−Removed: Risks Related to the Company’s Business
−Removed: Changes in general economic conditions and other factors affecting consumer spending could adversely affect the Company’s sales, costs, operating results or financial position.
−Removed: The Company’s results of operations depend on factors affecting consumer disposable income and spending patterns.
−Removed: These factors include general economic conditions, employment rates, business conditions, interest rates and tax policy in each of the markets and regions in which the Company or its third-party distributors and licensees operates.
−Removed: Customers may defer or cancel purchases of the Company’s products due to uncertainty about global, regional or local economic conditions, and how such conditions may impact them.
−Removed: Disposable income and consumer spending may decline due to recessionary economic cycles, high interest rates on consumer or business borrowings, restricted credit availability, inflation, high levels of unemployment or consumer debt, high tax rates, declines in consumer confidence or other factors.
−Removed: A decline in disposable income and consumer spending could adversely affect demand for the Company’s products, which could adversely affect the Company's results of operations.
−Removed: The Company operates in competitive industries and markets.
−Removed: The Company competes with a large number of wholesalers, and retailers of footwear and apparel, and consumer-direct footwear and apparel companies.
−Removed: Many of the Company’s competitors have greater resources and larger customer and consumer bases, are able, or elect, to sell their products at lower prices, or have greater financial, technical or marketing resources than the Company, particularly its competitors in the apparel and consumer-direct businesses.
−Removed: The Company’s competitors may own more recognized brands;
−Removed: implement more effective marketing campaigns;
−Removed: adopt more aggressive pricing policies;
−Removed: make more attractive offers to potential employees, distribution partners and manufacturers;
−Removed: or respond more quickly to changes in consumer preferences.
−Removed: The Company’s continued ability to sell its products at competitive prices and to meet shifts in consumer preferences quickly will affect its future sales.
−Removed: If the Company is unable to respond effectively to competitive pressures, its results of operations and financial position may be adversely affected.
+Added: Business and Operational Risks
+Added: The COVID-19 pandemic has had a material adverse impact on the Company’s operations and financial results, and such impact could worsen and last for an unknown period of time.
+Added: The COVID-19 pandemic has negatively affected the global economy, disrupted consumer spending and global supply chains, and significantly increased the volatility and disruption of financial markets both globally and in the United States.
+Added: These conditions have led to a decline in discretionary spending by consumers which has had a negative effect on the Company’s financial condition and results of operations.
+Added: The extent to which the COVID-19 pandemic impacts the Company’s business, operations and financial results, including the duration and magnitude of such effects, will depend on numerous evolving factors outside of the Company's control that the Company cannot currently fully predict or assess, such as;
+Added: the duration and scope of the pandemic and effectiveness of containment efforts;
+Added: the negative impact on global and regional economies and economic activity, including the duration and magnitude of its impact on unemployment rates, consumer discretionary spending and levels of consumer confidence;
+Added: and actions governments, businesses and individuals may take in response to the pandemic.
+Added: The timing of recovery after the pandemic is also uncertain.
+Added: The Company’s business has been and could continue to be materially adversely affected by several factors related to the COVID-19 pandemic, including, but not limited to:
+Added: • The inability of employees, suppliers and other business providers to carry out tasks at ordinary levels of performance as a result of measures taken to limit the spread of COVID-19, such as those promulgated by governmental authorities.
+Added: • Further outbreaks could require the closure of the Company's own and wholesale customers recently reopened retail stores.
+Added: There can be no assurance whether recently reopened stores will remain open.
+Added: • Decreased retail traffic resulting from social distancing measures.
+Added: • Negative effects on consumer spending due to general macroeconomic conditions, decreased disposable income and increased unemployment.
+Added: • Wholesale and distributor customer order cancellations due to lower consumer demand.
+Added: • Decline in the performance or financial condition of the Company’s major wholesale customers as a result of retail store closures, bankruptcy or liquidation.
+Added: • Disruption to the operations of the Company’s distribution centers and its third-party manufacturers because of facility closures, reductions in operating hours, labor or material shortages, travel limitations or mass transit disruptions.
+Added: • Additional expenses related to mitigating the pandemic’s impact on regular operations.
+Added: • Increased cyber security risk due to the increase in the number of employees working remotely.
+Added: The disruption to the global economy and the Company's business may lead to triggering events indicating that the carrying value of certain assets, such as long-lived assets, intangibles and goodwill, may not be recoverable.
+Added: Any required non-cash impairment charges will adversely affect the Company's results of operations.
+Added: The COVID-19 pandemic may also affect the Company's operating and financial results in a manner that is not presently known to the Company or that the Company does not currently believe presents significant risks to its operations.
The Company’s operating results could be adversely affected if it is unable to maintain its brands’ positive images with consumers or anticipate, understand and respond to changing footwear and apparel trends and consumer preferences.
Consumer preferences and, as a result, the popularity of particular designs and categories of footwear and apparel, generally change over time.
−Removed: The Company’s success depends in part on its ability to maintain its brands’ positive images, and the ability to anticipate, understand and respond to changing footwear and apparel trends and consumer preferences in a timely manner.
+Added: The Company’s success depends in part on its ability to maintain its brands’ positive images, and the ability
+Added: to anticipate, understand and respond to changing footwear and apparel trends and consumer preferences in a timely manner.
The Company’s efforts to maintain and improve its competitive position by monitoring and timely and appropriately responding to changes in consumer preferences, increasing brand awareness and enhancing the style, comfort and perceived value of its products may not be successful.
−Removed: If the Company is unable to maintain or enhance the images of its brands or if it is unable to timely and appropriately respond to changing consumer preferences and evolving footwear and apparel trends, consumers may consider its brands’ images
−Removed: to be outdated, associate its brands with styles that are no longer popular and decrease demand for its products.
+Added: If the Company is unable to maintain or enhance the images of its brands or if it is unable to timely and appropriately respond to changing consumer preferences and evolving footwear and apparel trends, consumers may consider its brands’ images to be outdated and associate its brands with styles that are no longer popular, which would decrease demand for its products.
Such failures could result in reduced sales, excess inventory, trade name impairments, lower gross margin and other adverse impacts on the Company’s operating results.
−Removed: The Company’s operating results depend on effectively managing inventory levels.
−Removed: The Company’s ability to effectively manage its inventories and accurately forecast demand are important factors in its operations.
−Removed: Inventory shortages can impede the Company’s ability to meet demand, adversely affect the timing of shipments to customers and, consequently, adversely affect business relationships with retail customers, diminish brand loyalty and decrease sales.
−Removed: Conversely, excess inventory can result in lower gross margins if the Company lowers prices in order to liquidate it.
−Removed: In addition, inventory may become obsolete as a result of changes in consumer preferences over time.
−Removed: The Company’s business, results of operations and financial position could be adversely affected if it is unable to effectively manage its inventory.
−Removed: Increases or changes in duties, quotas, tariffs and other trade restrictions could adversely impact the Company’s sales and profitability.
−Removed: All of the Company’s products manufactured overseas and imported into the U.S., Canada, the European Union and other countries are subject to customs duties collected by customs authorities.
−Removed: The customs information submitted by the Company is routinely subject to review by customs authorities and any such review might result in the assessment of additional duties or penalties.
−Removed: Additional U.S.
−Removed: or foreign customs duties, quotas, tariffs, anti-dumping duties, safeguard measures, cargo restrictions, the loss of most favored nation trading status or other trade restrictions, including those due to changes in trade relations between the U.S.
−Removed: and other countries, may be imposed on the importation of the Company’s products in the future.
−Removed: The imposition of such costs or restrictions in countries where the Company operates, as well as in countries where its third-party distributors and licensees operate, could result in increases in the cost of the Company’s products generally and adversely affect its sales and profitability.
−Removed: Foreign currency exchange rate fluctuations could adversely impact the Company’s business.
−Removed: Foreign currency exchange rate fluctuations affect the Company’s revenue and profitability.
−Removed: Changes in foreign currency exchange rates may impact the Company’s financial results positively or negatively in any given period, which may make it difficult to compare the Company’s operating results from different periods.
−Removed: Foreign currency exchange rate fluctuations may also adversely impact third parties that manufacture the Company’s products by increasing their costs of production and raw materials and making such costs more difficult to finance, thereby raising prices for the Company, its distributors and its licensees.
