Avon 2011 Annual Report Download - page 10

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• key information technology systems, process or site outages and disruptions;
• disruption in our supply chain or manufacturing and distribution operations;
• other sudden disruption in business operations beyond our control as a result of events such as acts of terrorism or war, natural disasters,
pandemic situations, large-scale power outages and similar events;
• the risk of product or ingredient shortages resulting from our concentration of sourcing in fewer suppliers;
• the quality, safety and efficacy of our products;
• the success of our research and development activities;
• our ability to attract and retain key personnel;
• competitive uncertainties in our markets, including competition from companies in the cosmetics, fragrances, skincare and toiletries
industry, some of which are larger than we are and have greater resources;
• our ability to implement our Sales Leadership program globally, to generate Representative activity, to increase the number of consumers
served per Representative and their engagement online, to enhance the Representative and consumer experience and increase
Representative productivity through field activation programs, execution of Service Model Transformation and other investments in the
direct-selling channel, and to compete with other direct-selling organizations to recruit, retain and service Representatives and to continue
to innovate the direct-selling model;
• the impact of the typically seasonal nature of our business, adverse effect of rising energy, commodity and raw material prices, changes in
market trends, purchasing habits of our consumers and changes in consumer preferences, particularly given the global nature of our
business and the conduct of our business in primarily one channel;
• our ability to protect our intellectual property rights;
• the risk of an adverse outcome in any material pending and future litigations or with respect to the legal status of Representatives;
• our ratings, our access to cash and short and long-term financing and ability to secure financing, or financing at attractive rates;
• the impact of possible pension funding obligations, increased pension expense and any changes in pension regulations or interpretations
thereof on our cash flow and results of operations; and
• the impact of changes in tax rates on the value of our deferred tax assets.
Additional information identifying such factors is contained in Item 1A of our 2011 Form 10-K for the year ended December 31, 2011. We
undertake no obligation to update any such forward-looking statements.