Rayovac 2015 Annual Report Download - page 44

Our IT systems have been, and will likely continue to be, subject to computer viruses or other malicious codes,
unauthorized access attempts, phishing and other cyber-attacks. We continue to assess potential threats and make
investments seeking to address these threats, including monitoring of networks and systems and upgrading skills,
employee training and security policies for the Company and its third-party providers. However, because the
techniques used in these attacks change frequently and may be difficult to detect for periods of time, we may face
difficulties in anticipating and implementing adequate preventative measures. To date, we have seen no material
impact on our business or operations from these attacks; however, we cannot guarantee that our security efforts will
prevent breaches or breakdowns to our or our third-party providers’ databases or systems. If the IT systems,
networks or service providers we rely upon fail to function properly, or if we or one of our third-party providers
suffer a loss, significant unavailability of or disclosure of our business or stakeholder information, and our business
continuity plans do not effectively address these failures on a timely basis, we may be exposed to reputational,
competitive and business harm as well as litigation and regulatory action. The costs and operational consequences
of responding to breaches and implementing remediation measures could be significant.
Our actual or perceived failure to adequately protect personal data could adversely affect our business,
financial condition and results of operations.
A variety of state, national, foreign, and international laws and regulations apply to the collection, use,
retention, protection, disclosure, transfer, and other processing of personal data. These privacy- and data
protection-related laws and regulations are evolving, with new or modified laws and regulations proposed and
implemented frequently and existing laws and regulations subject to new or different interpretations. Compliance
with these laws and regulations can be costly and can delay or impede the development of new products.
We historically have relied upon adherence to the U.S. Department of Commerce’s Safe Harbor Privacy
Principles and compliance with the U.S.-EU Safe Harbor Framework agreed to by the U.S. Department of
Commerce and the EU. The U.S.-EU Safe Harbor Framework, which established means for legitimizing the
transfer of personal data by U.S. companies from the European Economic Area, or EEA, to the U.S., recently
was invalidated by a decision of the European Court of Justice, or the ECJ. In light of the ECJ’s decision, we are
reviewing our business practices and may find it necessary or desirable to make changes to our personal data
handling to cause our transfer and receipt of EEA residents’ personal data to be legitimized under applicable
European law. Our actual or alleged failure to comply with applicable laws and regulations, or to protect personal
data, could result in enforcement actions and significant penalties against us, which could result in negative
publicity, increase our operating costs, subject us to claims or other remedies and have a material adverse effect
on our business, financial condition, and results of operations.
Public perceptions that some of the products we produce and market are not safe could adversely affect us.
On occasion, customers have alleged that some products failed to perform up to expectations or have caused
damage or injury to individuals or property. Public perception that any of our products are not safe, whether
justified or not, could impair our reputation, damage our brand names and have a material adverse effect on our
business, financial condition and results of operations. In addition, we rely on certain third party trademarks,
brand names and logos over which we do not have exclusive use of. Public perception that any such third party
trademarks, band names and logos used by us are not safe, whether justified or not, could have a material adverse
effect on our business, financial condition and results of operations.
If we are unable to negotiate satisfactory terms to continue existing or enter into additional collective
bargaining agreements, we may experience an increased risk of labor disruptions and our results of
operations and financial condition may suffer.
Approximately 16% of our total labor force is covered by collective bargaining agreements. There are
4 collective bargaining agreements that will expire during our fiscal year ending September 30, 2016, which
cover approximately 60% of the labor force under collective bargaining agreements, or approximately 10% of
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