−Removed: The Company’s hedging strategy may not successfully mitigate the Company’s foreign currency exchange rate risk.
−Removed: For a more detailed discussion of the risks related to foreign currency exchange rate fluctuations, see Item 7A:
−Removed: “Quantitative and Qualitative Disclosures About Market Risk.”
−Removed: In addition, our foreign subsidiaries purchase products in U.S.
−Removed: dollars and the cost of those products will vary depending on the applicable foreign currency exchange rate, which will impact the price charged to customers.
−Removed: The Company’s foreign distributors also purchase products in U.S.
−Removed: dollars and sell in local currencies, which impacts the price to foreign consumers and in turn, impacts the amount of royalties paid to the Company in U.S.
−Removed: dollar strengthens relative to foreign currencies, the Company's revenues and profits denominated in foreign currencies are reduced when converted into U.S.
−Removed: dollars and the Company's margins may be negatively impacted by the increase in product costs.
−Removed: The Company may seek to mitigate the negative impacts of foreign currency exchange rate fluctuations through price increases and further actions to reduce costs, but the Company may not be able to fully offset the impact, if at all.
−Removed: The Company’s success depends, in part, on its ability to manage these various foreign currency impacts as changes in the value of the U.S.
−Removed: dollar relative to other currencies could have an adverse effect on the Company’s business and results of operations.
Significant capacity constraints, production disruptions, quality issues, price increases and other risks associated with foreign sourcing could increase the Company’s operating costs and adversely impact the Company’s business and reputation.
4 unchanged sentences
Foreign manufacturing is subject to a number of risks, including work stoppages, transportation delays and interruptions, political instability, foreign currency exchange rate fluctuations, changing economic conditions, expropriation, nationalization, the imposition of tariffs, import and export controls and other non-tariff barriers and changes in governmental policies.
−Removed: Various factors could significantly interfere with the Company’s ability to source its products, including adverse developments in trade or political
−Removed: relations with China or other countries where it sources its products, or a shift in these countries' manufacturing capacities away from footwear and apparel to other industries.
−Removed: Other adverse developments, such as the coronavirus outbreak discussed below, could cause significant production and shipping delays.
+Added: Various factors could significantly interfere with the Company’s ability to source its products, including adverse developments in trade or political relations with China or other countries where it sources its products, or a shift in these countries' manufacturing capacities away from footwear and apparel to other industries.
+Added: Other adverse developments, such as the COVID-19 pandemic, could cause significant production and shipping delays.
Any of these events could have an adverse effect on the Company’s business, results of operations and financial position and, in particular, on the Company’s ability to meet customer demands and produce its products in a cost-effective manner.
−Removed: The recent coronavirus outbreak could harm our business.
−Removed: The recent outbreak of the coronavirus first identified in Wuhan, Hubei Province, China, could cause disruption to the Company’s suppliers and manufacturers located in China and elsewhere.
−Removed: Such disruption may occur as a result of facility closings, worker absenteeism, quarantines or other travel or health-related restrictions as a result of the coronavirus outbreaks or concern over the coronavirus.
−Removed: If the Company’s suppliers or manufacturers are so affected, the Company’s supply chain could be disrupted and its product shipments could be delayed.
−Removed: The Company may not be able to find alternative manufacturers suppliers or delivery methods on a cost-effective basis or at all.
−Removed: Closed retail stores and reduced consumer traffic and spending within or outside of China if the virus continues to spread could adversely sales of the Company’s products.
−Removed: If any of the foregoing occurs over a prolonged period, it could have an adverse effect on the Company’s business, results of operations and financial position and, in particular, on the Company’s ability to meet customer demands and produce its products in a cost-effective manner.
−Removed: Increases in the cost of raw materials, labor and services could adversely affect the Company’s results of operations.
−Removed: The Company’s ability to competitively price its products is dependent on the prices of commodities, such as cotton, leather, rubber, petroleum, cattle, pigskin hides, and other raw materials, used to make and transport its products, as well as the prices of equipment, labor, transportation and shipping, insurance and health care.
−Removed: The cost of commodities, equipment, services and materials is subject to change based on availability and general economic and market conditions that are difficult to predict.
−Removed: Various conditions, such as diseases affecting the availability of leather, affect the cost of the footwear marketed by the Company.
−Removed: Increases in costs for commodities, equipment, services and materials used in production could have a negative impact on the Company’s results of operations and financial position.
−Removed: The Company purchases pigskin hides for its leathers operations from a single domestic source pursuant to short-term contracts.
−Removed: If this source fails to continue to supply the Company with raw pigskin or supplies the Company with raw pigskin on less favorable terms, the Company’s cost of raw materials for its leathers operations could increase and, as a result, have a negative impact on the Company’s results of operations and financial position.
Labor disruptions could adversely affect the Company’s business.
12 unchanged sentences
Retail consolidation could lead to fewer wholesale customers, wholesale customers seeking more favorable price, payment or other terms from the Company and a decrease in the number of stores that carry the Company’s products.
−Removed: In addition, changes in
−Removed: the channels of distribution, such as the continued growth of eCommerce and related competitive pressures, and the sale of private label products by major retailers, could have an adverse effect on the Company’s results of operations and financial position.
−Removed: The Company’s consumer-direct operations have required, and will continue to require, a substantial investment and commitment of resources and are subject to numerous risks and uncertainties.
−Removed: The Company’s consumer-direct operations, including its brick and mortar locations as well as its eCommerce and mobile channels, have required substantial fixed investment in equipment and leasehold improvements, information systems, inventory and personnel.
−Removed: The Company has also made substantial operating lease commitments for retail space.
+Added: In addition, changes in the channels of distribution, such as the continued growth of eCommerce and related competitive pressures, and the sale of private label products by major retailers, could have an adverse effect on the Company’s results of operations and financial position.
+Added: The Company’s consumer-direct operations continue to require, substantial investment and commitment of resources and are subject to numerous risks, and uncertainties.
+Added: The Company’s consumer-direct operations, including its brick and mortar locations as well as its eCommerce and mobile channels, require substantial fixed investment in equipment and leasehold improvements, information systems, inventory and personnel.
+Added: The Company also has substantial operating lease commitments for retail space.
Due to the high fixed-cost structure associated with the Company’s brick and mortar consumer-direct operations, a decline in sales or the closure or poor performance of individual or multiple stores could result in significant lease termination costs, write-offs of equipment and leasehold improvements and employee-related costs.
−Removed: The success of our consumer-direct operations also depends on the Company’s ability to identify and adapt to changes in consumer spending patterns and retail shopping preferences, including the shift from brick and mortar to eCommerce and mobile channels, reductions in mall traffic, and the Company’s ability to effectively develop its eCommerce and mobile channels.
+Added: The success of its consumer-direct operations also depends on the Company’s ability to identify and adapt to changes in consumer spending patterns and retail shopping preferences, including the shift from brick and mortar to eCommerce and mobile channels, reductions in mall traffic and the Company’s ability to effectively develop its eCommerce and mobile channels.
The Company’s failure to successfully respond to these factors could adversely affect the Company’s consumer-direct business, as well as damage its reputation and brands, and could have an adverse effect on the Company’s results of operations and financial position.
−Removed: Expanding the Company’s brands into new markets and product categories and re-aligning its consumer-direct operations may be difficult and costly, and unsuccessful efforts to do so may adversely affect the Company’s brands and business.
−Removed: As part of the Company’s growth strategy, it seeks to enhance the positioning of its brands, to extend its brands into complementary product categories and to expand geographically.
−Removed: The Company may not be able to successfully implement any or all of these growth strategies, and unsuccessful efforts to do so could have an adverse effect on its results of operations and financial position.
−Removed: Part of the future growth and profitability of the Company’s consumer-direct operations is significantly dependent on the Company successfully developing and maintaining its eCommerce and mobile platforms.
−Removed: The Company cannot be sure whether its eCommerce and mobile platforms will be successful.
+Added: The Company’s reputation and competitive position depend on its third-party manufacturers, distributors, licensees and others complying with applicable laws and ethical standards.
