Titan International(US:TWI)2024-02-29 13:57Ownership and Operations - The Company owns 64.3% of Voltyre-Prom, representing approximately 7% of consolidated assets as of December 31, 2023[90]. - Russian operations account for approximately 6% of consolidated global sales for the years ended December 31, 2023, and 2022[90]. - The military conflict between Russia and Ukraine has not significantly impacted global operations, but the Company continues to monitor potential effects[90]. Compliance and Regulatory Risks - The Company is subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, which could result in sanctions or liabilities if violated[93]. - The Company has implemented training programs to ensure compliance with sanctions and trade restrictions related to the Russia-Ukraine conflict[89]. - The Company is subject to foreign currency translation risk, which may adversely impact financial condition due to fluctuations in exchange rates[100]. - The Company may incur additional tax expenses or exposure due to changes in income distribution among jurisdictions and tax laws[103]. - The OECD's global corporate minimum tax rate of 15% is set to be effective as of January 2024, which the Company is assessing for potential impacts[104]. Environmental and Economic Risks - The Company faces risks associated with climate change regulations that may increase costs or disrupt operations[95]. - The Company is affected by global and regional economic conditions, with demand for products being cyclical and potentially reduced during economic downturns[105]. - The Company faces risks from natural disasters and sabotage, which could lead to uninsured losses and damage to operational capacity[106]. Strategic and Financial Considerations - Future acquisitions or divestitures may require significant resources and could result in substantial costs or liabilities, impacting managerial focus[107]. - International acquisitions may involve additional complexities and risks related to compliance with foreign laws and regulations[108]. - The Company may finance future acquisitions through cash from operations, additional indebtedness, or issuing equity securities, which could impair business operations[109]. - Increased indebtedness may reduce liquidity and access to financing markets, impacting cash flow requirements[110]. Technology and Operational Risks - The Company relies on information technology systems for various business processes, and disruptions could adversely affect operations and financial conditions[98].