Risk Factors Update Summary

• Conflict between China and Taiwan could lead to trade sanctions, impacting the semiconductor industry.
• Full Board now oversees cybersecurity process, increasing accountability and governance.
• The shortage of semiconductors has improved, no longer negatively impacting sales of products.
• Increased cybersecurity risk due to remote work conditions and sophisticated adversaries.
• Global semiconductor shortage due to U.S. export controls could impact operations significantly.
• Litigation contingency accrual increased from $11 million to $22 million, potentially impacting financials.
• Supply chain disruptions and shortages may adversely affect timely receipt of materials, impacting financial results.
• Cybersecurity breaches could lead to disruptions, unauthorized disclosures, and financial losses.
• Climate change regulations could increase compliance costs and liabilities, affecting business operations.
• Labor shortages have led to increased costs and could negatively impact operations and financial results.
• Proposed tax law reforms may impact multinational corporation earnings and transactions globally.
• A non-cash charge of $444 million for long-lived asset impairments in the Bedding Products segment.
• Increased cybersecurity protection efforts with an expected $9 million spend in 2024.
• Downgrades in credit ratings resulted in slightly higher interest costs, impacting borrowing costs.