+Added: The Company cannot ensure that its independent contract manufacturers, third-party distributors, third-party licensees and others with which it does business comply with all applicable laws and ethical standards relating to working conditions and other matters.
+Added: If a party with which the Company does business is found to have violated applicable laws or ethical standards, the Company could be subject to negative publicity that could damage its reputation, negatively affect the value of its brands and subject the Company to legal risks.
+Added: In addition, the Company relies on its third-party licensees to help preserve the value of the Company’s brands.
+Added: The Company’s attempts to protect its brands through approval rights over design, production processes, quality, packaging, merchandising, distribution, advertising and promotion of its licensed products may not be successful as the Company cannot completely control the use by its licensees of its licensed brands.
+Added: The misuse of a brand by a licensee could adversely affect the value of such brand.
+Added: Disruption of the Company’s information technology systems could adversely affect the Company’s business.
+Added: The Company’s information technology systems are critical to the operations of its business.
+Added: Any future material interruption, unauthorized access, impairment or loss of data integrity or malfunction of these systems could severely impact the Company’s business, including delays in product fulfillment and reduced efficiency in operations.
+Added: In addition, costs and potential problems and interruptions associated with the implementation of new or upgraded systems, or with maintenance or adequate support of existing systems, could disrupt or reduce the efficiency of the Company’s operations.
+Added: Disruption to the Company’s information technology systems may be caused by natural disasters, accidents, power disruptions, telecommunications failures, acts of terrorism or war, denial-of-service attacks, computer viruses, physical or electronic break-ins, or similar events or disruptions.
+Added: System redundancy may be ineffective or inadequate, and the Company’s disaster recovery planning may not be sufficient for all eventualities.
+Added: Such failures or disruptions could prevent access to the Company’s online services and preclude store transactions.
+Added: System failures and disruptions could also impede the manufacturing and shipping of products, transactions processing and financial reporting.
+Added: Additionally, the Company may be adversely affected if it is unable to improve, upgrade, maintain, and expand its technology systems.
+Added: If the Company encounters problems affecting its logistics and distribution systems, its ability to deliver its products to the market could be adversely affected.
+Added: The Company relies on owned or independently operated distribution facilities to transport, warehouse and ship products to its customers.
+Added: The Company’s logistics and distribution systems include computer-controlled and automated equipment, which are subject to a number of risks related to security or computer viruses, the proper operation of software and hardware, power interruptions or other system failures.
+Added: Substantially all of the Company’s products are distributed from a relatively small number of locations.
+Added: These operations could be interrupted by earthquakes, floods, fires or other natural disasters near its distribution centers or other events over which the Company has no control, such as the COVID-19 pandemic.
+Added: The Company’s business interruption insurance may not adequately protect the Company from the adverse effects that could be caused by significant disruptions affecting its distribution facilities, such as the long-term loss of customers or an erosion of brand image.
+Added: In addition, the Company’s distribution capacity depends upon the timely performance of services by third parties, including the transportation of products to and from the Company’s distribution facilities.
+Added: If the Company encounters problems affecting its distribution system, its results of operations and its ability to meet customer expectations, manage inventory, complete sales and achieve operating efficiencies could be adversely affected.
+Added: The Company faces risks associated with its growth strategy and acquiring businesses.
+Added: The Company has expanded its products and markets in part through strategic acquisitions and it may continue to do so in the future, depending on its ability to identify and successfully pursue suitable acquisition candidates.
+Added: Acquisitions involve numerous risks, including risks inherent in entering new markets in which the Company may not have prior experience;
+Added: potential loss of significant customers or key personnel of the acquired business;
+Added: not obtaining the expected benefits of the acquisition on a timely basis or at all;
+Added: managing geographically-remote operations;
+Added: and potential diversion of management’s attention from other aspects of the Company’s business operations.
+Added: Acquisitions may also cause the Company to incur debt or result in dilutive issuances of its equity securities, write-offs of goodwill and substantial amortization expenses associated with other intangible assets.
+Added: The Company may not be able to obtain financing for future acquisitions on favorable terms, making any such acquisitions more expensive.
+Added: Any such financing may have terms that restrict the Company’s operations.
+Added: The Company may not be able to successfully integrate the operations of any acquired businesses into its operations and achieve the expected benefits of any acquisitions.
+Added: In addition, the Company may not consummate a potential acquisition for a variety of reasons, but still incur material costs in connection with an acquisition that it cannot recover.
+Added: The failure to successfully integrate newly acquired businesses or achieve the expected benefits of strategic acquisitions in the future, or consummate a potential acquisition after incurring material costs, could have an adverse effect on the Company’s business, results of operations and financial position.
+Added: The Company’s international operations may be affected by legal, regulatory, political and economic risks.
+Added: The Company’s ability to conduct business in new and existing international markets is subject to legal, regulatory, political and economic risks.
+Added: These include:
+Added: • the burdens of complying with foreign laws and regulations, including trade and labor restrictions;
+Added: • compliance with U.S.
+Added: and other countries’ laws relating to foreign operations, including the U.S.
+Added: Foreign Corrupt Practices Act (“FCPA”), which prohibits U.S.
+Added: companies from making improper payments to foreign officials for the purpose of obtaining or retaining business;
+Added: • unexpected changes in regulatory requirements;
+Added: • new tariffs or other barriers in some international markets, including China.
+Added: The Company is also subject to general political and economic risks in connection with its international operations, including:
+Added: • political instability and terrorist attacks;
+Added: • differences in business culture;
+Added: • different laws governing relationships with employees and business partners;
+Added: • changes in diplomatic and trade relationships, including with China;
+Added: • general economic fluctuations in specific countries or markets.
+Added: The Company cannot predict whether quotas, duties, taxes, or other similar restrictions will be imposed by the United States or foreign countries upon the import or export of the Company's products in the future, or what effect any of these actions would have, if any, on the Company’s business, financial condition or results of operations.
+Added: Changes in regulatory, geopolitical, social or economic policies and other factors may have an adverse effect on the Company’s business in the future or may require the Company to exit a particular market or significantly modify the Company's current business practices.
+Added: Foreign currency exchange rate fluctuations could adversely impact the Company’s business.
+Added: Foreign currency exchange rate fluctuations affect the Company’s revenue and profitability.
+Added: Changes in foreign currency exchange rates may impact the Company’s financial results positively or negatively in any given period, which may make it difficult to compare the Company’s operating results from different periods.
+Added: Foreign currency exchange rate fluctuations may also adversely impact third parties that manufacture the Company’s products by increasing their costs of production and raw materials and making such costs more difficult to finance, thereby raising prices for the Company, its distributors and its licensees.
+Added: The Company’s hedging strategy may not successfully mitigate the Company’s foreign currency exchange rate risk.
+Added: For a more detailed discussion of the risks related to foreign currency exchange rate fluctuations, see Item 7A:
+Added: “Quantitative and Qualitative Disclosures About Market Risk.”
+Added: In addition, the Company's foreign subsidiaries purchase products in U.S.
+Added: dollars and the cost of those products will vary depending on the applicable foreign currency exchange rate, which will impact the price charged to customers.
+Added: The Company’s foreign distributors also purchase products in U.S.
+Added: dollars and sell in local currencies, which impacts the price to foreign consumers and in turn, impacts the amount of royalties paid to the Company in U.S.
+Added: dollar strengthens relative to foreign currencies, the Company's revenues and profits denominated in foreign currencies are reduced when converted into U.S.
+Added: dollars and the Company's margins may be negatively impacted by the increase in product costs.
+Added: Company may seek to mitigate the negative impacts of foreign currency exchange rate fluctuations through price increases and further actions to reduce costs, but the Company may not be able to fully offset the impact, if at all.
+Added: The Company’s success depends, in part, on its ability to manage these various foreign currency impacts as changes in the value of the U.S.
+Added: dollar relative to other currencies could have an adverse effect on the Company’s business and results of operations.
+Added: The Company’s quarterly sales and earnings may fluctuate, and the Company or securities analysts may not accurately estimate the Company’s financial results, which may result in volatility in, or a decline in, the Company's stock price.
+Added: The Company’s quarterly sales and earnings can vary due to a number of factors, many of which are beyond the Company’s control, including the following:
+Added: • In the wholesale business, sales of footwear depend on orders from major customers, who may change delivery schedules, change the mix of products they order or cancel orders without penalty.
