MKC McCormick & Co Inc

Risks

• Damage to our reputation or brand name, loss of brand relevance, increase in use of private label or other competitive brands by customers or consumers, or product quality or safety concerns could negatively impact our business, financial condition or results of operations.
• Customer consolidation, and competitive, economic and other pressures facing our customers, may put pressure on our operating margins and profitability.
• Our profitability may suffer as a result of competition in our markets.
• Laws and regulations could adversely affect our business.
• Our operations may be impaired as a result of disasters, business interruptions or similar events.
• We may not be able to successfully consummate and manage ongoing acquisition, joint venture and divestiture activities which could have an impact on our results.
• An impairment of the carrying value of goodwill or other indefinite-lived intangible assets could adversely affect our results.
• Our foreign and cross-border operations are subject to additional risks.
• Fluctuations in foreign currency markets may negatively impact us.
• The decision by British voters to exit the European Union may negatively impact our operations.
• Increases in interest rates or changes in our credit ratings may negatively impact us.
• Our credit ratings impact the cost and availability of future borrowings and, accordingly, our cost of capital.
• We have incurred additional indebtedness to finance the acquisition of RB Foods and may not be able to meet our debt service requirements.
• The deterioration of credit and capital markets may adversely affect our access to sources of funding.
• The uncertainty regarding the potential phase-out of LIBOR may negatively impact our operating results.
• We face risks associated with certain pension assets and obligations.
• Uncertain global economic conditions expose us to credit risks from customers and counterparties.
• Our operations and reputation may be impaired if our information technology systems fail to perform adequately or if we are the subject of a data breach or cyber-attack.
• The global nature of our business, changes in tax legislation and the resolution of tax uncertainties create volatility in our effective tax rate.
• Climate change may negatively affect our business, financial condition and results of operations.
• Our intellectual property rights, and those of our customers, could be infringed, challenged or impaired, and reduce the value of our products and brands or our business with customers.
• Litigation, legal or administrative proceedings could have an adverse impact on our business and financial condition or damage our reputation.
• Streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness may have a negative effect on employee relations.
• If we are unable to fully realize the benefits from our CCI program, our financial results could be negatively affected.
• The declaration, payment and amount of dividends is made at the discretion of our board of directors and depends on a number of factors.