Toro (TTC) risk factors, FY2025 10-K

Other

1. 01If we are unable to continue to enhance existing products and develop and market new products, demand for our products may decrease
2. 02Disruption and/or shortages in the availability of commodities, components, parts, or accessories has, and could continue to, adversely affect our business
3. 03Weather conditions, including conditions exacerbated by global climate change, present chronic and acute physical risks, and have previously impacted, and may continue to impact, demand for some of our products and/or cause disruptions in our operations
4. 04Our Professional segment includes a variety of products that depend on certain and varied factors
5. 05Our Residential segment net sales depend on several factors, including product placement, consumer confidence and spending levels, changing buying patterns of customers, and the impact of significant sales or promotional events
6. 06Changes in product mix could adversely impact our financial performance, including profit margins and net earnings
7. 07We face intense competition, which could harm our business and operating results
8. 08Our domain names are critical assets for informing consumers about our brand, but they are increasingly targeted by scamsNew
9. 09Increases in the cost of commodities, components, parts, and accessories or our other costs of doing business, have, and could continue to, adversely affect our profit margins and businesses
10. 10We are dependent upon the efficient operation of our facilities and those of our suppliers, channel customers, mass retailers, and home centers where our products are sold
11. 11Any failure by us, or our suppliers or channel partners, to hire and/or retain an adequate labor force could adversely affect our business, operating results, and reputation52% rewritten
12. 12business, or other factors, we, or our suppliers and channel partners, may not have a sufficient pool of individuals with the right skills and experience available to fulfill labor requirements on a cost-effective basis or otherwiseNew
13. 13Our net sales and/or working capital are negatively impacted when we underestimate or overestimate demand for our products or do not maintain appropriate inventory levels
14. 14Our business and operating results are subject to the inventory management decisions of our channel customers
15. 15Changes in composition of, financial viability of, and the relationships with, our channel customers could negatively impact our business and operating results
16. 16We are dependent upon the availability and terms of credit offered to our customers
17. 17We are dependent upon the effective operation of our information systems, software, or information security practices and those of our business partners or third-party service providers
18. 18Our international operations require significant management attention and financial resources, expose us to difficulties presented by international economic, political, legal, regulatory, accounting, and business factors, and may not be successful or produce desired levels of net sales and earnings
19. 19We are renovating and expanding certain office, manufacturing, and other facilities and could experience disruptions to our operations in connection with such efforts
20. 20Recently announced and future tariffs and other trade restrictions could materially and adversely affect our business, financial condition and results of operationsNew

Strategic Risks

1. 21Our strategy to pursue acquisitions and alliances, strong customer relations, and new joint ventures, investments, and partnerships and our recent activities related to Tornado Infrastructure Equipment in this regard involve risk and may not prove to be successful44% rewritten
2. 22Any of these risks could cause our strategic transactions, including the Tornado Infrastructure Equipment acquisition, not to be as profitable or accretive as expected or plannedNew
3. 23Failure to successfully complete divestitures or other restructuring activities could negatively affect our operations
4. 24Increased scrutiny regarding our sustainability practices could impact our reputation50% rewritten

Financial Risks

1. 25We may be required to incur impairment and other charges resulting from the impairment of goodwill or tangible or intangible assets recorded in connection with acquisitions or due to exit or disposal activitiesNew
2. 26Fluctuations in foreign currency exchange rates have adversely affected and could continue to adversely affect our operating results
3. 27We are subject to financial and operating restrictions and counterparty risk as a result of our credit arrangements
4. 28If we do not comply with the terms of our credit arrangements and indentures, they could be terminated and amounts thereunder could become due and payable
5. 29A downgrade in our credit ratings could increase our cost of funding and/or adversely affect our access to funding
6. 30Changes in accounting or tax standards and policies and/or assumptions utilized in determining accounting or tax estimates could adversely affect our results of operations and financial condition

Legal, Regulatory, and Compliance Risks

1. 31Our patents, trademarks, and contractual provisions may be insufficient to protect our proprietary rights and intellectual property from others who may sell similar products and our products may infringe the valid proprietary rights of others
2. 32We are subject to extensive laws, rules, policies, and regulations, with which our compliance is costly and not guaranteed
3. 33Climate change legislation, regulations, accords, mitigation efforts, or other legislation may adversely impact our operations and could impact the competitive landscape within our markets and affect demand for our products
4. 34Our compliance with applicable environmental laws is costly and not guaranteed
5. 35We are subject to product quality issues, product liability claims, and other litigation from time to time that could adversely affect our business, reputation, operating results, or financial condition
6. 36We operate in many different jurisdictions and we could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act ("FCPA") and similar worldwide anti-corruption laws
7. 37We may not achieve our financial projections, sustainability goals, or other business and productivity initiatives, which could have an adverse effect on our business, operating results, and financial condition
8. 38We are dependent upon our ability to attract and retain key executive and employees and successfully implement key employee transitions