RPM International (RPM) risk factors, FY2025 10-K

Other

1. 01Our operations and financial condition could be adversely affected by global and regional economic conditions and trends in ways we may not be able to predict or control
2. 02Global economic and capital market conditions may cause our access to capital to be more difficult in the future and/or costs to secure such capital more expensive
3. 03Volatility in the equity markets or interest rates could substantially increase our pension costs and required pension contributions
4. 04A public health crisis could cause disruptions to our operations which could adversely affect our business in the future
5. 05Terrorist activities and other acts of violence, civil unrest, or war could negatively impact the locations or industries in which we compete, our operations, and our profitability
6. 06Catastrophic events, severe weather conditions and natural disasters may reduce the demand for some of our products, impair our ability to meet our demand for such products or cause supply chain disruptions which could have a negative effect on our operations and sales
7. 07Significant foreign currency exchange rate fluctuations may harm our financial results

FINANCIAL RISKS

1. 08The use of accounting estimates involves judgment and could impact our financial results
2. 09The results of our annual and, as-required, interim testing of goodwill and other long-lived assets have required, and in the future may result in additional substantial impairment charges
3. 10"Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets," and Note C, "Goodwill and Other Intangible Assets," to our Consolidated Financial Statements as presented below
4. 11Our significant amount of indebtedness could have a material adverse impact on our business
5. 12have a material adverse effect on our short-term liquidity if large debt maturities occur in close succession

OPERATIONAL RISKS

1. 13Operating improvement initiatives, including digital and physical consolidation efforts, may increase our operational risks and could cause us to incur significant expenses and impact the trading value of our common stock
2. 14Fluctuations in the supply and cost of raw materials, energy or other resources may negatively impact our financial results
3. 15The markets in which we operate are highly competitive and some of our competitors are much larger than we are and may have greater financial resources than we do
4. 16Our success depends upon our ability to identify, attract, retain and develop key associates and the succession of senior management
5. 17We depend on a few key customers for a significant portion of our net sales and, therefore, significant declines in the level of purchases by any of these key customers could harm our business
6. 18If our efforts to acquire and integrate other companies or product lines fail or we encounter difficulties associated with divestitures our business may not grow or realize anticipated benefits from these acquisitions or divestitures
7. 19increases in our indebtedness and contingent liabilities, which could in turn restrict our ability to raise additional capital when needed or to pursue other important elements of our business strategy
8. 20We derive a significant amount of our revenues from foreign markets, which subjects us to additional business risks that could adversely affect our results of operations
9. 21Cybersecurity threats, data privacy compliance, and use of artificial intelligence could have a negative impact on our business
10. 22Cyber-attacks or breaches due to security vulnerabilities, associate error, supplier or third-party error, malfeasance or other disruptions may occur. We may be subject to attempts to gain unauthorized access to our data, information technology systems and/or applications
11. 23Our business and financial condition could be adversely affected if we are unable to protect our intellectual property and other proprietary information or there is a loss in the actual or perceived value of our brands
12. 24Although we have insurance, it may not cover every potential risk associated with our operations
13. 25If our efforts to achieve stated sustainability goals, targets or objectives fail, or we fail to effectively respond to changing regulatory requirements related to climate change, our business and reputation may be adversely affected

LEGAL AND REGULATORY RISKS

1. 26The industries in which we operate expose us to inherent risks of legal and warranty claims and other litigation-related risks and costs, which could adversely impact our business
2. 27Compliance with environmental, sustainability, health and safety and other laws and regulations could subject us to unforeseen future expenditures or liabilities, which could have a material adverse effect on our business
3. 28Our businesses are subject to varying domestic and foreign laws and regulations that may restrict or adversely impact our ability to conduct our business
4. 29We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar anti-bribery laws of other countries, as well as trade sanctions administered by the office of Foreign Assets Control and the Department of Commerce
5. 30We could be adversely affected by or incur liability for the actions or inaction of our third parties
6. 31We are subject to the effect of tax law changes in all the jurisdictions in which we operate, some of which may be retroactive in application
7. 32We could be adversely affected by failure to comply with federal, state and local government procurement regulations and requirements