Estee Lauder 2010 Annual Report Download - page 108

THE EST{E LAUDER COMPANIES INC. 107
(4) destocking and tighter working capital management
by retailers;
(5) the success, or changes in timing or scope, of new
product launches and the success, or changes in the
timing or the scope, of advertising, sampling and mer-
chandising programs;
(6) shifts in the preferences of consumers as to where
and how they shop for the types of products and services
we sell;
(7) social, political and economic risks to our foreign or
domestic manufacturing, distribution and retail opera-
tions, including changes in foreign investment and trade
policies and regulations of the host countries and of the
United States;
(8) changes in the laws, regulations and policies (includ-
ing the interpretations and enforcement thereof) that
affect, or will affect, our business, including those relating
to our products, changes in accounting standards, tax
laws and regulations, environmental or climate change
laws, regulations or accords, trade rules and customs
regulations, and the outcome and expense of legal or
regulatory proceedings, and any action we may take as
a result;
(9) foreign currency fluctuations affecting our results
of operations and the value of our foreign assets, the rela-
tive prices at which we and our foreign competitors sell
products in the same markets and our operating and
manufacturing costs outside of the United States;
(10) changes in global or local conditions, including those
due to the volatility in the global credit and equity mar-
kets, natural or man-made disasters, real or perceived
epidemics, or energy costs, that could affect consumer
purchasing, the willingness or ability of consumers to
travel and/or purchase our products while traveling, the
financial strength of our customers, suppliers or other
contract counterparties, our operations, the cost and
availability of capital which we may need for new equip-
ment, facilities or acquisitions, the returns that we are able
to generate on our pension assets and the resulting impact
on funding obligations, the cost and availability of raw
materials and the assumptions underlying our critical
accounting estimates;
(11) shipment delays, depletion of inventory and increased
production costs resulting from disruptions of operations
at any of the facilities that manufacture nearly all of our
supply of a particular type of product (i.e., focus factories)
or at our distribution or inventory centers, including
disruptions that may be caused by the implementation of
SAP as part of our Strategic Modernization Initiative or by
restructurings;
(12) real estate rates and availability, which may affect our
ability to increase or maintain the number of retail
locations at which we sell our products and the costs
associated with our other facilities;
(13) changes in product mix to products which are less
profitable;
(14) our ability to acquire, develop or implement new
information and distribution technologies and initiatives
on a timely basis and within our cost estimates;
(15) our ability to capitalize on opportunities for improved
efficiency, such as publicly-announced strategies and
restructuring and cost-savings initiatives, and to integrate
acquired businesses and realize value therefrom;
(16) consequences attributable to the events that are cur-
rently taking place in the Middle East, including terrorist
attacks, retaliation and the threat of further attacks or
retaliation;
(17) the timing and impact of acquisitions and divesti-
tures, which depend on willing sellers and buyers,
respectively; and
(18) additional factors as described in our filings with the
Securities and Exchange Commission, including the
Annual Report on Form 10-K for the fiscal year ended
June 30, 2010.
We assume no responsibility to update forward-looking
statements made herein or otherwise.