Fuller(US:FUL)2026-01-22 21:26Company Structure and Operations - As of November 30, 2024, the company reorganized its operating segments, selling the North America Flooring business and forming the Building Adhesive Solutions segment[14]. - The company has sales offices and manufacturing plants in 24 countries outside the United States, with satellite sales offices in another 9 countries as of November 29, 2025[15]. - The company employs approximately 7,100 employees in 44 countries, with about 2,500 based in the U.S.[23]. Environmental Compliance and Sustainability - The company estimates expenditures to comply with environmental regulations over the next two years to be approximately $22.6 million, including $2.6 million of capital expenditures[42]. - The company focuses on developing adhesives and sealants to support customers' sustainability programs in response to changing consumer demand[41]. - The company maintains a strong environmental, health, and safety program to ensure workplace safety and compliance with regulations[24]. Research and Development - The company invests significantly in research and development to create new adhesive technology platforms and enhance product performance[39]. Customer Relationships and Revenue - The company has cultivated strong relationships with diverse customers, with no single customer accounting for more than 10% of consolidated net revenue[20]. - Approximately 56% of net revenue was generated outside the United States in 2025, indicating significant international exposure[233]. Financial Risks and Market Conditions - The company is exposed to market risks from changes in interest rates, foreign currency rates, and prices of raw materials, which could negatively affect financial performance[230]. - Unfavorable economic conditions may adversely impact sales volumes, pricing levels, and profitability, particularly during recessionary periods[231]. - A hypothetical one percent change in cost of sales due to foreign currency rate changes would have resulted in a change in net income of approximately $9.1 million or $0.17 per diluted share[236]. - The purchase of raw materials is the largest expenditure for the company, with a hypothetical one percent change in raw material costs resulting in a change in net income of approximately $12.6 million or $0.23 per diluted share[238]. - The annual impact on interest expense of a one-percentage point interest rate change on the outstanding balance of variable rate debt would have resulted in a change in net income of approximately $6.6 million or $0.12 per diluted share[232]. Risk Management Strategies - The company aims to balance non-functional currency denominated assets to liabilities to minimize foreign exchange impacts[234]. - Strategic sourcing agreements are in place to manage raw material price changes, limiting increases to supplier feedstock costs[238]. - The company does not enter into speculative positions with regard to derivative instruments to manage foreign currency exchange rate fluctuations[235]. - The principal raw materials include resins, polymers, and synthetic rubbers, with efforts to avoid sole source supplier arrangements[237]. Competitive Factors - The company’s competitive factors include product performance, supply assurance, technical service, quality, price, and customer service[18]. - The company is subject to various privacy and data protection laws, including the EU's General Data Protection Regulation (GDPR), which may impact operations[45].