ADT 2014 Annual Report Download - page 91

FORM 10-K
If we are unable to hire and retain key personnel, including an effective sales force, our ability to manage
our business could be adversely affected.
Our success will depend in part upon the continued services of our management team and sales
representatives. Our ability to retain and hire new key personnel for management positions and effective sales
representatives could be impacted adversely by the competitive environment for management and sales talent.
The loss, incapacity or unavailability for any reason of key members of our management team and the inability
or delay in hiring new key employees including sales force personnel could adversely affect our ability to
manage our business and our future operational and financial results.
Adverse developments in our relationship with our employees could adversely affect our business, results
of operations and financial condition.
As of September 26, 2014, approximately 2,100 of our employees at various sites, or approximately 12% of
our total workforce, were represented by unions and covered by collective bargaining agreements. Our
relationships with these unions have generally been good. We are currently party to approximately 32 collective
bargaining agreements in the United States and Canada. Almost one-third of these agreements are up for renewal
in any given year. We cannot predict the outcome of negotiations of the collective bargaining agreements
covering our employees. If we are unable to reach new agreements or renew existing agreements, employees
subject to collective bargaining agreements may engage in strikes, work slowdowns or other labor actions, which
could materially disrupt our ability to provide services. New labor agreements or the renewal of existing
agreements may impose significant new costs on us, which could adversely affect our financial condition and
results of operations in the future.
We may be subject to liability for obligations of The Brink’s Company under the Coal Act.
On May 14, 2010, we acquired Broadview Security, a business formerly owned by The Brink’s Company.
Under the Coal Industry Retiree Health Benefit Act of 1992, as amended (the “Coal Act”), The Brink’s Company
and its majority-owned subsidiaries as of July 20, 1992 (including certain legal entities acquired in the
Broadview Security acquisition) are jointly and severally liable with certain of The Brink’s Company’s other
current and former subsidiaries for health care coverage obligations provided for by the Coal Act. A Voluntary
Employees’ Beneficiary Associate (“VEBA”) trust has been established by The Brink’s Company to pay for
these liabilities, although the trust may have insufficient funds to satisfy all future obligations. At the time of the
Broadview Spin-Off, Broadview Security entered into an agreement pursuant to which The Brink’s Company
agreed to indemnify it for any and all liabilities and expenses related to The Brink’s Company’s former coal
operations, including any health care coverage obligations. The Brink’s Company has agreed that this
indemnification survives our acquisition of Broadview Security. We have evaluated our potential liability under
the Coal Act as a contingency in light of all known facts, including the funding of the VEBA and indemnification
provided by The Brink’s Company. We have concluded that no accrual is necessary due to the existence of the
indemnification and our belief that The Brink’s Company and VEBA will be able to satisfy all future obligations
under the Coal Act. However, if The Brink’s Company and the VEBA are unable to satisfy all such obligations,
we could be held liable, which could have a material adverse effect on our financial condition, results of
operations or cash flows.
Risks Relating to Our Liquidity
Disruptions in the financial markets or changes in our credit ratings could adversely affect us by
reducing availability of credit or access to financing on favorable terms or at all and could adversely
affect our suppliers by increasing funding costs or reducing availability of credit.
In the normal course of our business, we may access the capital markets for general corporate purposes,
which may include repayment of indebtedness, acquisitions, additions to working capital, repurchase of common
stock, capital expenditures and investments in our business. We rely on the capital markets, particularly for
offerings of debt securities to meet our financial commitments and liquidity needs. Although we expect to have
25