+Added: • Changes to the Company's estimated annual tax rate which is based on projections of its domestic and international operating results for the year, which the Company reviews and revises as necessary each quarter.
+Added: • The Company's earnings are also sensitive to a number of factors that are beyond the Company’s control, including manufacturing and transportation costs, changes in product sales mix, geographic sales trends, weather conditions, customer demand, consumer sentiment and currency exchange rate fluctuations.
+Added: As a result of these specific and other general factors, the Company’s operating results will vary from quarter to quarter and the results for any particular quarter may not be indicative of results for the full year.
+Added: In addition, various securities analysts follow the Company’s financial results and issue reports.
+Added: These reports include information about the Company’s historical financial results as well as the analysts’ estimates of future performance.
+Added: The analysts’ estimates are based upon their own opinions and are often different from the Company’s estimates or expectations.
+Added: Any shortfall in sales or earnings from the levels expected by investors or securities analysts could cause a decrease in the trading price of the Company’s common stock.
+Added: Changes in general economic conditions and other factors affecting consumer spending could adversely affect the Company’s sales, costs, operating results or financial position.
+Added: The Company’s results of operations depend on factors affecting consumer disposable income and spending patterns.
+Added: These factors include general economic conditions, employment rates, business conditions, interest rates and tax policy in each of the markets and regions in which the Company or its third-party distributors and licensees operates.
+Added: Customers may defer or cancel purchases of the Company’s products due to uncertainty about global, regional or local economic conditions, and how such conditions may impact them.
+Added: Disposable income and consumer spending may decline due to recessionary economic cycles, high interest rates on consumer or business borrowings, restricted credit availability, inflation, high levels of unemployment or consumer debt, high tax rates, declines in consumer confidence or other factors.
+Added: A decline in disposable income and consumer spending could adversely affect demand for the Company’s products, which could adversely affect the Company's results of operations.
+Added: The Company operates in competitive industries and markets.
+Added: The Company competes with a large number of wholesalers, and retailers of footwear and apparel, and consumer-direct footwear and apparel companies.
+Added: Many of the Company’s competitors have greater resources and larger customer and consumer bases, are able, or elect, to sell their products at lower prices, or have greater financial, technical or marketing resources than the Company, particularly its competitors in the apparel and consumer-direct businesses.
+Added: The Company’s competitors may own or license brands with greater name recognition;
+Added: implement more effective marketing campaigns;
+Added: adopt more aggressive pricing policies;
+Added: make more attractive offers to potential employees, distribution partners and manufacturers;
+Added: or respond more quickly to changes in consumer preferences.
+Added: The Company’s continued ability to sell its products at competitive prices and to meet shifts in consumer preferences quickly will affect its future sales.
+Added: If the Company is unable to respond effectively to competitive pressures, its results of operations and financial position may be adversely affected.
Unseasonable or extreme weather conditions could adversely affect the Company’s results of operations.
7 unchanged sentences
In addition, consumer traffic may be reduced as a result of extreme weather conditions and a decrease in shopping traffic could have an adverse effect on the Company’s results of operations and financial position.
−Removed: Changes in general economic conditions and/or the credit markets affecting our distributors, suppliers and retailers could adversely affect the Company’s results of operations and financial position.
+Added: Changes in general economic conditions and/or the credit markets affecting the Company's distributors, suppliers and retailers could adversely affect the Company’s results of operations and financial position.
Changes in general economic conditions and/or the credit markets could have an adverse impact on the Company’s future results of operations and financial position.
1 unchanged sentence
In addition, if the Company’s third-party distributors, suppliers and retailers are not able to obtain financing on favorable terms, or at all, they may delay or cancel orders for the Company’s products or fail to meet their obligations to the Company in a timely manner, either of which could adversely impact the Company’s sales, cash flow and operating results.
+Added: Global political and economic uncertainty could adversely impact the Company’s business.
+Added: The Company’s products are marketed in approximately 170 countries and territories, and the Company sources a substantial majority of its products from foreign countries.
+Added: Concerns regarding acts of terrorism or regional and international conflicts and concerns regarding public health threats, such as the COVID-19 pandemic, have created and may in the future create significant global economic and political uncertainties that may have adverse effects on consumer demand, acceptance of U.S.
+Added: brands in international markets, foreign sourcing of products, shipping and transportation, product imports and exports and the sale of products in foreign markets, any of which could adversely affect the Company’s ability to source, manufacture, distribute and sell its products.
+Added: In addition, an economic downturn, whether actual or perceived, a further decrease in economic growth rates or an otherwise uncertain economic outlook in China or any other market in which the Company operates could have an adverse effect on the Company.
+Added: The Company cannot predict the timing, strength or duration of any economic slowdown or subsequent economic recovery, worldwide, in China or any other market in which the Company operates, or in its industry.
+Added: The Company is also subject to risks related to doing business in developing countries and economically volatile areas.
+Added: These risks include social, political and economic instability;
+Added: nationalization by local governmental authorities of the Company’s, its distributors’, or its licensees’ assets and operations;
+Added: slower payment of invoices;
+Added: and restrictions on the Company’s ability to repatriate foreign currency or receive payment of amounts owed by third-party distributors and licensees.
+Added: In addition, commercial laws in these areas may not be well developed or consistently administered, and new unfavorable laws may be retroactively applied.
+Added: Any of these risks could have an adverse impact on the Company’s prospects and results of operations in these areas.
+Added: Financial Risks
+Added: The Company’s operating results depend on effectively managing inventory levels.
+Added: The Company’s ability to effectively manage its inventories and accurately forecast demand are important factors in its operations.
+Added: Inventory shortages can impede the Company’s ability to meet demand, adversely affect the timing of shipments to customers and, consequently, adversely affect business relationships with retail customers, diminish brand loyalty and decrease sales.
+Added: Conversely, excess inventory can result in lower gross margins if the Company lowers prices in order to liquidate it.
+Added: In addition, inventory may become obsolete as a result of changes in consumer preferences over time.
+Added: The Company’s business, results of operations and financial position could be adversely affected if it is unable to effectively manage its inventory.
+Added: Increases or changes in duties, quotas, tariffs and other trade restrictions could adversely impact the Company’s sales and profitability.
+Added: All of the Company’s products manufactured overseas and imported into the U.S., Canada, the European Union and other countries are subject to customs duties collected by customs authorities.
+Added: The customs information submitted by the Company is routinely subject to review by customs authorities and any such review might result in the assessment of additional duties or penalties.
+Added: Additional U.S.
+Added: or foreign customs duties, quotas, tariffs, anti-dumping duties, safeguard measures, cargo restrictions, the loss of most favored nation trading status or other trade restrictions, including those due to changes in trade relations
+Added: between the U.S.
+Added: and other countries, may be imposed on the importation of the Company’s products in the future.
+Added: The imposition of such costs or restrictions in countries where the Company operates, as well as in countries where its third-party distributors and licensees operate, could result in increases in the cost of the Company’s products generally and adversely affect its sales and profitability.
+Added: Increases in the cost of raw materials, labor and services could adversely affect the Company’s results of operations.
+Added: The Company’s ability to competitively price its products depends on the prices of commodities, such as cotton, leather, rubber, petroleum, cattle, pigskin hides, and other raw materials, used to make and transport its products, as well as the prices of equipment, labor, transportation and shipping, insurance and health care.
+Added: The cost of commodities, equipment, services and materials is subject to change based on availability and general economic and market conditions that are difficult to predict.
+Added: Various conditions, such as diseases affecting the availability of leather, affect the cost of the footwear marketed by the Company.
+Added: Increases in costs for commodities, equipment, services and materials used in production could have a negative impact on the Company’s results of operations and financial position.
+Added: The Company purchases pigskin hides for its leathers operations from a single domestic source pursuant to short-term contracts.
+Added: If this source fails to continue to supply the Company with raw pigskin or supplies the Company with raw pigskin on less favorable terms, the Company’s cost of raw materials for its leathers operations could increase and, as a result, have a negative impact on the Company’s results of operations and financial position.
