Illinois Tool Works (ITW) risk factors, FY2025 10-K

Other

1. 01The Company's results are impacted by global economic conditions. Downturns in the markets served by the Company could adversely affect its businesses, results of operations or financial condition
2. 02The global nature of the Company's operations subjects it to political, economic and social risks that could adversely affect its business, results of operations or financial condition
3. 03A significant fluctuation between the U.S. Dollar and other currencies could adversely impact the Company's operating income

Business and Operational Risks

1. 04The benefits from the Company's enterprise strategy may not be as expected and the Company's financial results could be adversely impacted, or the Company may not meet its long-term financial performance targets
2. 05The timing and amount of the Company's share repurchases are subject to a number of uncertainties
3. 06If the Company is unable to successfully introduce new products, its future growth may be adversely affected
4. 07If the Company is unable to adequately protect its intellectual property, its competitive position and results of operations may be adversely impacted
5. 08The Company has significant goodwill and other intangible assets, and future impairment of these assets could have a material adverse impact on the Company's financial results
6. 09Raw material price increases and supply shortages could adversely affect results
7. 10The Company's defined benefit pension plans are subject to financial market risks that could adversely affect its results of operations and cash flows

Strategic Transaction Risks

1. 11The Company's acquisition of businesses could negatively impact its profitability and returns
2. 12Divestitures pose the risk of retained liabilities that could adversely affect the Company's financial results

Tax, Legal and Regulatory Risks

1. 13Unfavorable tax law changes and tax authority rulings may adversely affect results
2. 14Adverse outcomes in legal proceedings or enforcement actions may adversely affect results
3. 15Uncertainty related to environmental regulation and industry standards, as well as physical risks of climate change, could impact the Company's results of operations and financial position
4. 16The Company may incur fines or penalties, damage to its reputation or other adverse consequences if its employees, agents or business partners violate anti-bribery, competition, export and import, trade sanctions, data privacy, environmental, artificial intelligence, human rights or other laws
5. 17Forward-Looking Statements
6. 18Any forward-looking statements made by ITW speak only as of the date on which they are made. ITW is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise, except as required by law