GNC 2012 Annual Report Download - page 23

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Table of Contents
Environmental Compliance
In March 2008, the South Carolina Department of Health and Environmental Control ("DHEC") requested that we investigate contamination associated
with historical activities at one of our South Carolina facilities. This investigation has identified chlorinated solvent impacts in soils and groundwater that
extend offsite from our facility. We are awaiting DHEC approval of the scope of additional investigations in order to understand the extent of these impacts
and develop appropriate remedial measures for DHEC approval. At this state of the investigation, however, it is not possible to estimate the timing and extent
of any remedial action that may be required, the ultimate cost of remediation, or the amount of our potential liability.
In addition to the foregoing, we are subject to numerous federal, state, local and foreign environmental and health and safety laws and regulations
governing its operations, including the handling, transportation and disposal of our non-hazardous and hazardous substances and wastes, as well as emissions
and discharges from its operations into the environment, including discharges to air, surface water and groundwater. Failure to comply with such laws and
regulations could result in costs for remedial actions, penalties or the imposition of other liabilities. New laws, changes in existing laws or the interpretation
thereof, or the development of new facts or changes in their processes could also cause us to incur additional capital and operating expenditures to maintain
compliance with environmental laws and regulations and environmental permits. We are also subject to laws and regulations that impose liability and cleanup
responsibility for releases of hazardous substances into the environment without regard to fault or knowledge about the condition or action causing the
liability. Under certain of these laws and regulations, such liabilities can be imposed for cleanup of previously owned or operated properties, or for properties
to which substances or wastes that were sent in connection with current or former operations at its facilities. The presence of contamination from such
substances or wastes could also adversely affect our ability to sell or lease our properties, or to use them as collateral for financing. From time to time, we
have incurred costs and obligations for correcting environmental and health and safety noncompliance matters and for remediation at or relating to certain of
our properties or properties at which our waste has been disposed. However, compliance with the provisions of national, state and local environmental laws
and regulations has not had a material effect upon our capital expenditures, earnings, financial position, liquidity or competitive position. We believe we are
currently in compliance with our environmental obligations pursuant to environmental and health and safety laws and regulations in all material respects, and
that any liabilities for noncompliance will not have a material adverse effect on our business or financial performance.
Item 1A. RISK FACTORS.
The following risk factors could cause our financial performance to differ significantly from the goals, plans, objectives, intentions and expectations
expressed in this Annual Report. If any of the following risks and uncertainties actually occur, our business, financial condition, results of operations or cash
flows could be materially and adversely affected.
Risks Relating to Our Business and Industry
We may not effectively manage our growth, which could materially harm our business.
We expect that our business will continue to grow, which may place a significant strain on our management, personnel, systems and resources. We must
continue to improve our operational and financial systems and managerial controls and procedures, and we will need to continue to expand, train and manage
our technology and workforce. We must also maintain close coordination among our technology, compliance, accounting, finance, marketing and sales
organizations. We cannot assure you that we will manage our growth effectively. If we fail to do so, our business could be materially harmed.
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