An increase in the Company’s effective tax rate or negative determinations by domestic or foreign tax authorities could have an adverse effect on the Company’s results of operations and financial position.
10 unchanged sentences
The final determination of any of these examinations could have an adverse effect on the Company’s results of operations and financial position.
−Removed: Failure of the Company’s third-party licensees and distributors to meet sales goals or to make timely payments on amounts owed to the Company could adversely affect the Company’s financial performance.
−Removed: In many international markets, independent third-party licensees or distributors sell the Company’s products.
−Removed: Failure by the Company’s licensees or distributors to meet planned annual sales goals or to make timely payments on amounts owed to the Company could have an adverse effect on the Company’s business, results of operations and financial position.
−Removed: If a change in licensee or distributor becomes necessary, it may be difficult and costly to locate an acceptable substitute distributor or licensee and the Company may incur increased costs and experience substantial disruption and a resulting loss of sales and brand equity in the market where such licensee or distributor operates.
−Removed: The Company’s reputation and competitive position depend on its third-party manufacturers, distributors, licensees and others complying with applicable laws and ethical standards.
−Removed: The Company cannot ensure that its independent contract manufacturers, third-party distributors, third-party licensees and others with which it does business comply with all applicable laws and ethical standards relating to working conditions and other matters.
−Removed: If a party with which the Company does business is found to have violated applicable laws or ethical standards, the Company could receive negative publicity that could damage its reputation, negatively affect the value of its brands and subject the Company to legal risks.
−Removed: In addition, the Company relies on its third-party licensees to help preserve the value of the Company’s brands.
−Removed: The Company’s attempts to protect its brands through approval rights over design, production processes, quality, packaging, merchandising, distribution, advertising and promotion of its licensed products may not be successful as the Company cannot completely control the use by its licensees of its licensed brands.
−Removed: The misuse of a brand by a licensee could adversely affect the value of such brand.
−Removed: Global political and economic uncertainty could adversely impact the Company’s business.
−Removed: The Company’s products are marketed in approximately 170 countries and territories, and the Company sources a substantial majority of its products from foreign countries.
−Removed: Concerns regarding acts of terrorism or regional and international conflicts and concerns regarding public health threats, such as the coronavirus outbreak, may create significant global economic and political uncertainties that may have adverse effects on consumer demand, acceptance of U.S.
−Removed: brands in international markets, foreign sourcing of products, shipping and transportation, product imports and exports and the sale of products in foreign markets, any of which could adversely affect the Company’s ability to source, manufacture, distribute and sell its products.
−Removed: Further, geo-political events in the countries and territories in which the Company markets or sources its products could have an adverse effect on the Company’s business.
−Removed: For example, in June 2016, voters in the United Kingdom approved an advisory referendum to withdraw from the European Union (“Brexit”) and the United Kingdom withdrew from the European Union on January 31, 2020.
−Removed: The uncertainties regarding trading between the United Kingdom and the European Union following an eleven-month transition period, and the terms of the trade agreement to be negotiated during this period, once determined, could disrupt the free movement of goods, services, and people between the United Kingdom and the European Union, adversely impact investor and consumer confidence, decrease consumer discretionary spending, including on our products, and result in increased legal and regulatory complexities.
−Removed: Any of these effects, among others, could adversely affect our business, results of operations and financial condition.
−Removed: In addition, an economic downturn, whether actual or perceived, a further decrease in economic growth rates or an otherwise uncertain economic outlook in China or any other market in which the Company operates could have an adverse effect on the
−Removed: The Company cannot predict the timing, strength or duration of any economic slowdown or subsequent economic recovery, worldwide, in China or any other market in which the Company operates, or in its industry.
−Removed: The Company is also subject to risks related to doing business in developing countries and economically volatile areas.
−Removed: These risks include social, political and economic instability;
−Removed: nationalization by local governmental authorities of the Company’s, its distributors’, or its licensees’ assets and operations;
−Removed: slower payment of invoices;
−Removed: and restrictions on the Company’s ability to repatriate foreign currency or receive payment of amounts owed by third-party distributors and licensees.
−Removed: In addition, commercial laws in these areas may not be well developed or consistently administered, and new unfavorable laws may be retroactively applied.
−Removed: Any of these risks could have an adverse impact on the Company’s prospects and results of operations in these areas.
−Removed: Global capital markets could enter a period of severe disruption and instability, which could have an adverse effect on debt and equity markets in the United States, which in turn could have a negative impact on the Company’s business, financial condition and results of operations.
−Removed: and global capital markets have experienced periods of disruption characterized by the freezing of available credit, a lack of liquidity in the debt capital markets, significant losses in the principal value of investments, the re-pricing of credit risk in the broadly syndicated credit market, the failure of major financial institutions and general volatility in the financial markets.
−Removed: During these periods of disruption, general economic conditions deteriorated with adverse consequences for the broader financial and credit markets, and the availability of debt and equity capital for the market as a whole, and financial services firms in particular, was reduced significantly.
−Removed: These conditions may recur for a prolonged period of time or materially worsen in the future.
−Removed: The Company may in the future have difficulty accessing capital, and a severe disruption in the global financial markets, deterioration in credit and financing conditions or uncertainty regarding U.S.
−Removed: government spending and deficit levels, European sovereign debt, Chinese economic slowdown or other global economic conditions could have an adverse effect on our business, financial condition and results of operations.
+Added: An impairment of goodwill or other intangibles could have an adverse impact to the Company’s results of operations.
+Added: The carrying value of goodwill represents the fair value of acquired businesses in excess of identifiable assets and liabilities as of the acquisition date.
+Added: The carrying value of other intangibles represents the fair value of trade names and other acquired intangibles as of the acquisition date.
+Added: Goodwill and other acquired intangibles expected to contribute indefinitely to the Company’s cash flows are not amortized but must be evaluated by the Company at least annually for impairment.
+Added: If the carrying amounts of one or more of these assets are not recoverable based upon discounted cash flow and market-approach analyses, the carrying amounts of such assets are impaired by the estimated difference between the carrying value and estimated fair value.
+Added: An impairment charge could adversely affect the Company’s results of operations, such as the impairment recorded associated with the Sperry trade name recorded in fiscal 2020.
+Added: The Company’s current level of indebtedness could adversely affect the Company by decreasing business flexibility and increasing borrowing costs.
+Added: The Company’s current level of indebtedness could adversely affect the Company by decreasing its business flexibility and increasing its borrowing costs.
+Added: The Company has debt outstanding under a senior secured credit agreement (“Credit Agreement”) and senior notes.
+Added: The Credit Agreement and the indenture governing the senior notes contain customary restrictive covenants imposing operating and financial restrictions on the Company, including restrictions that may limit the Company’s ability to engage in acts that may be in its long-term best interests.
+Added: These covenants restrict the ability of the Company and certain of its subsidiaries to, among other things:
+Added: incur or guarantee indebtedness;
+Added: pay dividends or repurchase stock;
+Added: enter into transactions with affiliates;
+Added: consummate asset sales, acquisitions or mergers;
+Added: prepay certain other indebtedness;
+Added: or make investments.
+Added: In addition, the restrictive covenants in the Credit Agreement require the Company to maintain specified financial ratios and satisfy other financial condition tests.
+Added: These restrictive covenants may limit the Company’s ability to finance future operations or capital needs or to engage in other business activities.
+Added: The Company’s ability to comply with any financial covenants could be materially affected by events beyond its control and the Company may be unable to satisfy any such requirements.
+Added: If the Company fails to comply with these covenants, it may need to seek waivers or amendments of such covenants, seek alternative or additional sources of financing or reduce its expenditures.
+Added: The Company may be unable to obtain such waivers, amendments or alternative or additional financing on favorable terms or at all.
+Added: Legal and Regulatory Risks
If the Company is unsuccessful in establishing and protecting its intellectual property, the value of its brands could be adversely affected.
10 unchanged sentences
Expiration or early termination by the licensor of any of these license agreements could have an adverse effect on the Company’s business, results of operations and financial position.
−Removed: The Company’s inability to attract and retain executive managers and other key employees, or the loss of one or more executive managers or other key employees, could adversely affect the Company’s business.
−Removed: The Company depends on its executive management and other key employees.
