What the changes say
- Stanley Black & Decker added artificial intelligence compliance risks while updating figures for customer concentration, goodwill, and intangible assets.
What changed since the prior 10-K
New
- NewLegal, Tax, Regulatory and Compliance Risks
The use of artificial intelligence in the Company’s business operations, products and services could expose it to legal and compliance risks as well as brand or reputational harm and competitive harm, any of which may adversely affect its results of operations
Using artificial intelligence in operations and products creates legal, regulatory, and reputational risks regarding data privacy, bias, and intellectual property.
Dropped
- DroppedLegal, Tax, Regulatory and Compliance Risks
jurisdictions could adversely affect the Company’s operations due to increased costs of compliance and potential liability for non-compliance
- DroppedLegal, Tax, Regulatory and Compliance Risks
The Company’s sales to government customers exposes it to business volatility and risks, including government budgeting cycles and appropriations, procurement regulations, governmental policy shifts, early termination of contracts, audits, investigations, sanctions and penalties
Reworded
- 64% rewrittenBusiness and Operational Risks
The Company’s success depends on its ability to improve productivity and streamline operations to control or reduce costs
Added production volume declines and manufacturing or distribution facility restructuring as factors mitigating cost-reduction savings.
- 55% rewrittenLegal, Tax, Regulatory and Compliance Risks
Significant judgment and certain estimates are required in determining the Company’s worldwide provision for income taxes. Future tax law changes and audit results may materially increase the Company’s prospective income tax expense
Removed the sentence stating the Company is routinely audited by income tax authorities in many tax jurisdictions.
- 49% rewrittenLegal, Tax, Regulatory and Compliance Risks
The Company’s failure to continue to successfully avoid, manage, defend, litigate and accrue for claims and litigation could negatively impact its results of operations or cash flows
Added employment litigation to the list of legal proceedings and disputes the Company faces.
- 48% rewrittenBusiness and Operational Risks
If the Company were required to write-down all or part of its goodwill, indefinite-lived trade names, or other definite-lived intangible assets, its net income and net worth could be materially adversely affected
Updated asset figures for fiscal year ending January 3, 2026, reducing goodwill to approximately $7.3 billion and net definite-lived intangible assets to $0.8 billion.
- 45% rewrittenLegal, Tax, Regulatory and Compliance Risks
The Company’s products could be recalled
Added that regulatory bodies like the Consumer Product Safety Commission have required product recalls in the past.
- 43% rewrittenBusiness and Operational Risks
The Company’s business is subject to risks associated with the global trade environment, including customs and trade regulations, tariffs, quotas, import taxes and international trade agreements
Retained existing trade and tariff risks under Section 301 without adding new geographic specifics.
- 41% rewrittenBusiness and Operational Risks
The Company’s business is subject to risks associated with sourcing, manufacturing and maintaining appropriate inventory levels
Added inflation and deflation to the factors impacting supply chain constraints and material pricing.
- 32% rewrittenBusiness and Operational Risks
Changes in customer or end-user preferences, the inability to maintain mutually beneficial relationships with large customers, inventory reductions by customers, and the inability to penetrate new channels of distribution could adversely affect the Company’s business
Updated customer concentration figures for 2025, showing the two largest customers comprised 27% of consolidated net sales.
- 32% rewrittenLegal, Tax, Regulatory and Compliance Risks
Changing legislation, regulations, and market trends in response to climate change and other environmental-related concerns may adversely affect the Company's business
Was: Environmental legislation or regulations and changing market trends in response to climate change and other environmental related concerns may adversely affect the Company's business
- 32% rewrittenBusiness and Operational Risks
A material disruption of the Company's operations, particularly at its manufacturing facilities or within its information technology infrastructure, or its supply chain could adversely affect business
Was: A material disruption of the Company's operations, particularly at its manufacturing facilities or within its information technology infrastructure, could adversely affect business
- 31% rewrittenBusiness and Operational Risks
Customer consolidation could have a material adverse effect on the Company’s business
- 28% rewrittenLegal, Tax, Regulatory and Compliance Risks
Additionally, other countries have enacted or are enacting data localization laws that require data to stay within their borders. In many cases, these laws and regulations apply not only to transfers between unrelated third parties but also to transfers between the Company and its subsidiaries
- 26% rewrittenBusiness and Operational Risks
Low demand for new products and the inability to develop and introduce new products at favorable margins and on target timelines could adversely impact the Company’s performance and prospects for future growth
Was: Low demand for new products and the inability to develop and introduce new products at favorable margins could adversely impact the Company’s performance and prospects for future growth
- 22% rewrittenIndustry and Economic Risks
If the investments in employee benefit plans do not perform as expected, the Company may have to contribute additional amounts to these plans, which would otherwise be available to cover operating expenses or other business purposes
- 21% rewrittenIndustry and Economic Risks
The Company is exposed to market risk from changes in foreign currency exchange rates which could negatively impact profitability
All 31 risk factors
Headings as the filing states them, in filing order.
