Avon 2014 Annual Report Download - page 10

• a general economic downturn, a recession globally or in one or more of our geographic regions or markets, such as Russia, 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, pricing, data privacy or other restrictions, the adoption, interpretation and enforcement of foreign laws,
including in 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
Venezuela;
• the impact of U.S. tax regulations and changes in tax rates on the value of our deferred tax assets, and declining earnings, including the
amount of any domestic source loss and the amount, type, jurisdiction and timing of any foreign source income (which may be impacted
by foreign currency movements), on our ability to realize foreign tax credits in the U.S.;
• competitive uncertainties in our markets, including competition from companies in the consumer packaged goods industry, some of which
are larger than we are and have greater resources;
• the impact of the adverse effect of volatile 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 attract and retain key personnel;
• 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, and any cyber security breaches, including any security
breach of our systems or those of a third-party provider that results in the theft, transfer or unauthorized disclosure of Representative,
customer, employee or Company information or compliance with information security and privacy laws and regulations in the event of
such an incident which could disrupt business operations, result in the loss of critical and confidential information, and adversely impact
our reputation and results of operations, and related costs to address such malicious intentional acts and to implement adequate
preventative measures against cyber security breaches;
• the risk of product or ingredient shortages resulting from our concentration of sourcing in fewer suppliers;
• any changes to our credit ratings and the impact of such changes on our financing costs, rates, terms, debt service obligations, access to
lending sources and working capital needs;
• the impact of our indebtedness, our access to cash and financing, and our ability to secure financing or financing at attractive rates;
• the impact of a continued decline in our business results, which includes the impact of any adverse foreign exchange movements,
significant restructuring charges and significant legal or regulatory settlements, on our ability to comply with certain covenants in our
revolving credit facility;
• the impact of possible pension funding obligations, increased pension expense and any changes in pension standards and regulations or
interpretations thereof on our cash flow and results of operations;
• our ability to successfully identify new business opportunities, strategic alliances and strategic alternatives and identify and analyze alliance
and acquisition candidates, secure financing on favorable terms and negotiate and consummate alliances and acquisitions, as well as to
successfully integrate or manage any acquired business;
• 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 litigation or with respect to the legal status of Representatives.
Additional information identifying such factors is contained in Item 1A of our 2014 Form 10-K for the year ended December 31, 2014. We
undertake no obligation to update any such forward-looking statements.