LensCrafters 2013 Annual Report Download - page 24

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periods in which disposable income is lower or prices have increased in response to rising costs or in periods of actual or
perceived unfavorable economic conditions. If this occurs or if unfavorable economic conditions continue to challenge the
consumer environment, our business, results of operations, financial condition and cash flows could be materially adversely
affected.
In the event of financial turmoil affecting the banking system and financial markets, additional consolidation of the
financial services industry or significant failure of financial services institutions, there could be a tightening of the credit
markets, decreased liquidity and extreme volatility in fixed income, credit, currency, and equity markets. In addition, the
credit crisis could continue to have material adverse effects on our business, including the inability of customers of our
wholesale distribution business to obtain credit to finance purchases of our products, restructurings, bankruptcies,
liquidations and other unfavorable events for our consumers, customers, vendors, suppliers, logistics providers, other service
providers and the financial institutions that are counterparties to our credit facilities and other derivative transactions. The
likelihood that such third parties will be unable to overcome such unfavorable financial difficulties may increase. If the third
parties on which we rely for goods and services or our wholesale customers are unable to overcome financial difficulties
resulting from the deterioration of worldwide economic conditions or if the counterparties to our credit facilities or our
derivative transactions do not perform their obligations as intended, our business, results of operations, financial condition
and cash flows could be materially adversely affected.
If our business suffers due to changing local conditions, our profitability and future growth may be affected.
We currently operate worldwide and have begun to expand our operations in many countries, including certain
developing countries in Asia, South America and Africa. Therefore, we are subject to various risks inherent in conducting
business internationally, including the following:
• exposure to local economic and political conditions;
• export and import restrictions;
• currency exchange rate fluctuations and currency controls;
• cash repatriation restrictions;
• application of the Foreign Corrupt Practices Act and similar laws;
• difficulty in enforcing intellectual property and contract rights;
• disruptions of capital and trading markets;
• accounts receivable collection and longer payment cycles;
• potential hostilities and changes in diplomatic and trade relationships;
• legal or regulatory requirements;
• withholding and other taxes on remittances and other payments by subsidiaries;
• local antitrust and other market abuse provisions;
• investment restrictions or requirements; and
• local content laws requiring that certain products contain a specified minimum percentage of domestically
produced components.
The likelihood of such occurrences and their potential effect on us vary from country to country and are
unpredictable, but any such occurrence may result in the loss of sales or increased costs of doing business and may have a
material adverse effect on our business, results of operations, financial condition and prospects.