−Removed: In the footwear, apparel and consumer-direct markets, competition for key executive talent is intense and the Company’s failure to identify, attract or retain executive managers or other key employees could adversely affect its business.
−Removed: The Company must offer and maintain competitive compensation packages to effectively recruit and retain such individuals.
−Removed: Further, the loss of one or more executive managers or other key employees, or the Company’s failure to successfully implement succession planning, could adversely affect the Company’s business, results of operations and financial position.
Changes in employment laws and regulations and other related changes may lead to higher employment and pension costs for the Company.
Changes in employment laws and regulations in the countries and territories in which the Company operates and other factors could increase the Company’s overall employment costs.
−Removed: The Company’s employment costs include costs relating to health care
−Removed: and retirement benefits, including U.S.-based defined benefit pension plans.
+Added: The Company’s employment costs include costs relating to health care and retirement benefits, including U.S.-based defined benefit pension plans.
The annual cost of benefits can vary significantly depending on a number of factors, including changes in the assumed or actual rate of return on pension plan assets, a change in the discount rate or mortality assumptions used to determine the annual service cost related to the defined benefit plans, a change in the method or timing of meeting pension funding obligations and the rate of health care cost inflation.
Increases in the Company’s overall employment and pension costs could have an adverse effect on the Company’s business, results of operations and financial position.
−Removed: The Company’s marketing programs, eCommerce initiatives and use of consumer information are governed by an evolving set of laws, industry standards and enforcement trends and unfavorable changes in those laws, standards or trends, or the Company’s failure to comply with existing or future laws, could substantially harm the Company’s business and results of operations.
−Removed: The Company collects, maintains and uses data provided to it through its online activities and other consumer interactions in its business.
−Removed: The Company’s current and future marketing programs depend on its ability to collect, maintain and use this information, and its ability to do so is subject to certain contractual restrictions in third party contracts as well as evolving international, federal and state laws, industry standards and enforcement trends.
−Removed: The Company strives to comply with all applicable laws and other legal obligations relating to privacy, data protection and consumer protection, including those relating to the use of data for marketing purposes.
−Removed: It is possible, however, that these requirements may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another, may conflict with other rules or may conflict with the Company’s practices.
−Removed: If so, the Company may suffer damage to its reputation and be subject to proceedings or actions against it by governmental entities or others.
−Removed: Any such proceeding or action could hurt the Company’s reputation, force it to spend significant amounts to defend or change its practices, distract its management from operating the Company's business, increase its costs of doing business, and result in monetary liability.
−Removed: In addition, as data privacy and marketing laws change, the Company may incur additional costs to ensure it remains in compliance.
−Removed: If applicable data privacy and marketing laws become more restrictive at the federal or state level, the Company’s compliance costs may increase, the Company’s ability to effectively engage customers via personalized marketing may decrease, its opportunities for growth may be curtailed by its compliance capabilities or reputational harm and its potential liability for security breaches may increase.
−Removed: Because the Company processes and transmits payment card information, the Company is subject to the Payment Card Industry (“PCI”) Data Security Standard (the “Standard”), and card brand operating rules (“Card Rules”).
−Removed: The Standard is a comprehensive set of requirements for enhancing payment account data security that was developed by the PCI Security Standards Council to help facilitate the broad adoption of consistent data security measures.
−Removed: The Company is required by payment card network rules to comply with the Standard, and the Company’s failure to do so may result in fines or restrictions on its ability to accept payment cards.
−Removed: Under certain circumstances specified in the payment card network rules, the Company may be required to submit to periodic audits, self-assessments or other assessments of its compliance with the Standard.
−Removed: Such activities may reveal that the Company has failed to comply with the Standard.
−Removed: If an audit, self-assessment or other test determines that the Company needs to take steps to remediate any deficiencies, such remediation efforts may distract the Company’s management team and require it to undertake costly and time consuming remediation efforts.
−Removed: In addition, even if the Company complies with the Standard, there is no assurance that it will be protected from a security breach.
−Removed: Further, changes in technology and processing procedures may result in changes in the Card Rules.
−Removed: Such changes may require the Company to make significant investments in operating systems and technology that may impact business.
−Removed: Failure to keep up with changes in technology could result in loss of business.
−Removed: Failure to comply with the Standard or Card Rules could result in losing certification under the PCI standards and an inability to process payments.
−Removed: The Company is also subject to U.S.
−Removed: and international data privacy and cybersecurity laws and regulations, which may impose fines and penalties for noncompliance and may have an adverse effect on the Company's operations.
−Removed: For example, in 2016, the European Union formally adopted the General Data Protection Regulation ("GDPR"), which applied in all European Union member states effective May 25, 2018.
−Removed: GDPR introduces new data protection requirements in the European Union and substantial fines for breaches of the data protection rules.
−Removed: GDPR increases our responsibility and potential liability in relation to personal data that we collect, process and transfer, and we have put in place additional mechanisms to ensure compliance with the new data protection rules.
−Removed: Any failure to comply with these rules and related national laws of European Union member states, could lead to government enforcement actions and significant penalties against us, and could adversely affect our business, financial condition, cash flows and results of operations.
−Removed: In addition, California recently adopted the California Consumer Privacy Act (“CCPA”), which became effective January 1, 2020, and limits how we may collect and use personal data.
−Removed: The effects of the CCPA potentially are far-reaching and may require us to modify our data processing practices and policies and incur substantial compliance-related costs and expenses.
−Removed: Compliance with any of the foregoing laws and regulations can be costly.
−Removed: A violation of any laws or regulations relating to the collection or use of personal information could result in the imposition of fines against us.
−Removed: Disruption of the Company’s information technology systems could adversely affect the Company’s business.
−Removed: The Company’s information technology systems are critical to the operations of its business.
−Removed: Any future material interruption, unauthorized access, impairment or loss of data integrity or malfunction of these systems could severely impact the Company’s business, including delays in product fulfillment and reduced efficiency in operations.
−Removed: In addition, costs and potential problems and interruptions associated with the implementation of new or upgraded systems, or with maintenance or adequate support of existing systems, could disrupt or reduce the efficiency of the Company’s operations.
−Removed: Disruption to the Company’s information technology systems may be caused by natural disasters, accidents, power disruptions, telecommunications failures, acts of terrorism or war, denial-of-service attacks, computer viruses, physical or electronic break-ins, or similar events or disruptions.
−Removed: System redundancy may be ineffective or inadequate, and the Company’s disaster recovery planning may not be sufficient for all eventualities.
−Removed: Such failures or disruptions could prevent access to the Company’s online services and preclude store transactions.
−Removed: System failures and disruptions could also impede the manufacturing and shipping of products, transactions processing and financial reporting.
−Removed: Additionally, the Company may be adversely affected if it is unable to improve, upgrade, maintain, and expand its technology systems.
The Company’s and its vendors’ databases containing personal information and payment card data of the Company’s customers, employees and other third parties, could be breached, which could subject the Company to adverse publicity, litigation, fines and expenses.
9 unchanged sentences
accordingly, the Company may be unable to anticipate these techniques or implement adequate preventative measures.
−Removed: Any failure to maintain the security of the Company’s customers’ sensitive information, or data belonging to it or its suppliers, could put it at a competitive disadvantage, result in deterioration of its customers’ confidence in it, and subject it to potential litigation, liability, fines and penalties, resulting in a possible adverse impact on its financial condition and results of operations.
−Removed: While the Company maintains insurance coverage that may, subject to policy terms and conditions, cover certain aspects of cyber risks, such insurance coverage may be insufficient to cover all losses and would not remedy damage to its reputation.
+Added: Any failure to maintain the security of the Company’s customers’ sensitive information, or data belonging to it or its suppliers, could
+Added: put it at a competitive disadvantage, result in deterioration of its customers’ confidence in it, and subject it to potential litigation, liability, fines and penalties, resulting in a possible adverse impact on its financial condition and results of operations.
+Added: While the Company's insurance coverage may be insufficient to cover all losses and would not remedy damage to the Company's reputation.
In addition, employees may intentionally or inadvertently cause data or security breaches that result in unauthorized release of personal or confidential information.
