Hasbro (HAS) risk factors, FY2024 10-K

Other

1. 01Our business strategy has evolved to focus on extending the reach of our toy and game products globally to improve our position in the marketplace, increase revenue and increase operating profit
2. 02Our business will suffer if we are unable to develop, publish and commercialize digital games
3. 03Third party licensees and partners of our brands or intellectual property may fail to honor their obligations to us or their actions may put us at risk
4. 04We may not realize the full benefit of our licenses from third parties if the licensed material has less market appeal than expected, if revenue from the licensed products is not sufficient to earn out the minimum guaranteed royalties or if licenses are not renewed
5. 05Failure to achieve of our anticipated cost-savings may impact our ability to operate efficiently and profitably
6. 06The industries in which we compete are highly competitive. If we are unable to compete effectively with existing or new competitors, our revenues, market share and profitability could decline
7. 07We may not realize the anticipated benefits of acquisitions, dispositions or investments in joint ventures, or those benefits may be delayed or reduced in their realization
8. 08Our business may be harmed by the imposition or threat of tariffs, including reciprocal or retaliatory tariffs, in markets in which we operate which could increase our product costs and other costs of doing business, impact consumer spending, or lower our revenues and earnings
9. 09An inability to develop, introduce and ship planned products, product lines and new brands in a timely and cost-effective manner could result in excess inventory, a shortage of products or otherwise damage our business
10. 10If we are not successful in transforming our supply chain operations, our business may be harmed
11. 11If we are unable to navigate through global supply chain challenges, our business may be harmed
12. 12If we are unable to adapt our business to the continued shift to direct-to-consumer, our business may be harmed
13. 13The concentration of our customer base means that economic difficulties or changes in the purchasing or promotional policies or patterns of our major customers could have a significant impact on us
14. 14Our substantial business, sales and manufacturing operations outside the U.S. subject us to risks associated with international operations
15. 15Our reliance on third-party manufacturers to produce our products, particularly in China, the U.S., Vietnam and India, presents risks to our business
16. 16Our dependence on third-party relationships with studios, content producers and distribution channels to develop and distribute digital games and entertainment content is critical to our business
17. 17If our vendors or third-party outsourcing partners fail to perform, our business may be harmed
18. 18Our success is dependent on the efforts and dedication of our officers and other employees
19. 19Our business may be harmed if we are unable to protect our critical intellectual property rights
20. 20Failure to successfully operate our information systems and implement new technology effectively could disrupt our business or reduce our sales or profitability
21. 21If our electronic data is compromised our business could be significantly harmed
22. 22Changes in U.S., global or regional economic conditions could impact discretionary consumer spending and harm our business and financial performance
23. 23Inflation and other adverse economic conditions in the markets in which we and our consumers, customers, employees, suppliers and manufacturers operate could negatively impact our ability to produce and ship our products, and lower our revenues, margins and profitability
24. 24Outbreaks of communicable infections, diseases, or public health pandemics in the markets in which we and our employees, consumers, customers, partners, licensees, suppliers and manufacturers operate, could substantially harm our business
25. 25Our quarterly and annual operating results may fluctuate due to seasonality in our business
26. 26We have had and may in the future have significant impairment charges that adversely affect our net earnings
27. 27Changes in foreign currency exchange rates can significantly impact our reported financial performance
28. 28Our indebtedness may limit our availability of cash, cause us to divert cash to fund debt service payments or make it more difficult to take certain other actions
29. 29If we were unable to obtain or service our other external financings, or if the restrictions imposed by such financing were too burdensome, our business would be harmed
30. 30securities. The failure to receive financing on desirable terms, or at all, could damage our ability to support our future operations or capital needs or engage in other business activities
31. 31Changes in, or differing interpretations of, income tax laws and rules, and changes in our geographic operating results, may impact our effective tax rate
32. 32We are subject to various government regulations, violation of which could subject us to sanctions or otherwise harm our business. In addition, we could be the subject of future product liability suits or product recalls, which could harm our business
33. 33We are involved in litigation, arbitration or regulatory matters where the outcome is uncertain and which could entail significant expense