Johnson Controls International (JCI) risk factors, 2024 10-K

Risks Related to Our Business Operations

1. 01Our future growth is dependent upon our ability to develop or acquire new products, services and technologies that achieve market acceptance with acceptable margins
2. 02Failure to increase organizational effectiveness through the execution of our operating model and organizational improvements may reduce our profitability or adversely impact our business
3. 03Our business success depends on attracting and retaining qualified personnel
4. 04Failure to achieve and maintain a high level of product and service quality could damage our reputation with customers and negatively impact our results
5. 05Cybersecurity incidents impacting our IT systems and digital products could disrupt business operations, result in the loss of critical and confidential information, and materially and adversely affect our reputation and results of operations
6. 06Data privacy, identity protection and information security compliance may require significant resources and presents certain risks
7. 07We are incorporating artificial intelligence technologies into our products, services and processes. These technologies may present business, compliance and reputational risks
8. 08Infringement or expiration of our intellectual property rights, or allegations that we have infringed upon the intellectual property rights of third parties, could negatively affect us
9. 09We rely on our global direct installation channel for a significant portion of our revenue. Failure to maintain and grow the installed base resulting from direct channel sales could adversely affect our business
10. 10Global climate change and related regulations could negatively affect our business
11. 11Failure to achieve our public sustainability commitments could negatively affect our reputation and business
12. 12The ability of suppliers to deliver raw materials, parts and components to our manufacturing facilities, and our ability to manufacture and deliver services without disruption, could affect our results of operations
13. 13A material disruption of our operations due to catastrophic or geopolitical events, particularly at our monitoring and/or manufacturing facilities, could materially and adversely affect our business
14. 14Our business may be adversely affected by work stoppages, union negotiations, labor disputes and other matters associated with our labor force

Risks Relating to Strategic Transactions

1. 15We may not realize the benefits of our ongoing efforts to simplify our portfolio
2. 16We may be unable to successfully execute or effectively integrate acquisitions or joint ventures
3. 17businesses. Competition for acquisition opportunities may rise, thereby increasing our costs of making acquisitions or causing us to refrain from making further acquisitions
4. 18Risks associated with joint venture investments may adversely affect our business and financial results

Risks Related to Macroeconomic and Political Conditions

1. 19Some of the industries in which we operate are cyclical and, accordingly, demand for our products and services could be adversely affected by downturns in these industries
2. 20negative effect on investment in large capital projects, including necessary maintenance and upgrades, even during periods of favorable end-market conditions
3. 21Risks associated with our non-U.S. operations could adversely affect our business, financial condition and results of operations
4. 22Changes in U.S. or foreign trade policies and other factors beyond our control may adversely impact our business and operating results
5. 23Economic, political, credit and capital market conditions could adversely affect our financial performance, our ability to grow or sustain our business and our ability to access the capital markets
6. 24Volatility in commodity prices may adversely affect our results of operations

Risks Related to Government Regulations

1. 25Our businesses operate in regulated industries and are subject to a variety of complex and continually changing laws and regulations
2. 26substantial fines. If laws and regulations were to change or if we or our products failed to comply, our business, financial condition and results of operations could be adversely affected
3. 27We are subject to requirements relating to environmental and safety regulations and environmental remediation matters which could adversely affect our business, results of operation and reputation
4. 28We are subject to risks arising from regulations applicable to companies doing business with the U.S. government

Risks Related to Litigation

1. 29Potential liability for environmental contamination could result in substantial costs
2. 30We are party to asbestos-related product litigation that could adversely affect our financial condition, results of operations and cash flows
3. 31Legal proceedings in which we are, or may be, a party may adversely affect us

Risks Related to Tax Matters

1. 32Future potential changes to the tax laws could adversely affect us and our affiliates
2. 33Changes to the U.S. model income tax treaty could adversely affect us
3. 34Negative or unexpected tax consequences could adversely affect our results of operations

Risks Relating to Our Jurisdiction of Incorporation

1. 35Irish law differs from the laws in effect in the U.S. and may afford less protection to holders of our securities
2. 36Transfers of Johnson Controls ordinary shares may be subject to Irish stamp duty
3. 37Dividends paid by us may be subject to Irish dividend withholding tax
4. 38Dividends received by investors could be subject to Irish income tax
5. 39The potential insolvency or financial distress of third parties could adversely impact our business and results of operations

Risks related to our defined benefit retirement plans may adversely impact our results of operations and cash flow

1. 40A variety of other factors could adversely affect the results of operations of our business