LensCrafters 2015 Annual Report Download - page 22

Management Report as of December 31, 2015 Page 18 of 35
1 exposure to local economic and political conditions;
1 export and import restrictions;
1 currency exchange rate fluctuations and currency controls;
1 cash repatriation restrictions;
1 application of the Foreign Corrupt Practices Act and similar laws;
1 difficulty in enforcing intellectual property and contract rights;
1 disruptions of capital and trading markets;
1 accounts receivable collection and longer payment cycles;
1 potential hostilities and changes in diplomatic and trade relationships;
1 legal or regulatory requirements;
1 withholding and other taxes on remittances and other payments by subsidiaries;
1 local antitrust and other market abuse provisions;
1 investment restrictions or requirements; and
1 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.
c) If vision correction alternatives to prescription eyeglasses become more widely available, or consumer
preferences for such alternatives increase, our profitability could suffer through a reduction of sales of our
prescription eyewear products, including lenses and accessories.
Our business could be negatively impacted by the availability and acceptance of vision correction alternatives to
prescription eyeglasses, such as contact lenses and refractive optical surgery. Increased use of vision correction alternatives
could result in decreased use of our prescription eyewear products, including a reduction of sales of lenses and accessories
sold in our retail outlets, which could have a material adverse impact on our business, results of operations, financial
condition and prospects.
d) Unforeseen or catastrophic losses not covered by insurance could materially adversely affect our results of
operations and financial condition.
For certain risks, we do not maintain insurance coverage because of cost and/or availability. Because we retain some portion
of our insurable risks, and in some cases self-insure completely, unforeseen or catastrophic losses in excess of insured limits
could materially adversely affect our results of operations and financial condition.
Risks Relating to Our Business and Operations
e) If we are unable to successfully introduce new products and develop and defend our brands, our future sales
and operating performance may suffer.