America Online 2014 Annual Report Download - page 44

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• additional operating losses and expenses of the businesses we acquire or in which we invest and the
failure of such businesses to perform as expected;
• the failure to successfully further develop acquired technology, resulting in the impairment of amounts
currently capitalized as intangible assets;
• the difficulty of reconciling potentially conflicting or overlapping contractual rights and duties; and
• the potential impairment of relationships with consumers, partners and employees as a result of the
combination of acquired operations and new management personnel.
We face risks relating to doing business internationally that could adversely affect our business.
Our business operates and serves consumers globally. There are certain risks inherent in doing business
internationally, including:
• economic volatility and global economic uncertainty;
• currency exchange rate fluctuations;
• the requirements of local laws and customs relating to the publication and distribution of content and
the display and sale of advertising;
• uncertain protection and enforcement of our investment or intellectual property rights;
• import or export restrictions and changes in trade regulations;
• difficulties in developing, staffing and simultaneously managing a large number of foreign operations
as a result of distance as well as language and cultural differences;
• issues related to occupational safety and adherence to local labor laws and regulations;
• political or social unrest;
• risks related to government regulation;
• the existence in some countries of statutory stockholder minority rights and restrictions on foreign
direct ownership;
• the presence of corruption in certain countries; and
• higher than anticipated costs of entry.
One or more of these factors could adversely affect our business.
International expansion involves increased investment as well as risks associated with doing business
abroad, as described above. In certain instances, we have expanded internationally through joint ventures, and
our inability to control certain aspects of a joint venture partnership may impact the development and expansion
of our offerings. Furthermore, investments in some regions can take a long period to generate an adequate return.
In addition, as we expand into new international regions, we may have limited experience in operating and
marketing our products and services in such regions and could be at a disadvantage compared to competitors with
more experience.
We could be subject to additional tax liabilities which could adversely affect our business.
International, federal, state and local tax laws and regulations affecting our business are extremely complex
and subject to varying interpretations. These tax laws and regulations, or interpretations or application of these
tax laws and regulations, could change; or new laws and regulations affecting our business could be enacted.
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