International Paper (IP) risk factors, FY2024 10-K

Risks Related to our Pension and Healthcare Costs

1. 01The Company faces a variety of risks, including risks in the normal course of business and through global, regional, and local events that could have an adverse impact on its reputation, operations, and financial performance

RISKS RELATED TO THE BUSINESS COMBINATION AND THE SHARE ISSUANCE

1. 02We may fail to successfully integrate DS Smith and realize the anticipated benefits and operating synergies expected from the business combination, which could adversely affect our business, financial condition and operating results
2. 03The business combination may expose us to significant unanticipated liabilities that could adversely affect our business, financial condition and results of operations
3. 04they be significant, could have a material adverse effect on our business, financial condition and results of operations
4. 05Our maintenance of two exchange listings may adversely affect liquidity in the market for our shares of common stock and result in pricing differentials of shares of common stock between the two exchanges

RISKS RELATED TO INDUSTRY CONDITIONS

1. 06Changes in the cost and availability of raw materials, energy and transportation have recently affected, and could continue to affect, our profitability
2. 07Moreover, the availability of labor and the market price for fuel may affect third-party transportation costs
3. 08Competition and downward pricing pressure in the global packaging industry could negatively impact our financial results
4. 09customers. An inability to foster these relationships and to manage any material changes in commercial terms and service levels could have a material adverse impact on our business, financial condition, results of operations and/or future prospects

RISKS RELATED TO MARKET AND ECONOMIC FACTORS

1. 10We are affected by adverse developments in general business and economic conditions, which could have an adverse effect on the demand for our products, our financial condition and the results of our operations
2. 11Changes in international conditions or other risks arising from conducting business internationally could adversely affect our business and operations

RISKS RELATED TO CLIMATE AND WEATHER AND SOCIAL AND ENVIRONMENTAL IMPACT REPORTING

1. 12We are subject to risks associated with climate change and other sustainability matters and global, regional and local weather conditions as well as by legal, regulatory, and market responses to climate change

RISKS RELATED TO OUR OPERATIONS

1. 13We are subject to cybersecurity and information technology risks related to breaches of security pertaining to sensitive company, customer, employee and vendor information as well as breaches in the technology used to manage operations and other business processes
2. 14The current cyber threat environment presents increased risk for all companies, including those in
3. 15We are subject to a wide variety of laws, regulations and other government requirements that may change in significant ways, and the cost of compliance with such requirements, or the failure to comply with such requirements, could impact our business and results of operations
4. 16requirements on data collection, use and processing activities
5. 17Material disruptions at one of our manufacturing facilities could negatively impact financial results
6. 18We operate in a challenging market for talent and may fail to attract and retain qualified personnel, including key management personnel
7. 19Our failure to maintain good employee or labor relations may affect our respective operations
8. 20We may be unable to realize the expected benefits and cost savings associated with restructuring initiatives, including our 80/20 strategic approach
9. 21We may not achieve the expected benefits from strategic acquisitions, joint ventures, divestitures, spin-offs, capital investments, capital projects and other corporate transactions that are or will be pursued
10. 22Corporate transactions of this nature that we may pursue involve a number of special risks, including
11. 23There are risks associated with our review of strategic options for our Global Cellulose Fibers business, and there is no assurance that this review will result in any transaction or other outcome
12. 24Our continued growth will depend on our ability to retain existing customers and attract new customers
13. 25Uninsured losses or losses in excess of our insurance coverage for various risks could have an adverse financial effect on our business
14. 26We may not be able to adequately secure and protect our intellectual property rights, which could harm our competitive advantage
15. 27We may fail to identify or leverage digital and/or AI transformation initiatives

RISKS RELATED TO LEGAL PROCEEDINGS AND COMPLIANCE COSTS

1. 28Results of legal proceedings could have a material effect on our consolidated financial results
2. 29We could be exposed to liability for Brazilian taxes under our agreements with Sylvamo Corporation

RISKS RELATED TO OUR INDEBTEDNESS

1. 30Changes in credit ratings issued by nationally recognized statistical rating organizations could adversely affect our cost of financing and have an adverse effect on the market price of our securities
2. 31post collateral for derivatives in a net liability position. The desire to maintain an investment grade rating may cause us to take certain actions designed to improve our respective cash flow, including a sale of assets, suspension or reduction of dividends and reductions in capital expenditures and working capital
3. 32The level of our indebtedness could adversely affect our financial condition and impair our ability to operate our business
4. 33We are subject to risks associated with variable rate debt
5. 34Downgrades in the credit ratings of banks issuing certain letters of credit will increase our cost of maintaining certain indebtedness and may result in the acceleration of deferred taxes

RISKS RELATED TO OUR PENSION AND HEALTHCARE COSTS

1. 35Our pension and health care costs are subject to numerous factors which could cause these costs to change
2. 36Our U.S. funded pension plan is currently fully funded on a projected benefit obligation basis; however, the possibility exists that over time we may be required to make cash payments to the plan, reducing the cash available for our business