Dollar General 2005 Annual Report Download - page 19

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15
FORWARD-LOOKING STATEMENTS/RISK FACTORS
which include, for instance, consumer, employment, tort
and other litigation. Certain of these lawsuits, if decided
adversely to the Company or settled by the Company, may
result in liability material to the Company’s financial state-
ments as a whole or may negatively impact the Company’s
operating results if changes to the operation of the busi-
ness are required. Please see Note 7 to the Consolidated
Financial Statements included in this document for further
details regarding certain of these pending matters.
The Company may be unable to rely on liability indemni-
ties given by foreign vendors which could adversely affect its
financial statements as a whole. The Company imports
approximately 13% of its merchandise globally. Sources of
supply may prove to be unreliable, or the quality of the
globally sourced products may vary from the Company’s
expectations. The Company’s ability to obtain indemnifi-
cation from the manufacturers of these products may be
hindered by the manufacturers’ lack of understanding of
U.S. product liability laws, which may make it more likely
that the Company may have to respond to claims or com-
plaints from its customers as if the Company were the
manufacturer of the products. Any of these circumstances
could have a material adverse effect on the Company’s
business and its financial statements as a whole.
The Company is subject to interest rate risk which could
impact profitability. The Company is subject to market risk
from exposure to changes in interest rates based on its
financing, investing and cash management activities.
Changes in interest rates could have an unanticipated
negative impact on the Company’s profitability.