Family Dollar 2013 Annual Report Download - page 21

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restrictive covenants in our debt agreements, as a result of one or more of the factors listed in this section, could
result in an event of default, which, if not cured or waived, could result in us having to repay our borrowings
before their due dates. If we are forced to refinance these borrowings on less favorable terms or if we were to
experience difficulty in refinancing the debt prior to maturity, our results of operations or financial condition
could be harmed. In addition, if we are in default under any of our existing or future debt facilities, we will be
unable to borrow additional amounts under those facilities to the extent that they would otherwise be available.
Our ability to obtain additional financing on favorable terms, if needed, could be adversely affected by
volatility in the capital markets.
We obtain and manage liquidity from the positive cash flow we generate from our operating activities and
our access to capital markets, including our credit facilities with a consortium of banks. There is no assurance
that our ability to obtain additional financing through the capital markets, if needed, will not be adversely
impacted by economic conditions. Tightening in the credit markets, low liquidity and volatility in the capital
markets could result in diminished availability of credit, higher cost of borrowing and lack of confidence in the
equity market, making it more difficult to obtain additional financing on terms that are favorable to us.
New accounting guidance or changes in the interpretation or application of existing accounting guidance
could adversely affect our financial performance.
New accounting guidance may require systems and other changes that could increase our operating costs
and/or change our financial statements. For example, implementing future accounting guidance related to leases,
contingencies and other areas impacted by the current convergence project between the Financial Accounting
Standards Board (“FASB”) and the International Accounting Standards Board (“IASB”) could require us to make
significant changes to our lease management system or other accounting systems and could result in changes to
our financial statements.
Unanticipated changes in the interpretation or application of existing accounting guidance could result in
material charges or restatements of our financial statements, which may further result in litigation or regulatory
actions which could have an adverse effect on our financial condition and results of operations.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None noted.
17