HNI (HNI) risk factors, FY2024 10-K

Industry and Economic Risks

1. 01Unfavorable economic and industry factors could adversely affect the Corporation’s business, operating results, or financial condition
2. 02The workplace, health care, and hospitality furnishings and residential building products industries are highly competitive and, as a result, the Corporation may not be successful in winning new business
3. 03Changes in industry dynamics, including demand and order patterns from customers, distribution changes, or the loss of a significant number of dealers, could adversely affect the Corporation’s business, operating results, or financial condition
4. 04Evolving trade policy between the United States and other countries may have an adverse effect on the Corporation’s business and results of operations
5. 05Certain foreign governments have imposed tariffs on goods that their countries import from the United States. Changes in United States trade policy could result in one or more foreign governments adopting trade policies that make it more difficult or costly for the Corporation to do business in those countries
6. 06The Corporation’s profitability may be adversely affected by increases in raw material and commodity costs as well as transportation and shipping challenges

Strategic and Operational Risks

1. 07If customers do not perceive the Corporation’s products and services to be of good value, the Corporation’s brand and name recognition and reputation could suffer
2. 08The Corporation’s efforts to introduce new products to meet customer and workplace demands may not be successful, which could limit sales growth or cause its sales to decline
3. 09Natural disasters, acts of God, force majeure events, or other catastrophic events may impact the Corporation’s production capacity and, in turn, negatively impact profitability
4. 10The Corporation’s business and operations are subject to risks related to climate change
5. 11A continued shortage of qualified labor could negatively affect the Corporation’s business and materially reduce earnings
6. 12The Corporation’s failure to retain its existing management team, maintain its engineering, finance, technical, and manufacturing process expertise, or continue to attract qualified personnel could adversely affect the Corporation’s business
7. 13Failure to properly identify, value, and manage acquisitions or strategic alliances in accordance with the Corporation's strategy may negatively affect the Corporation’s business, results of operations and financial condition
8. 14The Corporation may not be able to successfully integrate and manage acquired businesses and alliances
9. 15The Corporation may not achieve the intended benefits of its merger with Kimball International
10. 16Goodwill and other intangible assets represent a significant amount of the Corporation’s total assets, and an impairment charge would adversely affect the Corporation’s financial results
11. 17Increasing health care costs could adversely affect the Corporation’s business, operating results, and financial condition
12. 18The Corporation manufactures, markets, and sells products in international markets
13. 19The Corporation is subject to currency risk in its international operations
14. 20The Corporation’s sales to the United States federal, state, and local governments are subject to uncertain future funding levels and federal, state, and local procurement laws and are governed by restrictive contract terms, any of which factors could limit current or future business
15. 21The Corporation's information technology systems, processes, and sites may suffer interruptions, security incidents, or failures that may affect its ability to conduct its business and cause significant damage to its reputation

Legal and Regulatory Risks

1. 22The Corporation is subject to extensive environmental regulation and has exposure to potential environmental liabilities
2. 23Costs related to product defects could adversely affect the Corporation’s profitability
3. 24An inability to protect the Corporation’s intellectual property could have a significant impact on the business
4. 25If third parties claim that the Corporation infringes upon their intellectual property rights, the Corporation may incur liabilities and costs and may have to redesign or discontinue an infringing product
5. 26The financing arrangements of the Corporation contain restrictions and limitations that may, under certain circumstances, significantly impact the Corporation’s ability to operate its business
6. 27Fluctuating interest rates including potential future increases may raise the interest cost on the Corporation’s debt and could materially adversely impact the Corporation’s ability to refinance existing debt and limit its acquisition and development activities going forward
7. 28The Corporation may require additional capital in the future, which may not be available or may be available only on unfavorable terms

Risks Related to the Common Stock

1. 29The Corporation’s results of operations and earnings may not meet guidance or expectations
2. 30Iowa law and provisions in the Corporation’s charter and bylaws may have the effect of preventing or hindering a change in control and adversely affecting the market price of its common stock