What changed in this filing

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Item 1A. Risk Factors

2020-11-20 compared with 2019-11-22 · 20 added, 98 removed, 61 unchanged (66% of the section changed)

RISK FACTORS, (continued)

Changes in Product Demand or Pricing.

The Company's businesses have and will continue to operate in competitive markets.

Changes in product demand or pricing are affected by domestic and foreign competition and an increase in consolidated purchasing by large customers operating in both domestic and global markets.

The Memorialization businesses generally operate in markets with ample supply capacity and demand which is correlated to death rates.

The Brand Solutions businesses serve global customers

that are requiring their suppliers to be global in scope and price-competitive.

Additionally, in recent years the Company has witnessed an increase in products manufactured offshore, primarily in China, and imported into the Company's U.S.

It is expected that these trends will continue and may affect the Company's future results of operations.

Changes in the Distribution of the Company's Products or the Loss of a Large Customer.

Although the Company does not have any customer that is individually significant to consolidated sales, it does have contracts with several large customers in both the Memorialization and SGK Brand Solutions segments.

While these contracts provide important access to large purchasers of the Company's products, they can obligate the Company to sell products at contracted prices for extended periods of time.

Additionally, any significant divestiture of business properties or operations by current customers could result in a loss of business if the Company is not able to maintain the business with the subsequent owners of the businesses.

Due to the uncertainty relating to a pandemic or similar outbreak, the Company, its customers or its suppliers may be required, or believe that it is advantageous, to take precautionary measures intended to minimize the risk of a virus or disease spreading to employees, customers, and the communities in which they operate, and these measures could negatively impact the Company’s business.

Further, if the scope and severity of an outbreak, such as COVID-19, worsens and the Company’s contingency plans prove ineffective, its global operations could potentially experience disruptions, such as temporary closure of facilities or delays or suspensions in product offerings and services, which may materially and adversely affect the Company’s business, financial condition and results of operations.

Risks in Connection with Acquisitions .

22 unchanged sentences

There can be no assurance that the Company will be able to develop new products, that new products can be manufactured and marketed profitably, or that new products will successfully meet the expectations of customers.

RISK FACTORS, (continued)

Cybersecurity and Data Breaches.

In the course of business, the Company collects and stores sensitive data and proprietary business information.

The Company could be subject to service outages or breaches of security systems which may result in disruption, unauthorized access, misappropriation, or corruption of this information.

Security breaches of the Company's network or data including physical or electronic break-ins, vendor service outages, computer viruses, attacks by hackers or similar breaches can create system disruptions, shutdowns, or unauthorized disclosure of confidential information.

Although the Company is not aware of any significant incidents to date, if it is unable to prevent such security or privacy breaches, its operations could be disrupted or the Company may suffer legal claims, loss of reputation, financial loss, property damage, or regulatory penalties because of lost or misappropriated information.

Changes in Laws and Regulations Governing Data Privacy and Data Protection .

The GDPR contains numerous requirements, including more robust obligations and increased documentation requirements for data protection compliance programs by companies.

Complying with the GDPR may cause the Company to incur substantial operational costs or require the Company to change its business practices.

The Company’s measures to assess the requirements of, and to comply with, the GDPR, as well as new and existing data-related laws and regulations of other jurisdictions, could be challenged, including by authorities that regulate data-related compliance.

The Company is subject to many data privacy, data protection, and data breach notification laws, including the European Union General Data Protection Regulation (the “GDPR”), which became effective in May of 2018, and the California Consumer Privacy Act (the "CCPA"), which became effective in January 2020.

The GDPR and the CCPA contain numerous requirements, including more robust obligations and increased documentation requirements for data protection compliance programs by companies.

Complying with the GDPR and the CCPA may cause the Company to incur substantial operational costs or require the Company to change its business practices.

The Company’s measures to assess the requirements of, and to comply with, the GDPR and the CCPA, as

RISK FACTORS, (continued)

well as new and existing data-related laws and regulations of other jurisdictions, could be challenged, including by authorities that regulate data-related compliance.

The Company’s ongoing compliance measures could result in the incurrence of significant expense in facilitating and responding to regulatory investigations, and if the measures initiated by the Company are deemed to be inadequate, the Company could be subject to enforcement actions that may require operational changes, fines, penalties or damages, which could have an adverse impact on the Company’s business or results of operations.

19 unchanged sentences

There can be no assurance that any of these factors will not have a material adverse effect on the Company's business, results of operations or financial condition.

General Risk Factors:

Changes in Economic Conditions.

Generally, changes in domestic and international economic conditions affect the industries in which the Company and its customers and suppliers operate.

These changes include changes in the rate of consumption or use of the Company's products due to economic downturns, volatility in currency exchange rates, and changes in raw material prices resulting from supply and/or demand conditions.

Uncertainty about current global economic conditions poses a risk, as consumers and businesses may continue to postpone or cancel spending.

Other factors that could influence customer spending include energy costs, conditions in the credit markets, consumer confidence, global pandemics, and other factors affecting consumer spending behavior.

These and other economic factors could have an effect on demand for the Company's products and services and negatively impact the Company's financial condition and results of operations.

Cybersecurity and Data Breaches.

In the course of business, the Company collects and stores sensitive data and proprietary business information.

The Company could be subject to service outages or breaches of security systems which may result in disruption, unauthorized access, misappropriation, or corruption of this information.

RISK FACTORS, (continued)

12 unchanged sentences

Not Applicable.

PROPERTIES, (continued)

Principal properties of the Company and its majority-owned subsidiaries as of October 31, 2019 were as follows (properties are owned by the Company except as noted):

Description of Property

SGK Brand Solutions:

Antwerp, Belgium

Manufacturing

Battle Creek, MI

Operating facility

Burlington, NC

Manufacturing

Chennai, India

Operating facility

Operating facilities

Cincinnati, OH

Operating facility

Cleckheaton, England

Operating facility

Dachnow, Poland

Manufacturing

Gateshead, England

Operating facility

East Butler, PA

Manufacturing

Goslar, Germany

Manufacturing

Grenzach-Wyhlen, Germany

Manufacturing

Istanbul, Turkey

Manufacturing

Izmir, Turkey

Manufacturing

Jülich, Germany

Manufacturing

Manchester, England

Manufacturing

Minneapolis, MN

Operating facility

Mississauga, Canada

Operating facility

Mönchengladbach, Germany

Manufacturing

Mönchengladbach, Germany

Manufacturing

Munich, Germany

Manufacturing

New Berlin, WI

Manufacturing

Novgorod, Russia

Manufacturing

Nuremberg, Germany

Manufacturing

Penang, Malaysia

Operating facility

Queretaro, Mexico

Operating facility

Manufacturing

San Francisco, CA

Operating facility

Shanghai, China

Operating facility

Shenzhen, China

Operating facility

Tarnowo Podgorne, Poland

Manufacturing

Vreden, Germany

Manufacturing

Vreden, Germany

Manufacturing

Vreden, Germany

Operating facility

Wilsonville, OR

Operating facility

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1A. Risk Factors