789073--3/9/2006--FORTUNE_BRANDS

related topics

{product, market, service}

{operation, international, foreign}

{condition, economic, financial}

{financial, litigation, operation}

{cost, operation, labor}

{customer, product, revenue}

{property, intellectual, protect}

{regulation, change, law}

{tax, income, asset}

{personnel, key, retain}

{capital, credit, financial}

{competitive, industry, competition}

{acquisition, growth, future}

We operate in highly competitive markets. Continued consolidation of our trade customers and increased competition in private-label products, particularly in the home hardware industry, could adversely affect our business. Our financial results and demand for our products are dependent on the successful development of new products and processes. The inability to secure and maintain rights to intellectual property could adversely affect our business. Risks associated with our strategic acquisitions could adversely affect our business. Our failure to attract and retain qualified personnel would adversely affect our business. Various external conditions, including economic, weather and business conditions may result in a decrease in our sales and profitability. We sell products internationally and are exposed to currency exchange rate risks. We manufacture and source our products internationally and are exposed to risks associated with doing business globally. Risks associated with interest rate fluctuations and commodity and energy price volatility could adversely affect our business. Costs of certain employee and retiree benefits may continue to rise. Our Spirits and Wine business relies on the performance of wholesale distributors and other marketing arrangements and could be adversely affected by poor performance of major distributors or other disruptions in our distribution channels. Increased excise taxes on distilled spirits and wine could adversely affect our Spirits and Wine business. Changes in golf equipment regulatory standards could adversely affect our Golf business. Potential liabilities and costs from litigation could adversely affect our business. An impairment in the carrying value of goodwill or other acquired intangibles could negatively affect our operating results and net worth. Historical financial statements may not be reflective of our future financial condition and results of operation due to our recent portfolio realignment or other reasons. Downgrades of our credit ratings could adversely affect us.

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789073--3/9/2006--FORTUNE_BRANDS_INC