BC Brunswick Corp.

Risks

• Worldwide economic conditions significantly affect our industries and businesses, and economic decline can materially impact our financial results.
• Failure to successfully implement our strategic plan and growth initiatives could have a material adverse effect on our business and financial condition.
• Successfully managing our manufacturing activity is critical to our operating and financial results.
• Changes in currency exchange rates can adversely affect our results.
• Our success depends upon the continued strength of our brands.
• Fiscal concerns and policy changes may negatively impact worldwide economic and credit conditions and adversely affect our industries, businesses, and financial condition.
• Dealer or distributor inability to secure adequate access to capital could adversely affect our sales.
• Our financial results could be adversely affected if we are unable to maintain effective distribution.
• Adverse economic, credit, and capital market conditions could have a negative impact on our financial results.
• Adverse weather conditions, climate events, or regulatory policies can have a negative effect on revenues.
• Catastrophic events, including natural and environmental disasters, could have a negative effect on our operations and financial results.
• Loss of key customers could harm our business.
• Our business and operations are dependent on the expertise of our key contributors, our successful implementation of succession plans, and our ability to attract and retain management employees and skilled labor.
• A significant portion of our revenue is derived from international sources, which creates additional uncertainty.
• An impairment in the carrying value of goodwill, trade names, and other long-lived assets could negatively affect our consolidated results of operations and net worth.
• Our business operations could be negatively impacted by an outage or breach of our information technology systems, operational technology systems, or a cybersecurity event.
• We rely on third parties for computing, storage, processing, and similar services. Any disruption of or interference with our use of these third-party services could have an adverse effect on our business, financial condition, and operating results.
• We collect, store, process, share, and use personal information, and rely on third parties that are not directly under our control to do so as well, which subjects us to legal obligations, laws and regulations related to security and privacy, and any actual or perceived failure to meet those obligations could harm our business.
• Inventory reductions by major dealers, retailers, and independent boat builders could adversely affect our financial results.
• We may be required to repurchase inventory or accounts of certain dealers.
• Our financial results may be adversely affected by our third party suppliers' increased costs or inability to meet required production levels due to tariff impacts or defects or disruption of supply of raw materials, parts, and product components.
• Higher energy and fuel costs can affect our results.
• Either inadequate intellectual property protection that could allow others to use our technologies and impair our ability to compete, or failure to successfully defend against patent infringement claims could have a material adverse effect on our financial condition and results of operations.
• We have a fixed cost base that can affect our profitability in a declining sales environment.
• An inability to identify and complete targeted acquisitions could negatively impact financial results.
• There can be no assurance that strategic divestitures or restructurings will provide business benefits.
• The completed Fitness business separation could be disruptive to the business and our operations, and there can be no assurance that it will provide all of the anticipated business benefits.
• The inability to successfully integrate acquisitions, including the Global Marine & Mobile Business of Power Products, could negatively impact financial results.
• The franchise business model of Freedom Boat Club presents risks.
• The timing and amount of our share repurchases are subject to a number of uncertainties.
• Our profitability may suffer as a result of competitive pricing and other pressures.
• Our ability to remain competitive depends on successfully introducing new products and services that meet customer expectations.
• We manufacture and sell products that create exposure to potential claims and litigation.
• Compliance with environmental, health, safety, zoning, and other laws and regulations may increase costs and reduce demand for our products.
• Changes in income tax laws or enforcement could have a material adverse impact on our financial results.
• Certain activist shareholder actions could cause us to incur expense and hinder execution of our strategy.
• Some of our operations are conducted by joint ventures that are not operated solely for our benefit.