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the redemption and repayment features of the Notes to be sold; and
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the time remaining to maturity of your Notes.
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As a result, you may not be able to sell your Notes at the price you paid for them. Additionally, as market interest rates rise, debt
securities will generally decline in value as the premium, if any, over market interest rates decreases. Consequently, if you purchase Notes and market interest rates increase, the market value of your Notes may decline.
Risks Relating to Industry Conditions
Changes in the cost or availability of raw materials, energy and transportation could affect our profitability.
We rely heavily on the use of certain raw materials (principally virgin wood fiber, recycled fiber, caustic soda and starch), energy sources
(principally biomass, natural gas, electricity and fuel oil) and third-party companies that transport our goods. The market price of virgin wood fiber varies based upon availability and source. The global supply and demand for recycled fiber may be
affected by trade policies between countries, individual governments legislation and regulations, as well as changes in the global economy. In addition, the increase in demand of products manufactured, in whole or in part, from recycled fiber,
on a global basis, may cause occasional significant fluctuations in recycled fiber prices. Energy prices, in particular prices for oil and natural gas, have fluctuated dramatically in the past and may continue to fluctuate in the future. The
availability of labor and the market price for diesel fuel may affect our costs for third-party transportation. Our profitability has been, and will continue to be, affected by changes in the costs and availability of such raw materials, energy
sources and transportation sources.
The industries in which we operate experience both economic cyclicality and changes in consumer
preferences. Fluctuations in the prices of, and the demand for, our products could materially affect our financial condition, results of operations and cash flows.
Substantially all of our businesses have experienced, and are likely to continue to experience, cycles relating to industry capacity and
general economic conditions. The length and magnitude of these cycles have varied over time and by product. In addition, changes in consumer preferences may increase or decrease the demand for our fiber-based products and
non-fiber
substitutes. These consumer preferences affect the prices of our products. Consequently, our financial results are sensitive to changes in the pricing and demand for our products.
Competition in the United States and internationally could negatively impact our financial results.
We operate in a competitive environment, both in the United States and internationally, in all of our operating segments. Product innovations,
manufacturing and operating efficiencies, and marketing, distribution and pricing strategies pursued or achieved by competitors could negatively impact our financial results.
Risks Relating to Market and Economic Factors
Adverse developments in general business and economic conditions could have an adverse effect on the demand for our products and our
financial condition and results of operation.
General economic conditions may adversely affect industrial
non-durable
goods production, consumer spending, commercial printing and advertising activity, white-collar employment levels and consumer confidence, all of which impact demand for our products. In addition,
volatility in the capital and credit markets, which impacts interest rates, currency exchange rates and the availability of credit, could have a material adverse effect on our business, financial condition and our results of operations.
Changes in international conditions could adversely affect our business and results of operations.
Our operating results and business prospects could be substantially affected by risks related to the countries outside the United States in
which we have manufacturing facilities or sell our products. Specifically, Russia,
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