O'Reilly Auto Parts 2013 Annual Report Download - page 21

FORM 10-K
15
O’REILLY AUTO COLOR PROFESSIONAL PAINT PEOPLE®, O’REILLY AUTO PARTS®, O’REILLY AUTO PARTS
PROFESSIONAL PARTS PEOPLE®, O’REILLY AUTOMOTIVE®, O'REILLY O'REWARDS®, O’REILLY RACING®,
O'REWARDS®, PARTNERSHIP NETWORK®, PARTS CITY®, PARTS CITY AUTO COLOR PROFESSIONAL PAINT PEOPLE®,
PARTS CITY AUTO PARTS®, PARTS CITY TOOL BOX®, PARTS PAYOFF®, POWER TORQUE®, PRECISION®, QUIETECH®,
REAL WORLD TRAINING®, SERIOUS ABOUT YOUR CAR…SO ARE WE!®, SUPER START®, TOOLBOX®, ULTIMA®, CSK
PROSHOP®, FLAG®, KRAGEN AUTO PARTS®, MURRAY’S AUTO PARTS®, PRIORITY PARTS®, PROXONE®, SCHUCK’S®,
WE’RE THE PLACE WITH ALL THE PARTS®, MURRAY’S VIP PROGRAM®, PAY N $AVE®. Some of the service marks and
trademarks listed above may also have a design associated therewith. Each of the service marks and trademarks are in duration for as
long as we continue to use and seek renewal of such marks – the duration of each of these service marks and trademarks is typically
between five and ten years per renewal. We believe that our business is not otherwise dependent upon any patent, trademark, service
mark or copyright.
Solely for convenience, our service marks and trademarks may appear in this report without the ® or ™ symbol, which is not intended
to indicate that we will not assert, to the fullest extent under applicable law, our rights or the right to these service marks and trademarks.
AVAILABLE INFORMATION
Our Internet address is www.oreillyauto.com. Interested readers can access, free of charge, our annual reports on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or
15(d) of the Securities Exchange Act of 1934, as amended, through the Securities and Exchange Commission website at www.sec.gov
and searching with our ticker symbol “ORLY”. Such reports are generally available the day they are filed. Upon request, we will furnish
interested readers a paper copy of such reports free of charge by contacting Mark Merz, Director of External Reporting and Investor
Relations, at 233 South Patterson Avenue, Springfield, Missouri, 65802.
Item 1A. Risk Factors
Our future performance is subject to a variety of risks and uncertainties. Although the risks described below are the risks that we believe
are material, there may also be risks of which we are currently unaware, or that we currently regard as immaterial based upon the
information available to us that later may prove to be material. Interested parties should be aware that the occurrence of the events
described in these risk factors, elsewhere in this Form 10-K and in our other filings with the Securities and Exchange Commission could
have a material adverse effect on our business, operating results and financial condition. Actual results, therefore, may materially differ
from anticipated results described in our forward-looking statements.
Deteriorating economic conditions may adversely impact demand for our products, reduce access to credit and cause our customers
and others with which we do business to suffer financial hardship, all of which could adversely impact our business, results of
operations, financial condition and cash flows.
In recent years, worldwide economic conditions have deteriorated significantly in many countries and regions, including the United
States, and such conditions may worsen in the foreseeable future. Although demand for many of our products is primarily non-discretionary
in nature and tend to be purchased by consumers out of necessity, rather than on an impulse basis, our sales are impacted by constraints
on the economic health of our customers. The economic health of our customers is affected by many factors, including, among others,
general business conditions, interest rates, inflation, consumer debt levels, the availability of consumer credit, currency exchange rates,
taxation, fuel prices, unemployment levels and other matters that influence consumer confidence and spending. Many of these factors
are outside of our control. Our customers’ purchases, including purchases of our products, could decline during periods when income is
lower, when prices increase in response to rising costs, or in periods of actual or perceived unfavorable economic conditions. If any of
these events occur, or if unfavorable economic conditions challenge the consumer environment, our business, results of operations,
financial condition and cash flows could be adversely affected.
Overall demand for products sold in the automotive aftermarket is dependent upon many factors including the total number of vehicle
miles driven in the U.S., the total number of registered vehicles in the U.S., the age and quality of these registered vehicles and the level
of unemployment in the U.S. Adverse changes in these factors could lead to a decreased level of demand for our products, which could
negatively impact our business, results of operations, financial condition and cash flows.
In addition, economic conditions, including decreased access to credit, may result in financial difficulties leading to restructurings,
bankruptcies, liquidations and other unfavorable events for our customers, suppliers, logistics and other service providers and financial
institutions which are counterparties to our credit facilities. Also, the ability of these third parties to overcome these difficulties may
increase. If third parties, on whom we rely for merchandise, are unable to overcome difficulties resulting from the deterioration in
economic conditions and provide us with the merchandise we need, or if counterparties to our credit facilities do not perform their
obligations, our business, results of operations, financial condition and cash flows could be adversely affected.