Avery Dennison (AVY) risk factors: FY2025 10-K

1. The demand for our products is impacted by the effects of, and changes in, worldwide economic, geopolitical, social and labor conditions, which have had in the past and could in the future have a material adverse effect on our business.reworded
2. Foreign currency exchange rates, and fluctuations in those rates, affect our business.
3. Our operations and activities outside of the U.S. subject us to risks different from and potentially greater than those associated with our domestic operations.
4. Our strategy includes continuing to grow in emerging markets, which exposes us to less stable geopolitical conditions, civil unrest, economic volatility, and other risks applicable to operating in these regions.reworded

Read these in Item 1A · See the changes

1. As a manufacturer, our sales and profitability depend upon the availability and cost of raw materials and energy, which may be subject to significant price fluctuations, and our ability to control or offset increases in raw material and labor costs. Raw material and freight cost increases have impacted our business.
2. We are affected by changes in our markets due to competitive conditions, technological developments, laws and regulations, and customer preferences. If we do not compete effectively or respond appropriately to these changes, it could reduce demand for our products and solutions, or we could lose market share or reduce our selling prices to maintain market share, any of which could materially adversely affect our business.
3. We are affected by changes in our markets due to increasing environmental regulations and sustainability trends. If we do not respond appropriately to these changes, it could negatively impact customer demand, our market share and pricing, any of which could materially adversely affect our business. Adverse weather conditions and natural disasters, including those related to the impacts of climate change, have and can adversely affect our business.reworded
4. We have recently acquired companies and are likely to acquire other companies. Acquisitions come with significant risks and uncertainties, including those related to integration, technology and employees.
5. A significant consolidation of our customer base could negatively impact our business.
6. Because some of our products are sold by third parties, our business depends in part on the financial condition of these parties and their customers.
7. Our reputation, sales, and earnings could be materially adversely affected if the quality of our products and services does not meet customer expectations. In addition, product liability claims or regulatory actions could materially adversely affect our business and reputation.
8. Changes in our business strategies and the restructuring of our operations affect our costs and the profitability of our businesses. In addition, our profitability may be materially adversely affected if we generate less productivity improvement from our restructuring and other cost reduction actions than anticipated.
9. Our ability to develop and successfully market new products and applications impacts our competitive position.
10. Our infrastructure needs impact our business and expenditures.
11. Difficulty in the collection of receivables as a result of economic conditions or other market factors could have a material adverse effect on our business.
12. There is a rapidly evolving awareness and focus from certain stakeholders, including our investors, customers and employees, with respect to our company’s sustainability and governance practices, which could affect our business.

Read these in Item 1A · See the changes

1. Significant disruption to the information technology infrastructure that stores our information and runs our operations could materially adversely affect our business.
2. Cybersecurity or other security breaches could compromise our information and expose us to liability, which could have a material adverse effect on our business and reputation.Cybersecurity

Read these in Item 1A · See the changes

1. Changes in our tax rates affect our business.
2. Legislation implementing changes in taxation of business activities, adoption of other corporate tax policies, or other changes in tax legislation impact our business.
3. The amount of income taxes we pay is subject to ongoing compliance requirements and audits by federal, state and foreign tax authorities.reworded
4. We have deferred tax assets that we may not be able to realize under certain circumstances.

Read these in Item 1A · See the changes

1. For us to remain competitive, deliver on our business strategy and avoid business disruption, it is important to recruit high caliber talent, retain key management and highly-skilled employees and receive high quality service from all outsourced service providers. This includes providing market-competitive compensation and benefits and ensuring an engaged global team.
2. We have various non-U.S. collective labor arrangements, which make us subject to potential work stoppages, as well as union and works council campaigns and other labor disputes, any of which could adversely impact our business.

Read these in Item 1A · See the changes

1. If our indebtedness increases significantly or our credit ratings are downgraded, we may have difficulty obtaining short- and long-term financing on acceptable terms and conditions.reworded
2. An increase in interest rates adversely affects our business.Interest rates
3. Our current and future debt covenants may limit our flexibility.

Read these in Item 1A · See the changes

1. Our stock price is subject to significant variability.
2. We cannot guarantee that we will continue to repurchase shares of our common stock or pay dividends on our common stock or that repurchases will enhance long-term stockholder value. Changes in our levels of stock repurchases or dividends could affect our stock price and increase its variability.

Read these in Item 1A · See the changes

1. Infringing intellectual property rights of third parties or inadequately acquiring or protecting our intellectual property could harm our ability to compete or grow.
2. Unfavorable developments in legal proceedings, investigations and other legal and regulatory matters, could impact us in a materially adverse manner.
3. We are required to comply with anti-corruption and other compliance laws and regulations of the U.S. government and various international jurisdictions, and our failure to comply with these laws and regulations could have a material adverse effect on our business.
4. We are required to comply with environmental, health, and safety laws at our operations around the world. The costs of complying with these laws is significant and increasing.
5. We are subject to export and import control laws and regulations in the jurisdictions in which we do business that could subject us to liability or impair our ability to compete in these markets.

Read these in Item 1A · See the changes

1. Our pension assets and liabilities are significant and subject to market, interest and credit risk that may reduce their asset values or increase their liability values, either of which could increase our net pension liability.
2. The actuarial assumptions used in the measurement of our pension assets and liabilities affect our earnings and cash flows. Changes in accounting standards and government regulations could also affect our pension and postretirement plan expense and funding requirements.reworded
3. An impairment in the carrying value of goodwill could negatively impact our results of operations and net worth.

Read these in Item 1A · See the changes