What the changes say
- Trade tensions now specifically include European countries, while China risks emphasize tariffs and barriers affecting 24% of net sales.
- The One Big Beautiful Bill Act adds a specific U.S. tax-law risk to the effective-tax-rate discussion.
- Growth priorities in data centers, aerospace and defense, energy storage, and grid infrastructure increase forecasting uncertainty.
- Senior-management changes and exposure to copper, zinc, tin, gold, silver, and ruthenium are newly highlighted.
What changed since the prior 10-K
Reworded
- 69% rewritten2) Regulatory Risks
Changes in U.S. and other countries trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business and results of operations
The trade-policy risk now expressly includes tariffs and import/export controls involving various European countries, in addition to China, Mexico, and Canada.
- 69% rewritten3) Financial Risks
The Company’s effective tax rate could materially increase as a consequence of various factors, including U.S. and/or international tax legislation, mix of the Company’s earnings by jurisdiction, and U.S. and non-U.S. jurisdictional tax audits
The discussion now identifies the July 4, 2025 One Big Beautiful Bill Act, including extensions of Tax Act provisions and international-tax changes.
- 64% rewritten3) Financial Risks
Ineffective internal controls could impact the accuracy and timely reporting of our business and financial results
No substantive change; the internal-control risk retains the same potential reporting errors, remediation costs, and investor-confidence effects.
Was: We have identified a material weaknesses in our internal control over financial reporting, and ineffective internal controls could impact the accuracy and timely reporting of our business and financial results
- 53% rewritten1) Operational Risks
The Company’s industry is subject to intense competitive pressures
The company added innovation as a competitive factor and identified data centers, aerospace and defense, energy storage, and grid infrastructure as priority markets with forecasting uncertainty.
- 50% rewritten1) Operational Risks
Failure to attract and retain qualified personnel could affect the Company’s business results
The company newly warns that past or future senior-management changes could disrupt operations and hurt business results.
- 32% rewritten1) Operational Risks
The Company may be unable to manufacture and deliver products in a manner that is responsive to its customers’ needs
The wording now attributes potentially changing product life cycles specifically to technology developments or other factors.
- 32% rewritten3) Financial Risks
The Company’s ability to manage currency or commodity price fluctuations or supply shortages is limited
The company now identifies copper, zinc, tin, gold, silver, and ruthenium as metals used in manufacturing, without discussing prior hedging limitations.
- 26% rewritten2) Regulatory Risks
The Company's customers, suppliers, employees and operations are located in numerous countries around the world, and contribute significantly to its revenues and earnings. Sales to customers outside the U.S. constituted approximately 65% of the Company's net sales in fiscal 2025, including approximately 24% to China
The risk now quantifies international exposure at 65% of fiscal 2025 net sales, including 24% to China, and highlights recent or proposed U.S.-China tariffs and trade barriers.
Was: The Company's customers, suppliers, employees and operations are located in numerous countries around the world, and contribute significantly to its revenues and earnings. Sales to customers outside the U.S. constituted approximately 63% of the Company's net sales in fiscal 2024, including approximately 23% to China
- 25% rewritten3) Financial Risks
A decline in expected profitability of the Company or individual reporting units of the Company could result in the impairment of assets, including goodwill and other long-lived assets
- 23% rewritten3) Financial Risks
The volatility of the Company’s stock price could affect the value of an investment in the Company’s stock and future financial position
All 26 risk factors
Headings as the filing states them, in filing order.
1) Operational Risks
- 01The Company’s industry is subject to intense competitive pressures53% rewritten
- 02The Company engages in strategic acquisitions and may not realize the anticipated benefits of the acquisitions and / or may encounter difficulties in integrating these businesses
- 03Disruptions in the Company’s manufacturing, supply or distribution chain could result in an adverse impact on results of operations
- 04The Company may be unable to manufacture and deliver products in a manner that is responsive to its customers’ needs32% rewritten
- 05The Company’s business may be interrupted by labor disputes or other interruptions of supplies
- 06Failure to attract and retain qualified personnel could affect the Company’s business results50% rewritten
- 07The Company may not be successful in protecting its intellectual property
- 08The Company may incur material losses and costs as a result of defects in its products, including as a result of warranty claims, product recalls, and product liability
2) Regulatory Risks
- 09Climate change, and the regulatory and legislative developments related to climate change, may have a material adverse impact on our business and results of operations
- 10Changes in U.S. and other countries trade policy, including the imposition of tariffs and the resulting consequences, may have a material adverse impact on our business and results of operations69% rewritten
- 11The Company's customers, suppliers, employees and operations are located in numerous countries around the world, and contribute significantly to its revenues and earnings. Sales to customers outside the U.S. constituted approximately 65% of the Company's net sales in fiscal 2025, including approximately 24% to China26% rewritten
- 12Environmental liabilities could adversely impact the Company’s financial position
3) Financial Risks
- 13The Company’s effective tax rate could materially increase as a consequence of various factors, including U.S. and/or international tax legislation, mix of the Company’s earnings by jurisdiction, and U.S. and non-U.S. jurisdictional tax audits69% rewritten
- 14The tax rates applicable in the jurisdictions within which the Company operates vary widely. Therefore, the Company’s effective tax rate may be adversely affected by changes in the mix of its earnings by jurisdiction
- 15The Company’s ability to manage currency or commodity price fluctuations or supply shortages is limited32% rewritten
- 16A significant fluctuation between the U.S. dollar and other currencies could adversely impact the Company's revenue and earnings
- 17The Company’s revenues may vary significantly from period to period
- 18Reorganization activities may lead to additional costs and material adverse effects
- 19A decline in expected profitability of the Company or individual reporting units of the Company could result in the impairment of assets, including goodwill and other long-lived assets25% rewritten
- 20Ineffective internal controls could impact the accuracy and timely reporting of our business and financial results64% rewritten
- 21The bankruptcy or insolvency of a major customer could adversely affect the Company
- 22The inability to maintain access to capital markets may adversely affect the Company’s business and financial results
- 23Fixed costs may reduce operating results if sales fall below expectations
- 24The volatility of the Company’s stock price could affect the value of an investment in the Company’s stock and future financial position23% rewritten
- 25The Company is exposed to, and may be adversely affected by, potential security breaches or other disruptions to its information technology systems and data security
- 26Customer demands and regulations related to conflict-free minerals may force the Company to incur additional expenses
Other Littelfuse 10-Ks
- FY2024 10-K risk factors27 risks
International exposure dominates: 63% of fiscal 2024 sales were outside the U.S., including 23% to China.
Filed Mar 13, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.