What the changes say
- Tariffs and trade policy changes now explicitly threaten the supply of luxury vinyl tile from South Korea and rubber flooring from Germany.
- Cyberattack risks shift focus from the past November 2022 event to ongoing and future security expenses.
- Foreign currency impact text changed from a strengthening U.S. dollar to a weakening dollar.
What changed since the prior 10-K
New
- New
Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operations
New tariffs and trade policies threaten our luxury vinyl tile sourced from South Korea and rubber flooring manufactured in Germany.
- New
Following the Cyber Event, we implemented measures to enhance our cybersecurity protections against, and reduce the potential of, any future cybersecurity attack. We expect to incur ongoing costs to enhance cybersecurity with the goal of preventing unauthorized access to, or manipulation of, our systems and data
Post-cyber event security enhancements will require ongoing costs, and we may still face future IT disruptions and rising defense expenses.
Dropped
- Dropped
Any of these events which deny us use of vital IT systems may seriously disrupt our normal business operations. These disruptions may lead to production or shipping stoppages, which may in turn lead to material revenue loss and reputational harm
- Dropped
However, there is no guarantee that these enhancements and steps will be adequate to mitigate future losses due to IT system disruptions, and we may incur significant expense in correcting and recovering from future disruptions
- Dropped
The uncertainty surrounding the ongoing implementation and effect of the U.K.’s exit from the European Union, and related negative developments in the European Union, could adversely affect our business, results of operations or financial condition
Reworded
- 78% rewritten
Disruptions to or failures of information technology systems we use could adversely affect our business
Updated heading to focus generally on disruptions rather than specific operational impacts, while retaining the core IT systems dependency list.
- 46% rewritten
Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to offset them or pass these cost increases through to our customers
Added new or increased tariffs and potential retaliatory tariffs as factors impacting raw material and shipping costs alongside petroleum-based feedstock.
Was: Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to pass these cost increases through to our customers
- 34% rewritten
Sales of our principal products have been and may continue to be affected by adverse economic conditions and cycles, and effects in the new construction market and renovation market
Expanded macroeconomic risk factors to explicitly include government shutdowns, tariff implementations, and global conflicts alongside commercial renovation cycles.
Was: Sales of our principal products have been and may continue to be affected by adverse economic cycles, and effects in the new construction market and renovation market
- 34% rewritten
Public health crisis events, such as epidemics or pandemics, have in the past adversely impacted, and may in the future impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations
Updated pandemic references by specifying the COVID-19 pandemic as a past event while retaining future public health crisis warnings.
Was: Health crisis events, such as epidemics or pandemics, have adversely impacted, and may continue to impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations
- 34% rewritten
Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations
Changed the foreign currency impact from a strengthening U.S. dollar to a weakening U.S. dollar against foreign currencies.
- 33% rewritten
We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness
Removed references to the indenture governing our Senior Notes when discussing restrictions on incurring additional indebtedness under our Syndicated Credit Facility.
- 25% rewritten
Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets
Streamlined the $36.2 million fourth quarter 2022 goodwill impairment charge disclosure by removing the word 'recent' before years.
All 21 risk factors
Headings as the filing states them, in filing order.
Other
- 01Risk Factors Related to our Business and Operations
- 02We compete with a large number of manufacturers in the highly competitive floorcovering products market, and some of these competitors have greater financial resources than we do. We may face challenges competing on price, making investments in our business, or competing on product design or sustainability
- 03Our earnings could be adversely affected by non-cash adjustments to goodwill, when a test of goodwill assets indicates a material impairment of those assets25% rewritten
- 04Our success depends significantly upon the efforts, abilities and continued service of our senior management executives, our principal design consultant and other key personnel (including experienced sales and manufacturing personnel), and our loss of any of them could affect us adversely
- 05Changes in foreign trade policies and tariffs may adversely impact our business, financial condition, and results of operationsNew
- 06Large increases in the cost of our raw materials, shipping costs, duties or tariffs could adversely affect us if we are unable to offset them or pass these cost increases through to our customers46% rewritten
- 07Unanticipated termination or interruption of any of our arrangements with our primary third-party suppliers of synthetic fiber or our primary third-party supplier for luxury vinyl tile (“LVT”) or other key raw materials could have a material adverse effect on us
- 08Our business operations could suffer significant losses from natural disasters, acts of war, terrorism, catastrophes, fire, adverse weather conditions, pandemics, endemics, unstable geopolitical situations or other unexpected events
- 09The market price of our common stock has been volatile and the value of your investment may decline
- 10Sales of our principal products have been and may continue to be affected by adverse economic conditions and cycles, and effects in the new construction market and renovation market34% rewritten
- 11Disruptions to or failures of information technology systems we use could adversely affect our business78% rewritten
- 12Following the Cyber Event, we implemented measures to enhance our cybersecurity protections against, and reduce the potential of, any future cybersecurity attack. We expect to incur ongoing costs to enhance cybersecurity with the goal of preventing unauthorized access to, or manipulation of, our systems and dataNew
- 13The impact of potential changes to environmental laws and regulations and industry standards regarding climate change and other sustainability matters could lead to unforeseen disruptions to our business operations
- 14Public health crisis events, such as epidemics or pandemics, have in the past adversely impacted, and may in the future impact, the economy and disrupt our operations and supply chains, which may have an adverse effect on our results of operations34% rewritten
- 15Our substantial international operations are subject to various political, economic and other uncertainties that could adversely affect our business results, including restrictive taxation, custom duties, tariffs, border closings or other adverse government regulations
- 16Given the nature of our business and our global operations, political, economic, and other conditions in foreign countries and regions, including geopolitical risks arising from the conflicts between Russia and Ukraine and the Middle East, may adversely affect our business, results of operations and financial position
- 17Fluctuations in foreign currency exchange rates have had, and could continue to have, an adverse impact on our financial condition and results of operations34% rewritten
- 18We have a substantial amount of debt and debt service requirements. As of December 28, 2025, we had approximately $181.8 million of outstanding debt, and we had $243.2 million of undrawn borrowing capacity under our Syndicated Credit Facility
- 19Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our operations to pay our indebtedness
- 20We may incur substantial additional indebtedness, which could further exacerbate the risks associated with our substantial indebtedness33% rewritten
- 21We face risks associated with litigation and claims
Other Interface 10-Ks
- FY2024 10-K risk factors22 risks
Risk profile centers on intense floorcovering competition, supply chain concentration for synthetic fibers and luxury vinyl tile, and commercial real estate market cycles.
Filed Feb 26, 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.