delays could adversely affect our sales, customer
satisfaction, profitability, cash flows and financial condition.
* * *
We rely upon several key suppliers and third parties
that are, in some instances, the only source of supply or
services currently used by us for particular materials,
components, products or services. A disruption in the
supply or substantial increase in cost of any of these
products or services could harm our sales, profitability, cash
flows and financial condition.
. . . In several cases, including our air chambers,
integrated non-adjustable foundations, adjustable
foundations, various components for our Firmness Control
systems, certain foam formulations, as well as our fabrics
and zippers, we have chosen to obtain these materials,
components and products from suppliers who serve as the
only source of supply, or who supply the vast majority of
our needs of the particular material, component or product.
While we believe that these materials, components and
products, or suitable replacements, could be obtained from
other sources in the event of a disruption or loss of supply,
we may not be able to find alternative sources of supply or
alternative sources of supply on comparable terms.
* * *
Our operations and those of our suppliers are located
in various regions of the U.S. and across the globe, which
subjects us to regional risks, such as adverse weather
conditions and other natural or man-made disasters.
The locations where we and our suppliers operate
have experienced, and may experience in the future, adverse
regional events such as extreme weather conditions and
other natural and man-made disasters, which could have a
material adverse effect on us and our ability to source
necessary materials, components and products. . . . The
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CASE 0:21-cv-02669-PJS-DTS Doc. 81 Filed 07/10/23 Page 8 of 30