operations and cause us to incur significant costs
19. 19indemnification obligations for environmental remediation costs and liabilities that may arise relating to certain divested operations

Risks Related to Our Capital Structure

1. 20Our long-term ability to meet our obligations, to repay maturing indebtedness or to implement strategic initiatives may be dependent on our ability to access capital markets in the future and to improve our operating results
2. 21We have a substantial amount of debt, which could restrict our growth, place us at a competitive disadvantage or otherwise materially adversely affect our financial health
3. 22place us at a competitive disadvantage compared to our competitors
4. 23Any failure to be in compliance with any material provision or covenant of our debt instruments, or a material reduction in the borrowing base under our revolving credit facility, could have a material adverse effect on our liquidity and operations
5. 24engage in certain mergers or consolidations or transfers of substantially all of our assets
6. 25Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly

Risks Related to Information Technology and Intellectual Property

1. 26We may be adversely affected by any disruption in, or failure of, our information technology systems
2. 27We collect and store sensitive data, including intellectual property, proprietary business information and the proprietary business information of our customers and suppliers, as well as personally identifiable information of our customers and associates, in data centers and on IT networks
3. 28We may not be able to protect our intellectual property rights adequately
4. 29Damage to our brand and reputation could have an adverse effect on our business

Risks Related to Litigation, Laws and Regulations

1. 30We could be negatively impacted by changes in tariffs, trade agreements or other trade restrictions on imported tires, raw materials and other goods or equipment
2. 31We may incur significant costs in connection with our contingent liabilities and tax matters
3. 32We are subject to extensive government regulations that may materially adversely affect our operating results
4. 33We have foreign currency translation and transaction risks that may materially adversely affect our operating results, financial condition and liquidity
5. 34We may be impacted by economic and supply disruptions associated with events beyond our control, such as war, including the current conflicts between Russia and Ukraine and in the Middle East, acts of terror, political unrest, public health concerns, labor disputes or natural disasters