2 unchanged sentences
In addition, if the Company is unable to comply with bank and PCI security standards, it may be subject to fines, restrictions and expulsion from card acceptance programs, which could adversely affect the Company’s consumer-direct operations.
−Removed: If the Company encounters problems affecting its logistics and distribution systems, its ability to deliver its products to the market could be adversely affected.
−Removed: The Company relies on owned or independently operated distribution facilities to transport, warehouse and ship products to its customers.
−Removed: The Company’s logistics and distribution systems include computer-controlled and automated equipment, which may be subject to a number of risks related to security or computer viruses, the proper operation of software and hardware, power interruptions or other system failures.
−Removed: Substantially all of the Company’s products are distributed from a relatively small number of locations.
−Removed: Therefore, its operations could be interrupted by earthquakes, floods, fires or other natural disasters near its distribution centers, including coronavirus outbreak discussed above.
−Removed: The Company’s business interruption insurance may not adequately protect the Company from the adverse effects that could be caused by significant disruptions affecting its distribution facilities, such as the long-term loss of customers or an erosion of brand image.
−Removed: In addition, the Company’s distribution capacity depends upon the timely performance of services by third parties, including the transportation of products to and from the Company’s distribution facilities.
−Removed: If the Company encounters problems affecting its distribution system, its results of operations and its ability to meet customer expectations, manage inventory, complete sales and achieve operating efficiencies could be adversely affected.
−Removed: The Company’s business depends on effective marketing, advertising and promotional programs.
−Removed: Consumer traffic and demand for the Company's merchandise is influenced by the Company’s advertising, marketing and promotional activities, the name recognition and reputation of its brands.
−Removed: Although the Company uses marketing, advertising and promotional programs to attract consumers through various media, including social media, database marketing and print, its competitors may spend more or use different approaches, which could provide them with a competitive advantage.
−Removed: The Company’s promotional activity and other programs may not be effective, may be perceived negatively or could require increased expenditures, which could adversely impact the Company’s business, results of operations and financial position.
−Removed: The Company faces risks associated with its growth strategy and acquiring businesses.
−Removed: The Company has expanded its products and markets in part through strategic acquisitions and it may continue to do so in the future, depending on its ability to identify and successfully pursue suitable acquisition candidates.
−Removed: Acquisitions involve numerous risks, including risks inherent in entering new markets in which the Company may not have prior experience;
−Removed: potential loss of significant customers or key personnel of the acquired business;
−Removed: not obtaining the expected benefits of the acquisition on a timely basis or at all;
−Removed: managing geographically-remote operations;
−Removed: and potential diversion of management’s attention from other aspects of the Company’s business operations.
−Removed: Acquisitions may also cause the Company to incur debt or result in dilutive issuances of its equity securities, write-offs of goodwill and substantial amortization expenses associated with other intangible assets.
−Removed: The Company may not be able to obtain financing for future acquisitions on favorable terms, making any such acquisitions more expensive.
−Removed: Any such financing may have terms that restrict the Company’s operations.
−Removed: The Company may be unable to provide assurance that it will be able to successfully integrate the operations of any acquired businesses into its operations and achieve the expected benefits of any acquisitions.
−Removed: In addition, the Company may not consummate a potential acquisition for a variety of reasons, but it may nonetheless incur material costs in connection with an acquisition that it cannot recover.
−Removed: The failure to successfully integrate newly acquired businesses or achieve the expected benefits of strategic acquisitions in the future, or consummate a potential acquisition after incurring material costs, could have an adverse effect on the Company’s business, results of operations and financial position.
−Removed: Maintenance and growth of the Company’s business depends upon the availability of adequate capital.
−Removed: The maintenance and growth of the Company’s business depends on the availability of adequate capital, which in turn depends in large part on cash flow generated by the Company’s business and the availability of equity and debt financing.
−Removed: The Company cannot provide assurance that its operations will generate positive cash flow or that it will be able to obtain equity or debt financing on acceptable terms, or at all.
−Removed: Further, the Company cannot provide assurance that it will be able to finance any expansion plans.
−Removed: An impairment of goodwill or other intangibles could have an adverse impact to the Company’s results of operations.
−Removed: The carrying value of goodwill represents the fair value of acquired businesses in excess of identifiable assets and liabilities as of the acquisition date.
−Removed: The carrying value of other intangibles represents the fair value of trade names and other acquired intangibles as of the acquisition date.
−Removed: Goodwill and other acquired intangibles expected to contribute indefinitely to the Company’s cash flows are not amortized but must be evaluated by the Company at least annually for impairment.
−Removed: If the carrying amounts of one or more of these assets are not recoverable based upon discounted cash flow and market-approach analyses, the carrying amounts of such assets are impaired by the estimated difference between the carrying value and estimated fair value.
−Removed: An impairment charge could adversely affect the Company’s results of operations.
−Removed: Changes in government regulation may increase the Company’s costs of compliance and failure to comply with government regulations or other standards may adversely affect its brands and business.
−Removed: The Company’s business is affected by changes in government and regulatory policies in the U.S.
−Removed: and in foreign jurisdictions.
−Removed: New requirements relating to product safety and testing and new environmental requirements, as well as changes in tax laws, duties, tariffs and quotas, could have a negative impact on the Company’s ability to produce and market footwear at competitive prices.
−Removed: Failure to comply with such regulations, as well as to comply with ethical, social, product, labor and environmental standards, could also jeopardize the Company’s reputation and potentially lead to various adverse consumer actions, including boycotts.
−Removed: Any negative publicity about these types of concerns may reduce demand for the Company’s products.
−Removed: Damage to the Company’s reputation or loss of consumer confidence for any of these or other reasons could adversely affect the Company’s results of operations, as well as require additional resources to rebuild its reputation and brand value.
The Company’s operations are subject to environmental and workplace safety laws and regulations, and costs or claims related to these requirements could adversely affect the Company’s business.
The Company’s operations are subject to various federal, state and local laws and regulations relating to the protection of the environment, including those governing the discharge of pollutants into the air, soil and water, the management and disposal of solid and hazardous materials and wastes, employee exposure to hazards in the workplace, and the investigation and remediation of contamination resulting from releases of hazardous materials.
−Removed: Failure to comply with legal requirements could result in, among
−Removed: other things, revocation of required licenses, administrative enforcement actions, fines and civil and criminal liability.
+Added: Failure to comply with legal requirements could result in, among other things, revocation of required licenses, administrative enforcement actions, fines and civil and criminal liability.
Various third parties could also bring actions against the Company alleging health-related or other harm arising from non-compliance.
4 unchanged sentences
The Company may be named as a defendant from time to time in lawsuits and regulatory actions relating to its business.
−Removed: For example, regulatory actions, putative class actions lawsuits and individual lawsuits have been filed against the Company alleging claims relating to property damage, remediation and human health effects, among other claims, arising from the Company’s operations, including its handling, storage, treatment, transportation and/or disposal of waste.
+Added: For example, regulatory actions, punative class actions lawsuits and individual lawsuits have been filed against the Company alleging claims relating to property damage, remediation and human health effects, among other claims, arising from the Company’s operations, including its handling, storage, treatment, transportation and/or disposal of waste.
These claims are discussed in more detail in Note 17 to the consolidated financial statements.
7 unchanged sentences
These provisions could also discourage proxy contests and make it more difficult for stockholders to replace the majority of the Company's directors and take other corporate actions that may be beneficial to the Company’s stockholders.
−Removed: There are risks, including stock market volatility, inherent in owning the Company’s common stock.
−Removed: The market price and volume of the Company’s common stock have been, and may continue to be, subject to significant fluctuations.
−Removed: These fluctuations may arise from general stock market conditions, the impact of risk factors described in this Item 1A on the Company’s results of operations and financial position, or a change in opinion in the market regarding the Company’s business prospects or other factors, many of which may be outside the Company’s immediate control.
−Removed: Changes in the amounts and frequency of share repurchases or dividends also could adversely affect the value of the Company’s common stock.
−Removed: The Company’s quarterly sales and earnings may fluctuate, and the Company or securities analysts may not accurately estimate the Company’s financial results, which may result in volatility in, or a decline in, the Company's stock price.
