Chili's 2015 Annual Report Download - page 22

Disruptions in the global financial markets may adversely impact the availability and cost of credit and
consumer spending patterns.
Previous disruptions to the global financial markets and continuing slow economic recovery have adversely
impacted the availability of credit already arranged and the availability and cost of credit in the future. The
disruptions in the financial markets also had an adverse effect on the U.S. and world economy, which has
negatively impacted consumer spending patterns. There can be no assurance that various U.S. and world
government present and future responses to the previous disruptions in the financial markets will restore
consumer confidence, stabilize the markets or increase liquidity or the availability of credit.
Declines in the market price of our common stock or changes in other circumstances that may indicate an
impairment of goodwill could adversely affect our financial position and results of operations.
We perform our annual goodwill impairment test in the second quarter of each fiscal year. Interim goodwill
impairment tests are also required when events or circumstances change between annual tests that would more
likely than not reduce the fair value of our reporting units below their carrying value. It is possible that a change
in circumstances such as the decline in the market price of our common stock or changes in consumer spending
levels, or in the numerous variables associated with the judgments, assumptions and estimates made in assessing
the appropriate valuation of our goodwill, could negatively impact the valuation of our brands and create the
potential for a non-cash charge to recognize impairment losses on some or all of our goodwill. If we were
required to write down a portion of our goodwill and record related non-cash impairment charges, our financial
position and results of operations would be adversely affected.
Changes to estimates related to our property and equipment, or operating results that are lower than our
current estimates at certain restaurant locations, may cause us to incur impairment charges on certain
long-lived assets.
We make certain estimates and projections with regards to individual restaurant operations, as well as our
overall performance in connection with our impairment analyses for long-lived assets. An impairment charge is
required when the carrying value of the asset exceeds the estimated fair value. The projection of future cash
flows used in this analysis requires the use of judgment and a number of estimates and projections of future
operating results. If actual results differ from our estimates, additional charges for asset impairments may be
required in the future. If impairment charges are significant, our financial position and results of operations could
be adversely affected.
Identification of material weakness in internal control over financial reporting may adversely affect our
financial results.
We are subject to the ongoing internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002.
Those provisions provide for the identification of material weaknesses in internal control over financial
reporting. If such a material weakness is identified, it could indicate a lack of adequate controls to generate
accurate financial statements. We routinely assess our internal control over financial reporting, but we cannot
assure you that we will be able to timely remediate any material weaknesses that may be identified in future
periods, or maintain all of the controls necessary for continued compliance. Likewise, we cannot assure you that
we will be able to retain sufficient skilled finance and accounting team members, especially in light of the
increased demand for such individuals among publicly traded companies.
Other risk factors may adversely affect our financial performance.
Other risk factors that could cause our actual results to differ materially from those indicated in the forward-
looking statements by affecting, among many things, pricing, consumer spending and consumer confidence,
include, without limitation, changes in economic conditions and financial and credit markets (including rising
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