723612--3/1/2006--CENDANT

related topics

{condition, economic, financial}

{customer, product, revenue}

{acquisition, growth, future}

{capital, credit, financial}

{cost, operation, labor}

{investment, property, distribution}

{product, market, service}

{loan, real, estate}

{system, service, information}

{regulation, government, change}

{gas, price, oil}

Each of the independent companies resulting from the completion of the Plan of Separation may be unable to achieve some or all of the benefits that we expect will be achieved from the separation transactions. Each of the independent companies may be unable to make, on a timely or cost-effective basis, the changes necessary to operate as a company independent from the other Cendant businesses and the agreements among the separated businesses may not reflect terms that would have resulted from arm s-length negotiations between unaffiliated parties. As part of the Separation Plan, we anticipate that each of the independent companies will incur substantial debt with external lenders, which could subject them to various restrictions and decrease their profitability. Risks Related to our Businesses Adverse developments in general business, economic and political conditions could have a material adverse effect on our financial condition and our results of operations. Revenues in our Travel Related Businesses are highly dependent on the travel and transportation industries, and particularly on airlines, and a prolonged substantial decrease in travel volume could adversely affect us. We cannot assure you that we will be able to successfully integrate recent and any future acquisitions or that such acquisitions will have the anticipated impact on our earnings and results of operations. We may not be able to achieve our objectives for growth. A failure to maintain our investment-grade debt ratings could impact our ability to obtain financing on favorable terms and could negatively impact our business. We are reliant upon information technology to operate all of our businesses, and, in particular, the success of our travel distribution businesses depends on maintaining the integrity of, and upgrading the quality of, its systems and infrastructure. Several of our businesses are highly regulated and any failure to comply with such regulations or any changes in such regulations could adversely affect our business. The cyclical nature of the residential real estate market could adversely affect the results of operations of our Real Estate Services segment. Our brokerage operations are concentrated in metropolitan areas which could subject us to local and regional economic conditions that could differ materially from prevailing economic conditions in other parts of the country. Alternative models of travel distribution are emerging and some travel suppliers are seeking alternative distribution models, which may adversely affect the results of operations of our Travel Distribution segment. Adverse changes in, or interruptions to, our relationships with travel suppliers could affect our access to travel offerings and reduce the revenues of our Travel Distribution segment. The high level of competition in the vehicle rental industry may lead to reduced rental volumes, downward pricing, or an inability to increase our prices, which could have a material adverse impact on the results of operations for our vehicle rental business. We face risks of increased fleet costs, both generally and due to the possibility that automobile manufacturers could change or cease their repurchase programs.

Full 10-K form ▸

723612--3/1/2006--CENDANT_CORP