Resideo Technologies (REZI) risk factors, FY2024 10-K

Other

1. 01You should carefully consider all of the information in this Form 10-K and each of the risks described below, which we believe are the material risks that we face

Risks Relating to Our Business

1. 02We operate in highly competitive markets that are rapidly changing
2. 03exclusive supply relationships, our ability to attract and retain customers could be adversely affected, which could adversely affect our business, financial condition, results of operations and cash flows
3. 04considerations that have not historically affected our business in markets with more established intellectual property protection systems
4. 05Uncertainty in the development, deployment, and use of artificial intelligence (“AI”) in our products and services, as well as our business more broadly, could adversely affect our business and reputation
5. 06We rely on certain suppliers of products, materials, and components and are otherwise subject to raw material supply variability with our suppliers which may impact our ability to meet commitments to customers and cause us to incur significant liabilities
6. 07We may from time to time pursue acquisitions. Our business may be adversely affected if we cannot consummate acquisitions on satisfactory terms, or if we cannot effectively integrate acquired companies or assets
7. 08Our business is subject to the risks of earthquakes, hurricanes, tornadoes, fires, power outages, floods, pandemics, epidemics, natural disasters, and other catastrophic events or other public health emergencies
8. 09Market and economic conditions may adversely affect the economic conditions of our customers, demand for our products and services, and our results of operations
9. 10Failure to achieve and maintain a high level of product and service quality could damage our reputation with customers and negatively impact our results
10. 11We may not be able to retain or expand relationships with certain significant customers
11. 12Failure to increase productivity through sustainable operational improvements, as well as an inability to successfully execute transformation programs or to effectively manage our workforce, may reduce our profitability or adversely impact our businesses
12. 13We are subject to the economic, political, regulatory, foreign exchange, and other risks of international operations
13. 14made disasters, hazards and losses; backlash from foreign labor organizations related to our restructuring actions; violence; civil and labor unrest; acts of terrorism; and our ability to hire and maintain qualified staff and maintain the safety of our employees in these regions
14. 15We rely on a dependable information technology (“IT”) infrastructure and network operations that have adequate cybersecurity functionality
15. 16Enhanced tariff, import/export restrictions, or other trade barriers may have an adverse impact on global economic conditions
16. 17Regulations and societal actions to respond to global climate change could negatively affect our business

Risks Relating to Legal and Regulatory Matters

1. 18Failure to comply with the broad range of standards, laws, and regulations in the jurisdictions in which we operate may result in exposure to substantial disruptions, costs, and liabilities
2. 19We cannot predict with certainty the outcome of litigation matters, government proceedings, and other contingencies and uncertainties
3. 20We have incurred, and may continue to incur, significant costs in connection with some or all of these matters

Risks related to the Spin-Off, our agreements and our relationships with Honeywell

1. 21We may not be able to resolve any potential conflicts, and, even if we do so, the resolution may be less favorable to us than if we were dealing with a party other than our former parent company
2. 22control of Resideo or the sale of any interests in any subsidiary of Resideo may impact our ability to enter into transactions that are otherwise in the best interests of our stockholders
3. 23The terms of our debt documents may impose restrictions on our business and our operations require substantial capital and we may not be able to obtain additional capital that we need in the future on favorable terms or at all

Risks Relating to Our Common Stock and the Securities Market

1. 24Our stock price has been volatile; stockholder’s percentage ownership in our Company may be diluted in the future
2. 25The preferred stock issued in connection with the Snap One transaction has rights, preferences, and privileges that are not held by, and are preferential to, the rights of our common stock and has reduced the relative voting power of the holders of our common stock
3. 26Certain provisions in our governing documents may discourage takeovers
4. 27We depend on the recruitment and retention of qualified personnel, and our failure to attract and retain such personnel could adversely affect our business, financial condition, results of operations, and cash flows
5. 28Our effective tax rate will be affected by factors including changes in tax rules, and in the interpretation and application of those rules, in the countries in which we operate
6. 29Currency exchange rate fluctuations and financial counterparty risks may adversely affect our results
7. 30If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired and investors’ views of us could be harmed
8. 31If our goodwill, other intangible assets and long-lived assets become impaired, we may be required to record a significant charge to earnings
9. 32We may be required to make significant cash contributions to our defined benefit pension plans