factors described under one heading below may apply to more than one section in which we have grouped them for the purpose of this presentation. As a result, you should consider all of the following factors, together with all of the other information presented herein, in evaluating the business of the Company and our subsidiaries. HRG and its Subsidiaries HRG’s and its subsidiaries’ actual results or other outcomes may differ from those expressed or implied by forward-looking statements contained herein due to a variety of important factors, including, without limitation, the following:
| | • | our dependence on distributions from our subsidiaries to fund our operations and payments on our debt and other obligations; |
| | • | the decision of our subsidiaries’ boards to make upstream cash distributions, which is subject to numerous factors such as restrictions contained in applicable financing agreements, state and regulatory restrictions and other relevant considerations as determined by the applicable board; |
| | • | our and our subsidiaries’ liquidity, which may be impacted by a variety of factors, including the capital needs of us and our current and future subsidiaries; |
| | • | limitations on our ability to successfully identify suitable acquisition, disposition and other strategic opportunities and to compete for these opportunities with others who have greater resources; |
| | • | the need to provide sufficient capital to our operating businesses; |
| | • | the impact of covenants in the indenture governing our 7.875% Senior Secured Notes due 2019, the covenants in the indenture governing our 7.750% Senior Notes due 2022, the continuing covenants contained in the certificate of designation governing our Series A Participating Convertible Preferred Stock and future financing or refinancing agreements, on our ability to operate our business and finance our pursuit of our business strategy; |
| | • | our ability to incur new debt and refinance our existing indebtedness; |
| | • | the impact on our business and financial condition of our substantial indebtedness and the significant additional indebtedness and other financing obligations we and our subsidiaries may incur; |
| | • | the impact on the aggregate value of our assets and our stock price from changes in the market prices of publicly traded equity interests we hold, particularly during times of volatility in security prices; |
| | • | the impact of additional material charges associated with our oversight of acquired or target businesses and the integration of our financial reporting; |
| | • | the impact of restrictive covenants and applicable laws, including securities laws, on our ability to dispose of equity interests we hold; |
| | • | the impact of decisions by our significant stockholders, whose interest may differ from those of our other stockholders, or any of them ceasing to remain significant stockholders; |
| | • | the effect any interests of our officers, directors, stockholders and their respective affiliates may have in certain transactions in which we are involved; |
| | • | our dependence on certain key personnel; |
| | • | the impact on us and/or our subsidiaries from interruption or other operational failures in telecommunication, information technology and other operational systems, or a failure to maintain the security, integrity confidentiality or privacy of sensitive data residing on such systems; |
| | • | our and our subsidiaries’ ability to attract and retain key employees; |
| | • | the impact of potential losses and other risks from changes in the value of our assets; |
| | • | our ability to effectively increase the size of our organization, if needed, and manage our growth; |
| | • | the impact of a determination that we are an investment company or personal holding company; |
| | • | the impact of claims or litigation arising from operations, agreements and transactions, including litigation arising from or involving former subsidiaries; |
| | • | the impact of expending significant resources in considering acquisition or disposition targets or business opportunities that are not consummated; |
| | • | our ability to successfully integrate current and future acquired businesses into our existing operations and achieve the expected economic benefits; |
| | • | tax consequences associated with our acquisition, holding and disposition of target companies and assets; |
| | • | the impact of delays or difficulty in satisfying the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 or negative reports concerning our internal controls; |
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