Avon 2012 Annual Report Download - page 9

• a general economic downturn, a recession globally or in one or more of our geographic regions, or sudden disruption in business
conditions, and the ability of our broad-based geographic portfolio to withstand an economic downturn, recession, cost inflation,
commodity cost pressures, economic or political instability, competitive or other market pressures or conditions;
• the effect of political, legal, tax and regulatory risks imposed on us in the U.S. and abroad, our operations or our Representatives,
including foreign exchange or other restrictions, adoption, interpretation and enforcement of foreign laws, including in non-U.S.
jurisdictions such as Brazil, Russia, Venezuela and Argentina, and any changes thereto, as well as reviews and investigations by
government regulators that have occurred or may occur from time to time, including, for example, local regulatory scrutiny in China;
• the impact of changes in tax rates on the value of our deferred tax assets and declining earnings on our ability to realize foreign tax credits
in the U.S.;
• 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;
• 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;
• 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;
• key information technology systems, process or site outages and disruptions;
• the risk of product or ingredient shortages resulting from our concentration of sourcing in fewer suppliers;
• 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;
• our ability to successfully identify new business opportunities and strategic alternatives and identify and analyze acquisition candidates,
secure financing on favorable terms and negotiate and consummate acquisitions, as well as to successfully integrate or manage any
acquired business;
• the challenges to our businesses, such as Silpada and China, including the effects of rising costs, macro-economic pressures, competition,
any potential strategic decisions, including the review of strategic alternatives for Silpada, and the impact of declines in expected future
cash flows and growth rates, and a change in the discount rate used to determine the fair value of expected future cash flows, which
have impacted, and may continue to impact, the estimated fair value of the recorded goodwill and intangible assets;
• disruption in our supply chain or manufacturing and distribution operations;
• the quality, safety and efficacy of our products;
• the success of our research and development activities;
• our ability to protect our intellectual property rights; and
• the risk of an adverse outcome in any material pending and future litigations or with respect to the legal status of Representatives.
Additional information identifying such factors is contained in Item 1A of our 2012 Form 10-K for the year ended December 31, 2012. We
undertake no obligation to update any such forward-looking statements.