−Removed: The Company’s quarterly sales and earnings can vary due to a number of factors, many of which are beyond the Company’s control, including the following:
−Removed: In the wholesale business, sales of footwear are dependent on orders from major customers, who may change delivery schedules, change the mix of products they order or cancel orders without penalty.
−Removed: Wholesale customers set the delivery schedule for shipments of the Company’s products, which could cause shifts of sales between quarters.
−Removed: The Company's estimated annual tax rate is based on projections of our domestic and international operating results for the year, which the Company reviews and revises as necessary each quarter.
−Removed: The Company's earnings are also sensitive to a number of factors that are beyond the Company’s control, including manufacturing and transportation costs, changes in product sales mix, geographic sales trends, weather conditions, customer demand, consumer sentiment and currency exchange rate fluctuations.
−Removed: As a result of these specific and other general factors, the Company’s operating results will vary from quarter to quarter and the results for any particular quarter may not be indicative of results for the full year.
−Removed: Any shortfall in sales or earnings from the levels expected by investors or securities analysts could cause a decrease in the trading price of the Company’s common stock.
−Removed: In addition, various securities analysts follow the Company’s financial results and issue reports.
−Removed: These reports include information about the Company’s historical financial results as well as the analysts’ estimates of future performance.
−Removed: The analysts’ estimates
−Removed: are based upon their own opinions and are often different from the Company’s estimates or expectations.
−Removed: If the Company’s operating results are below the estimates or expectations of public market analysts and investors, the Company’s stock price could decline.
−Removed: The Company’s current level of indebtedness could adversely affect the Company by decreasing business flexibility and increasing borrowing costs.
−Removed: The Company’s current level of indebtedness could adversely affect the Company by decreasing its business flexibility and increasing its borrowing costs.
−Removed: The Company has debt outstanding under a senior secured credit agreement (“Credit Agreement”) and senior notes.
−Removed: The Credit Agreement and the indenture governing the senior notes contain customary restrictive covenants imposing operating and financial restrictions on the Company, including restrictions that may limit the Company’s ability to engage in acts that may be in its long-term best interests.
−Removed: These covenants restrict the ability of the Company and certain of its subsidiaries to, among other things:
−Removed: incur or guarantee indebtedness;
−Removed: pay dividends or repurchase stock;
−Removed: enter into transactions with affiliates;
−Removed: consummate asset sales, acquisitions or mergers;
−Removed: prepay certain other indebtedness;
−Removed: or make investments.
−Removed: In addition, the restrictive covenants in the Credit Agreement require the Company to maintain specified financial ratios and satisfy other financial condition tests.
−Removed: These restrictive covenants may limit the Company’s ability to finance future operations or capital needs or to engage in other business activities.
−Removed: The Company’s ability to comply with any financial covenants could be materially affected by events beyond its control and the Company may be unable to satisfy any such requirements.
−Removed: If the Company fails to comply with these covenants, it may need to seek waivers or amendments of such covenants, seek alternative or additional sources of financing or reduce its expenditures.
−Removed: The Company may be unable to obtain such waivers, amendments or alternative or additional financing on favorable terms or at all.
−Removed: The Company’s results of operations, financial position, and cash flows, and its ability to conduct business in international markets may be affected by legal, regulatory, political and economic risks.
−Removed: The Company’s ability to conduct business in new and existing international markets is subject to legal, regulatory, political and economic risks.
−Removed: These include:
−Removed: the burdens of complying with foreign laws and regulations, including trade and labor restrictions;
−Removed: compliance with U.S.
−Removed: and other countries’ laws relating to foreign operations, including the U.S.
−Removed: Foreign Corrupt Practices Act (“FCPA”), which prohibits U.S.
−Removed: companies from making improper payments to foreign officials for the purpose of obtaining or retaining business;
−Removed: unexpected changes in regulatory requirements;
−Removed: new tariffs or other barriers in some international markets, including China.
−Removed: The Company is also subject to general political and economic risks in connection with our international operations, including:
−Removed: political instability, including due to Brexit, and terrorist attacks;
−Removed: differences in business culture;
−Removed: different laws governing relationships with employees and business partners;
−Removed: changes in diplomatic and trade relationships, including with China;
−Removed: general economic fluctuations in specific countries or markets.
−Removed: The Company cannot predict whether quotas, duties, taxes, or other similar restrictions will be imposed by the United States or foreign countries upon the import or export of our products in the future, or what effect any of these actions would have, if any, on the Company’s business, financial condition or results of operations.
−Removed: Changes in regulatory, geopolitical, social or economic policies and other factors may have an adverse effect on the Company’s business in the future or may require us to exit a particular market or significantly modify our current business practices.
+Added: The Company’s marketing programs, eCommerce initiatives and use of consumer information are governed by an evolving set of laws, industry standards and enforcement trends and unfavorable changes in those laws, standards or trends, or the Company’s failure to comply with existing or future laws, could negatively impact the Company’s business and results of operations.
+Added: The Company collects, maintains and uses data provided to it through its online activities and other consumer interactions in its business.
+Added: The Company’s current and future marketing programs depend on its ability to collect, maintain and use this information, and its ability to do so is subject to certain contractual restrictions in third party contracts as well as evolving international, federal and state laws, industry standards and enforcement trends.
+Added: The Company strives to comply with all applicable laws and other legal obligations relating to privacy, data protection and consumer protection, including those relating
+Added: to the use of data for marketing purposes.
+Added: These requirements may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another, may conflict with other rules or may conflict with the Company’s practices.
+Added: If the Company is not able to comply with any applicable requirements, the Company reputation could be negatively impacted and the Company may be subject to proceedings or actions against it by governmental entities or others.
+Added: In addition, as data privacy and marketing laws change, the Company may incur additional costs to ensure it remains in compliance.
+Added: If applicable data privacy and marketing laws become more restrictive at the federal or state level, the Company’s compliance costs may increase, the Company’s ability to effectively engage customers via personalized marketing may decrease which could potentially impact growth.
+Added: Because the Company processes and transmits payment card information, the Company is subject to the Payment Card Industry (“PCI”) Data Security Standard (the “Standard”), and card brand operating rules (“Card Rules”).
+Added: The Standard is a comprehensive set of requirements for enhancing payment account data security that was developed by the PCI Security Standards Council to help facilitate the broad adoption of consistent data security measures.
+Added: The Company is required by payment card network rules to comply with the Standard, and the Company’s failure to do so may result in fines or restrictions on its ability to accept payment cards.
+Added: Under certain circumstances specified in the payment card network rules, the Company may be required to submit to periodic audits, self-assessments or other assessments of its compliance with the Standard.
+Added: Such activities may reveal that the Company has failed to comply with the Standard.
+Added: If an audit, self-assessment or other test determines that the Company needs to take steps to remediate any deficiencies, such remediation efforts may require it to undertake remediation efforts.
+Added: In addition, even if the Company complies with the Standard, there is no assurance that it will be protected from a security breach.
+Added: Further, changes in technology and processing procedures may result in changes in the Card Rules.
+Added: Such changes may require the Company to make significant investments in operating systems and technology that may impact business.
+Added: Failure to keep up with changes in technology could impact growth opportunities.
+Added: Failure to comply with the Standard or Card Rules could result in losing certification under the PCI standards and an inability to process payments.
+Added: The Company is also subject to U.S.
+Added: and international data privacy and cybersecurity laws and regulations, which may impose fines and penalties for noncompliance and may have an adverse effect on the Company's operations.
+Added: For example, the General Data Protection Regulation ("GDPR"), which applies in all European Union member states introduced new data protection requirements in the European Union and substantial fines for breaches of the data protection rules.
+Added: GDPR increases our responsibility and potential liability in relation to personal data that we collect, process and transfer, and we have put in place additional mechanisms to ensure compliance with the new data protection rules.
+Added: Any failure to comply with these rules and related national laws of European Union member states, could lead to government enforcement actions and significant penalties against us, and could adversely affect our business, financial condition, cash flows and results of operations.
+Added: In addition, the California Consumer Privacy Act (“CCPA”), which became effective January 1, 2020, and limits how we may collect and use personal data.
+Added: The effects of the CCPA governs the Company's data processing practices and policies.
The Company operates in many different international markets and could be adversely affected by violations of the FCPA and similar worldwide anti-corruption laws.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.