Avon 2015 Annual Report Download - page 14

whether and when the Company will be permitted to undertake self-reporting, the Company’s compliance with the deferred prosecution
agreement and whether and when the charges against the Company are dismissed with prejudice;
• the effect of political, legal, tax, including changes in tax rates, and other regulatory risks imposed on us abroad and in the U.S., 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;
• 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 and
terms and conditions;
• 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 settlements or judgments, on our ability to comply with certain covenants in our
revolving credit facility;
• the impact of the transfer of certain pension obligations in connection with the Separation and 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
candidates, secure financing on favorable terms and negotiate and consummate alliances;
• 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, including in connection with the Separation;
• our ability to pay dividends on or mandatorily redeem the Series C Preferred Stock (as defined herein) issued in connection with the
Separation; 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 2015 Form 10-K for the year ended December 31, 2015, and
other reports and documents we file with the SEC. We undertake no obligation to update any such forward-looking statements.
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