Avery Dennison (AVY) Risk Factor Changes

Goodwill is initially recorded at fair value and not amortized and is reviewed for impairment annually (or more frequently if impairment indicators are present).

The actuarial assumptions used in the measurement of our pension assets and liabilities affect our earnings and cash flows.

Changes in the value of our pension assets, which was approximately $733 million as of December 31, 2025, could materially adversely affect our earnings and cash flows as a result of a decline in the value of our inve…

Paying a sustainable dividend is a key part of our capital allocation strategy.

In April 2025, our Board authorized the repurchase of shares of our common stock with a fair market value of up to $750 million, in addition to the amount of shares that were then available for repurchase under our pr…

Changes in our stock price, among other things, affect our access to, or cost of financing from, capital markets, our stock-based compensation arrangements and our effective tax rate.

could result in an event of default, which, if not cured or waived, could have a material adverse effect on our business, financial condition and result of operations, including by triggering cross-defaults in other d…

Our credit facilities and the indentures governing our medium- and long-term notes contain, and any of our future indebtedness likely would contain, restrictive covenants that impose operating and financial restrictio…

After several years of raising interest rates in an effort to curb rising inflation across the globe, the U.S.

In 2025, our average variable-rate borrowings were approximately $739 million.

At December 31, 2025, we had approximately $3.73 billion of debt.

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.

In addition, the recent and ongoing geopolitical unrest and weather-related effects of climate change in numerous regions could impact the safety and productivity of our employees.

Work interruptions or stoppages at our company or our suppliers could significantly impact our ability to deliver for our customers.

Executive succession planning is critical to our long-term success.

Competition to recruit and retain critical talent was challenging in recent years.

The amount of income taxes we pay is subject to ongoing compliance requirements and audits by federal, state and foreign tax authorities.

Cybersecurity risk and ransomware attacks on companies continue to significantly increase and there can be no assurance that we have fully protected our information, that third parties to whom we have disclosed such i…

Although we have processes to administer credit granted to customers and believe our allowance for credit losses is adequate, we have in the past had to increase the allowance due to, among other things, epidemics, pa…

We continue to invest in our long-term growth and margin expansion plans, with approximately $200 million in capital expenditures, including fixed assets and information technology, in 2025.

We engage in restructuring actions from time to time to reduce our costs and increase efficiencies.

the terms of the policy.

Some of our products are sold by third-party distributors.

A significant consolidation of our customer base could negatively impact our business.

To drive our strategies to increase the proportion of our business from high-value categories, enhance our portfolio by growing our existing businesses and expanding into new areas, and accelerate market-driven innova…

We are also exposed to changes in customer order patterns, such as changes in the levels of inventory maintained by customers and the timing of customer purchases and new intelligent label program rollouts, which are…

Raw materials represent a significant portion of our costs and a critical factor in our profitability.

Approximately 40% of our net sales in 2025 originated in emerging markets.

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.

A substantial portion of our employees and assets are located outside of the U.S.

Fluctuations in foreign currency exchange rates, such as the unfavorable impacts associated with the Indian rupee and Brazilian real and favorable impacts associated with the euro in 2025, may result in a variety of n…

We are not able to predict the duration and severity of adverse economic, geopolitical, social, or labor conditions in the U.S.

In addition, business and operational disruptions or delays caused by geopolitical, social or economic instability and unrest – such as recent civil, political and economic disturbances in Syria, Yemen, Iran, Turkey,…

We have operations in more than 50 countries and our domestic and international operations are strongly influenced by matters beyond our control, including changes in economic, geopolitical, social and labor condition…

Additionally, the U.S.

Increased raw material costs, such as for fuel and electricity, and compliance-related costs could also impact customer demand for our products.

confidence and market share if we are unable to continue reducing our GHG emissions at levels satisfactory to our stakeholders.

The scientific consensus is that emissions of greenhouse gases (“GHG”) are altering our atmosphere in ways that are adversely affecting global climate.

Continued growth in sustainability-focused regulation presents an increasing risk to our business.

Tensions remain in trade relations between the U.S.

Claims for losses or injuries purportedly caused by some of our products arise in the ordinary course of our business.

Concern regarding climate change has also led and is likely to continue leading to increasing demands by legislators and regulators, customers, consumers, investors, employees and non-governmental organizations for co…

their climate-related risks, we have preliminarily aligned our reporting with Financial Stability Board’s Task Force on Climate-related Financial Disclosures requirements.

The scientific consensus is that emissions of greenhouse gases (“GHG”) are altering our atmosphere in ways that are adversely affecting global climate.

Changes in sustainability-focused regulation present a risk to our business.

Trade-related uncertainty remains elevated between the U.S.