Chili's 2009 Annual Report Download - page 21

portion of our goodwill and record related non-cash impairment charges, our financial position and results
of operations would be adversely affected.
Changes to estimates related to our property and equipment, or operating results that are lower than
our current estimates at certain restaurant locations, may cause us to incur impairment charges on
certain long-lived assets.
We make certain estimates and projections with regards to individual restaurant operations, as well as
our overall performance in connection with our impairment analyses for long-lived assets in accordance
with Statement of Financial Accounting Standards No. 144, ‘‘Accounting for the Impairment or Disposal of
Long-Lived Assets.’’ An impairment charge is required when the carrying value of the asset exceeds the
estimated fair value or undiscounted future cash flows of the asset. The projection of future cash flows
used in this analysis requires the use of judgment and a number of estimates and projections of future
operating results. If actual results differ from our estimates, additional charges for asset impairments may
be required in the future. If impairment charges are significant, our results of operations could be
adversely affected.
Failure to protect the integrity and security of individually identifiable data of our guests and
teammates could expose us to litigation and damage our reputation.
We receive and maintain certain personal information about our guests and teammates. The use of
this information by us is regulated at the federal and state levels, as well as by certain third party contracts.
If our security and information systems are compromised or our business associates fail to comply with
these laws and regulations and this information is obtained by unauthorized persons or used
inappropriately, it could adversely affect our reputation, as well as operations, results of operations and
financial condition, and could result in litigation against us or the imposition of penalties. As privacy and
information security laws and regulations change, we may incur additional costs to ensure it remains in
compliance.
Identification of material weakness in internal control may adversely affect our financial results.
We are subject to the ongoing internal control provisions of Section 404 of the Sarbanes-Oxley Act of
2002. Those provisions provide for the identification of material weaknesses in internal control. If such a
material weakness is identified, it could indicate a lack of adequate controls to generate accurate financial
statements. We routinely assess our internal controls, but we cannot assure you that we will be able to
timely remediate any material weaknesses that may be identified in future periods, or maintain all of the
controls necessary for continued compliance. Likewise, we cannot assure you that we will be able to retain
sufficient skilled finance and accounting team members, especially in light of the increased demand for
such individuals among publicly traded companies.
Other risk factors may adversely affect our financial performance.
Other risk factors that could cause our actual results to differ materially from those indicated in the
forward-looking statements by affecting, among many things, pricing, consumer spending and consumer
confidence, include, without limitation, changes in economic conditions and financial and credit markets
(including rising interest rates and costs for consumers and reduced disposable income); credit availability;
increased costs of food commodities; increased fuel costs and availability for our team members, customers
and suppliers; health epidemics or pandemics or the prospects of these events (such as reports on swine
flu); consumer perceptions of food safety; changes in consumer tastes and behaviors; governmental
monetary policies; changes in demographic trends; availability of employees; terrorist acts; energy
shortages and rolling blackouts; and weather (including, major hurricanes and regional winter storms) and
other acts of God.
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