858558--8/21/2006--READERS_DIGEST_ASSOCIATION

related topics

{operation, international, foreign}

{regulation, government, change}

{tax, income, asset}

{customer, product, revenue}

{operation, natural, condition}

{debt, indebtedness, cash}

{acquisition, growth, future}

{system, service, information}

{product, market, service}

{cost, regulation, environmental}

{cost, contract, operation}

{property, intellectual, protect}

{personnel, key, retain}

{regulation, change, law}

{condition, economic, financial}

We cannot assure you that we will attain the goals of our fiscal 2006-2008 three-year strategic plan by fiscal 2008. We may not be able to achieve the proper balance between circulation rate base and advertising revenues. Failure to efficiently manage our direct marketing initiatives or to protect the integrity of our customer databases could negatively affect our business. Changes in privacy law could adversely affect our ability to effectively market our products. Changes in privacy law could adversely affect our ability to effectively market our products. Changes in the legal and regulatory environment could increase our costs, restrict our operations and limit our marketing and other business activities. We may not be able to successfully achieve the expected benefits of acquisitions and other ventures. Our earnings and net worth could be materially and adversely affected by impairment in the carrying value of goodwill or other intangible assets. Our earnings and net worth could be materially and adversely affected by impairment in the carrying value of goodwill or other intangible assets. We operate in highly competitive industries and must launch new products to attract new and younger customers to augment and replenish our maturing customer base while maintaining the quality of existing products. We face additional risks associated with significant non-U.S. operations and we continue to expand into foreign markets. Economic weakness in the United States and abroad could negatively affect our business. Economic weakness in the United States and abroad could negatively affect our business. Currency exchange rate fluctuations could reduce our revenue and net income. Increases in postage costs or paper prices could negatively affect our results. We may not be able to obtain at favorable prices the third-party products that we sell. A failure by QSP to meet minimum purchase requirements in one of its agreements could materially and adversely affect our results of operations and financial condition. A failure by QSP to meet minimum purchase requirements in one of its agreements could materially and adversely affect our results of operations and financial condition. We may not be able to retain or attract the key management, creative, editorial, marketing and sales personnel that we need to remain competitive and grow. Increases in sales or other taxes could reduce our revenues. Events that are beyond our control may disrupt the marketing and promotion and delivery of our products and services. Events that are beyond our control may disrupt the marketing and promotion and delivery of our products and services. Our businesses are largely seasonal and could be significantly unfavorably affected by adverse events during the principal selling season. We may not be able to adequately protect our intellectual property, our brand and our reputation. Our substantial indebtedness, and the potential for increased indebtedness, could adversely affect our financial condition, which could adversely affect our liquidity and results of operations. Restrictive covenants in our credit facilities and the indenture governing our Senior Unsecured Notes may restrict our ability to pursue our business strategies. Significant changes in pension fund investment performance or assumptions relating to pension costs may have a material effect on the valuation of pension obligations, the funded status of pension plans and our pension cost.

Full 10-K form ▸

858558--8/21/2006--READERS_DIGEST_ASSOCIATION_INC