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HBI » Topics » Our supply chain relies on an extensive network of foreign operations and any disruption to or adverse impact on such operations may adversely affect our business, results of operations, financial condition and cash flows.

These excerpts taken from the HBI 10-K filed Feb 19, 2008.
Our supply chain relies on an extensive network of foreign operations and any disruption to or adverse impact on such operations may adversely affect our business, results of operations, financial condition and cash flows.
 
We have an extensive global supply chain in which a significant portion of our products are manufactured in or sourced from locations in Central America, the Caribbean Basin, Mexico and Asia. Potential events that may disrupt our foreign operations include:
 
  •  political instability and acts of war or terrorism or other international events resulting in the disruption of trade;
 
  •  other security risks;
 
  •  disruptions in shipping and freight forwarding services;
 
  •  increases in oil prices, which would increase the cost of shipping;
 
  •  interruptions in the availability of basic services and infrastructure, including power shortages;
 
  •  fluctuations in foreign currency exchange rates resulting in uncertainty as to future asset and liability values, cost of goods and results of operations that are denominated in foreign currencies;
 
  •  extraordinary weather conditions or natural disasters, such as hurricanes, earthquakes or tsunamis; and
 
  •  the occurrence of an epidemic, the spread of which may impact our ability to obtain products on a timely basis.
 
Disruptions in our foreign supply chain could negatively impact our business by interrupting production in offshore facilities, increasing our cost of sales, disrupting merchandise deliveries, delaying receipt of the products into the United States or preventing us from sourcing our products at all. Depending on timing, these events could also result in lost sales, cancellation charges or excessive markdowns. All of the foregoing can have an adverse affect on our business, results of operations, financial condition and cash flows.
 
Our
supply chain relies on an extensive network of foreign
operations and any disruption to or adverse impact on such
operations may adversely affect our business, results of
operations, financial condition and cash flows.


 



We have an extensive global supply chain in which a significant
portion of our products are manufactured in or sourced from
locations in Central America, the Caribbean Basin, Mexico and
Asia. Potential events that may disrupt our foreign operations
include:


 






















































































  • 
political instability and acts of war or terrorism or other
international events resulting in the disruption of trade;
 
  • 
other security risks;
 
  • 
disruptions in shipping and freight forwarding services;
 
  • 
increases in oil prices, which would increase the cost of
shipping;
 
  • 
interruptions in the availability of basic services and
infrastructure, including power shortages;
 
  • 
fluctuations in foreign currency exchange rates resulting in
uncertainty as to future asset and liability values, cost of
goods and results of operations that are denominated in foreign
currencies;
 
  • 
extraordinary weather conditions or natural disasters, such as
hurricanes, earthquakes or tsunamis; and
 
  • 
the occurrence of an epidemic, the spread of which may impact
our ability to obtain products on a timely basis.


 



Disruptions in our foreign supply chain could negatively impact
our business by interrupting production in offshore facilities,
increasing our cost of sales, disrupting merchandise deliveries,
delaying receipt of the products into the United States or
preventing us from sourcing our products at all. Depending on
timing, these events could also result in lost sales,
cancellation charges or excessive markdowns. All of the
foregoing can have an adverse affect on our business, results of
operations, financial condition and cash flows.


 




This excerpt taken from the HBI 10-K filed Sep 28, 2006.
Our supply chain relies on an extensive network of foreign operations and any disruption to or adverse impact on such operations may adversely affect our business, results of operations and financial condition.
 
We have an extensive global supply chain in which a significant portion of our products are manufactured in or sourced from locations in Central America, the Caribbean Basin, Mexico and Asia. Potential events that may disrupt our foreign operations include:
 
  •   political instability and acts of war or terrorism;
 
  •   disruptions in shipping and freight forwarding services;
 
  •   increases in oil prices, which would increase the cost of shipping;
 
  •   interruptions in the availability of basic services and infrastructure, including power shortages;
 
  •   fluctuations in foreign currency exchange rates resulting in uncertainty as to future asset and liability values, cost of goods and results of operations that are denominated in foreign currencies;
 
  •   extraordinary weather conditions or natural disasters, such as hurricanes, earthquakes or tsunamis; and
 
  •   the occurrence of an epidemic, the spread of which may impact our ability to obtain products on a timely basis.
 
Disruptions to our foreign operations have an adverse impact on our supply chain that can result in production and sourcing interruptions, increases in our cost of sales and delayed deliveries of our products to our customers, all of which can have an adverse affect on our business, results of operations and financial condition.


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EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 19, 2008
10-K
Sep 28, 2006

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