TE Connectivity (TEL) risk factors, FY2024 10-K

Risks Relating to the Macroeconomic Environment and Our Global Presence

1. 01Conditions in global or regional economies, capital and money markets, and banking systems, and cyclical industry demand may adversely affect our results of operations, financial position, and cash flows
2. 02Foreign currency exchange rates may adversely affect our results
3. 03We have suffered and could continue to suffer business interruptions, including impacts resulting from pandemics, weather conditions, and natural catastrophic events, including those caused or intensified by climate change and global warming, and other macroeconomic factors
4. 04We could be adversely affected by a decline in the market value of our pension plans’ investment portfolios or a reduction in returns on plan assets
5. 05Disruption in credit markets and volatility in equity markets may affect our ability to access sufficient funding
6. 06Global political, economic, and military instability could negatively affect sales or profitability
7. 07the impact of each of the foregoing on our outsourcing and procurement arrangements
8. 08We are subject to, and may continue to be subject to, incremental costs, risks, and regulations associated with efforts to combat the negative effects of climate change
9. 09Increasing scrutiny and expectations regarding environmental, social, and governance (“ESG”) matters could result in additional costs or risks or otherwise adversely impact our business

Risks Relating to the Industry in Which We Operate

1. 10We are dependent on the automotive and other industries and significant periodic downturns have had material adverse effects on our results of operations, financial position, and cash flows
2. 11We encounter competition in substantially all areas of the electronic components industry, which has and could in the future negatively impact our prices, margins, and market share
3. 12We are dependent on market acceptance of our new product introductions and product innovations for future revenue and failure of such introductions or innovations in a timely manner could cause our operating results to suffer
4. 13The pace of technological change continues to accelerate and our ability to react effectively to such change may present significant competitive risks
5. 14Risks and uncertainties related to the development and use of AI could harm our business, damage our reputation, or give rise to legal or regulatory action
6. 15Pressure to lower our prices has and may in the future result in price erosion
7. 16We may be negatively affected as our customers and vendors continue to consolidate
8. 17The life cycles of certain of our products can be very short and may not result in material revenue and may cause us to write off excess or obsolete inventory or equipment
9. 18We may incur material losses and costs as a result of product liability, warranty, and product recall claims that may be brought against us

Risks Relating to Our Operations

1. 19Our results are sensitive to raw material availability, quality, and cost and shortages, deteriorations in quality, or price increases could lead to a materially negative impact on our results of operations, financial position, and cash flows
2. 20Poor quality of components and products manufactured by third parties could harm our business
3. 21Our future success is significantly dependent on our ability to attract and retain management and executive management employees
4. 22Cybersecurity incidents and other disruptions affecting our information technology infrastructure or violations of data privacy laws have and could interfere with our operations, compromise confidential information, and expose us to liability which could materially adversely impact our business and reputation
5. 23Covenants in our debt instruments may adversely affect us
6. 24The market price of our shares may fluctuate widely

Risks Relating to Strategic Transactions

1. 25Future acquisitions may not be successful
2. 26Future acquisitions could require us to issue additional debt or equity that may not be available on acceptable terms and could be dilutive
3. 27Divestitures of some of our businesses or product lines may have a material adverse effect on our results of operations, financial position, and cash flows

Risks Relating to Intellectual Property, Litigation, and Regulations

1. 28Our ability to compete effectively depends, in part, on our ability to maintain the proprietary nature of our products and technology
2. 29Litigation, regulatory actions, and compliance issues have and could subject us to fines, penalties, judgments, remediation costs, and/or other requirements that could cause a material adverse effect on our results of operations, financial position, and cash flows
3. 30If any of our operations are found not to comply with applicable antitrust or competition laws or applicable trade regulations, our business may suffer
4. 31We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act, the United Kingdom’s Bribery Act, and similar worldwide anti-bribery laws
5. 32Our operations expose us to the risk of material environmental liabilities, litigation, government enforcement actions, and reputational risk
6. 33the importation of regulated or banned chemicals
7. 34Our products are subject to various requirements related to chemical usage, hazardous material content, recycling, and other circular economy initiatives

Risks Relating to Our Irish Jurisdiction of Incorporation

1. 35The laws of Ireland differ from the laws in effect in the U.S. and may afford less protection to holders of our securities
2. 36As an Irish public limited company, certain decisions related to our capital structure will require the approval of shareholders, which may limit our flexibility to manage our capital structure
3. 37Provisions of our articles of association could delay or prevent a third-party’s effort to acquire us
4. 38Transfers of our ordinary shares may be subject to Irish stamp duty
5. 39Dividends you receive may be subject to Irish dividend withholding tax
6. 40Dividends paid in respect of our ordinary shares generally are not subject to Irish income tax where the beneficial owner of these dividends is exempt from dividend withholding tax, unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in TE Connectivity plc
7. 41Our ordinary shares received by means of a gift or inheritance could be subject to Irish capital acquisitions tax
8. 42Global legislative and regulatory actions and proposals could cause a material change in our worldwide effective corporate tax rate and our global cash taxes
9. 43tax policy changes in the U.S., such as additional federal tax reform measures and new tax regulations
10. 44Legislation in the U.S. could adversely impact our results of operations, financial position, and cash flows