JABIL INC (JBL) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that JABIL INC surfaced in its latest filing.

• Beginning in February 2025, the U.S. implemented tariffs on aluminum and steel derivative products, imports of certain Canadian and Mexican goods, imports of Chinese goods, universal tariffs on imports from most countries, and reciprocal tariffs on select countries, with certain countries imposing or considering retaliatory tariffs.February 2025
• In fiscal year 2023, supply chain impacted by component shortages, notably in semiconductors.2023
• Supply of palladium, neon gas, and high-grade aluminum from sub-tier suppliers is partially dependent on regions impacted by the Russia/Ukraine conflict.
• The Company sources some parts from suppliers located in Israel, and Middle East conflicts could affect supply.
• Credit Facility interest rate is subject to adjustment based on credit rating changes.
• The Company securitizes certain trade accounts receivable through a securitization program that could be negatively affected by customer financial difficulties or credit market turmoil.
• OECD and participating countries continue to work toward enactment of a 15% global minimum corporate tax rate, with many countries where the Company has tax incentives enacting OECD-based laws that could adversely impact its effective tax rate.
• The Company maintains a secured Credit Facility that could be negatively impacted by credit market turmoil.
• The Company has a commercial paper program that could be negatively impacted by credit market turmoil.
• The Company has various foreign subsidiary credit facilities and other debt facilities that could be negatively impacted by credit market turmoil.
• The Company uses forward foreign exchange contracts that could be negatively impacted by counterparty and lender risk from credit market turmoil.
• The Company manufactures, designs, supports, and stores operations in facilities in China, where it faces regulatory requirements, government approvals, evolving legal system uncertainties, and labor challenges.
• The Company is required to register with the U.S. FDA and is subject to periodic inspection for compliance with the FDA's QSR, including cGMPs, with potential enforcement actions for noncompliance.
• Within the EU, the Company must fulfill certain internationally recognized standards and undergo periodic inspections to obtain and maintain certifications, with noncompliance potentially stopping product flow.
• In China, the National Medical Products Administration regulates medical device manufacturing, requiring compliance with applicable laws.
• In Japan, the Pharmaceutical Affairs Laws require subcontractors manufacturing products for sale in Japan to register with authorities and submit to regulatory audits.
• Hurricanes in Florida, where the Company's headquarters are located, pose a risk.
• The Company relies on third-party-managed information systems that have suffered damage from various events and face cybersecurity threats such as industrial espionage, data theft, malware, phishing, and ransomware.
• Use of AI technologies may exacerbate cybersecurity risks and lead to inadvertent disclosure of confidential information through third-party AI-powered software.
• Several jurisdictions have passed or are considering imposing additional data protection restrictions.
• Product defects have occurred and may result in liability claims, regulatory enforcement, recalls, or operational halts, with heightened risks for medical devices.