Business and Operational Risks
- 01The Company’s business is subject to risks associated with sourcing, manufacturing and maintaining appropriate inventory levels41% rewritten
- 02The Company’s business is subject to risks associated with the global trade environment, including customs and trade regulations, tariffs, quotas, import taxes and international trade agreements43% rewritten
- 03Changes in customer or end-user preferences, the inability to maintain mutually beneficial relationships with large customers, inventory reductions by customers, and the inability to penetrate new channels of distribution could adversely affect the Company’s business32% rewritten
- 04The Company faces active global competition and if it does not compete effectively, its business may suffer
- 05Customer consolidation could have a material adverse effect on the Company’s business31% rewritten
- 06Low demand for new products and the inability to develop and introduce new products at favorable margins and on target timelines could adversely impact the Company’s performance and prospects for future growth26% rewritten
- 07The pace of technological change continues to accelerate and the Company's ability to react effectively to such change may present significant competitive risks
- 08The Company has significant operations outside of the U.S., which are subject to political, legal, economic and other risks arising from international operations
- 09The Company’s success depends on its ability to improve productivity and streamline operations to control or reduce costs64% rewritten
- 10A material disruption of the Company's operations, particularly at its manufacturing facilities or within its information technology infrastructure, or its supply chain could adversely affect business32% rewritten
- 11If the Company were required to write-down all or part of its goodwill, indefinite-lived trade names, or other definite-lived intangible assets, its net income and net worth could be materially adversely affected48% rewritten
Strategic Risks
- 12The successful execution of the Company’s business strategy depends on its ability to recruit, retain, train, motivate, and develop employees and execute effective succession planning
- 13As part of the Company's strategy, it may divest businesses or assets, acquire businesses or assets, enter into strategic alliances and joint ventures, and make similar investments to further its business
Industry and Economic Risks
- 14Uncertainty about the financial stability of economies outside the U.S. could have a significant adverse effect on the Company's business, results of operations and financial condition
- 15Negative economic conditions and outlooks in the markets the Company serves may weaken demand for the Company’s products
- 16The Company is exposed to market risk from changes in foreign currency exchange rates which could negatively impact profitability21% rewritten
- 17The Company is exposed to counterparty risk in its hedging arrangements
- 18Tight capital and credit markets or the failure to maintain credit ratings could adversely affect the Company by limiting the Company’s ability to borrow or otherwise access liquidity
- 19Furthermore, there could be a number of follow-on effects from a credit crisis on the Company’s businesses, including insolvency of key suppliers resulting in product delays, inability of customers to obtain credit to finance purchases of the Company’s products and services and/or customer insolvencies
- 20The Company is exposed to credit risk on its accounts receivable
- 21If the investments in employee benefit plans do not perform as expected, the Company may have to contribute additional amounts to these plans, which would otherwise be available to cover operating expenses or other business purposes22% rewritten
Legal, Tax, Regulatory and Compliance Risks
- 22Cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact the Company's reputation, operating results, and financial condition
- 23The Company is exposed to risks related to compliance with data privacy and governance laws
- 24Additionally, other countries have enacted or are enacting data localization laws that require data to stay within their borders. In many cases, these laws and regulations apply not only to transfers between unrelated third parties but also to transfers between the Company and its subsidiaries28% rewritten
- 25The use of artificial intelligence in the Company’s business operations, products and services could expose it to legal and compliance risks as well as brand or reputational harm and competitive harm, any of which may adversely affect its results of operationsNew
- 26Significant judgment and certain estimates are required in determining the Company’s worldwide provision for income taxes. Future tax law changes and audit results may materially increase the Company’s prospective income tax expense55% rewritten
- 27Changing legislation, regulations, and market trends in response to climate change and other environmental-related concerns may adversely affect the Company's business32% rewritten
- 28The Company’s failure to continue to successfully avoid, manage, defend, litigate and accrue for claims and litigation could negatively impact its results of operations or cash flows49% rewritten
- 29The Company’s products could be recalled45% rewritten
Other Risks
- 30The Company’s results of operations and earnings may not meet guidance, planning assumptions or expectations
- 31The Company’s failure to maintain its reputation and the image of its brands could adversely impact its business
Other Stanley Black & Decker 10-Ks
- FY2024 10-K risk factors32 risks
The company relies heavily on large retail customers and international sourcing, exposing it to global supply chain and trade risks.
Filed Feb 18, 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.