Home
Jump to Risk Factors
Jump to Industries
Jump to Exposures
Jump to Event Codes
Jump to Wiki Summary

Industries
Asset Management and Custody Banks
Technology Hardware Storage and Peripherals
Information Technology
Technology Hardware and Equipment
Automobile Manufacturers
Motorcycle Manufacturers
Home Entertainment Software
Advertising
Homebuilding

Exposures
Military
Intelligence
Leadership
Cooperate
Ease
Express intent
Provide
Rights
Crime
Judicial
Political reform

Event Codes
Solicit support
Host meeting
Force
Acknowledge responsibility
Yield
Agree
Psychological state
Sports contest
Human death
Endorse
Yield to order
Reject
Covert monitoring
Demand
Warn
Accuse

Wiki	Wiki Summary
Operation Mincemeat	Operation Mincemeat was a successful British deception operation of the Second World War to disguise the 1943 Allied invasion of Sicily. Two members of British intelligence obtained the body of Glyndwr Michael, a tramp who died from eating rat poison, dressed him as an officer of the Royal Marines and placed personal items on him identifying him as the fictitious Captain (Acting Major) William Martin.
Special Activities Center	The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015.
Operations management	Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Emergency operations center	An emergency operations center (EOC) is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision or other organization.\nAn EOC is responsible for strategic direction and operational decisions and does not normally directly control field assets, instead leaving tactical decisions to lower commands.
Bitwise operation	In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Adverse effect	An adverse effect is an undesired harmful effect resulting from a medication or other intervention, such as surgery. An adverse effect may be termed a "side effect", when judged to be secondary to a main or therapeutic effect.
Adverse possession	Adverse possession, sometimes colloquially described as "squatter's rights", is a legal principle in the Anglo-American common law under which a person who does not have legal title to a piece of property—usually land (real property)—may acquire legal ownership based on continuous possession or occupation of the property without the permission (licence) of its legal owner. The possession by a person is not adverse if they are in possession as a tenant or licensee of the legal owner.
Adverse party	An adverse party is an opposing party in a lawsuit under an adversary system of law. In general, an adverse party is a party against whom judgment is sought or "a party interested in sustaining a judgment or decree." For example, the adverse party for a defendant is the plaintiff.
Technology acceptance model	The technology acceptance model (TAM) is an information systems theory that models how users come to accept and use a technology. \nThe actual system use is the end-point where people use the technology.
Lawsuit	A lawsuit is a proceeding by a party or parties against another in the civil court of law. The archaic term "suit in law" is found in only a small number of laws still in effect today.
The Day the Music Died	On February 3, 1959, American rock and roll musicians Buddy Holly, Ritchie Valens, and "The Big Bopper" J. P. Richardson were killed in a plane crash near Clear Lake, Iowa, together with pilot Roger Peterson. The event later became known as "The Day the Music Died" after singer-songwriter Don McLean referred to it as such in his 1971 song "American Pie".
Intellectual property	Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others.
Misophonia	Misophonia is a disorder of decreased tolerance to specific sounds or their associated stimuli that has been characterized using different language and methodologies. Reactions to trigger sounds range from anger and annoyance to activating a fight-or-flight response.
Indigenous intellectual property	Indigenous intellectual property is a term used in national and international forums to describe intellectual property that is "collectively owned" by various Indigenous peoples, and by extension, their legal rights to protect specific such property. This property includes cultural knowledge of their groups and many aspects of their cultural heritage and knowledge, including that held in oral history.
TRIPS Agreement	The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO). It establishes minimum standards for the regulation by national governments of different forms of intellectual property (IP) as applied to nationals of other WTO member nations.
Intellectual property in China	Intellectual property rights (IPRs) have been acknowledged and protected in China since the 1980s. China has acceded to the major international conventions on protection of rights to intellectual property.
Prenuptial agreement	A prenuptial agreement, antenuptial agreement, or premarital agreement (commonly referred to as a prenup), is a written contract entered into by a couple prior to marriage or a civil union that enables them to select and control many of the legal rights they acquire upon marrying, and what happens when their marriage eventually ends by death or divorce. Couples enter into a written prenuptial agreement to supersede many of the default marital laws that would otherwise apply in the event of divorce, such as the laws that govern the division of property, retirement benefits, savings, and the right to seek alimony (spousal support) with agreed-upon terms that provide certainty and clarify their marital rights.
Merchandising	Merchandising is any practice which contributes to the sale of products to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative way that entices customers to purchase more items or products.
Carbonated water	Carbonated water (also known as soda water, sparkling water, fizzy water, club soda, water with gas, in many places as mineral water or (especially in the U.S.) as seltzer or seltzer water) is water containing dissolved carbon dioxide gas, either artificially injected under pressure or occurring due to natural geological processes. Carbonation causes small bubbles to form, giving the water an effervescent quality.
Conflict of interest	A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations in which the personal interest of an individual or organization might adversely affect a duty owed to make decisions for the benefit of a third party.
Gordon v. Virtumundo, Inc.	Gordon v. Virtumundo, Inc., 575 F.3d 1040, is a 2009 court opinion in which the United States Court of Appeals for the Ninth Circuit addressed the standing requirements necessary for private plaintiffs to bring suit under the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, or CAN-SPAM Act of 2003, 15 U.S.C. ch.
1997 Asian financial crisis	The Asian financial crisis was a period of financial crisis that gripped much of East Asia and Southeast Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion. However, the recovery in 1998–1999 was rapid and worries of a meltdown subsided.
2002 United States steel tariff	On March 5, 2002, U.S. President George W. Bush placed tariffs on imported steel. The tariffs took effect March 20 and were lifted by Bush on December 4, 2003.
Visual merchandising	Visual Merchandising is the practice in the retail industry of optimizing the presentation of products and services to better highlight their features and benefits. The purpose of such visual merchandising is to attract, engage, and motivate the customer towards making a purchase.Visual merchandising traditionally occurs in brick and mortar stores using a blend of lighting, color combinations, and articles of decor to stimulate an observer and generate interest.
EMP Merchandising	EMP Merchandising also known as EMP Merchandising Handelsgesellschaft mbH, Large Popmerchandising and Sweden Rock Shop is a German-based music mail order and merchandising store. The "E.M.P." abbreviation stands for Exclusive Merchandise Products.
Service Merchandise	Service Merchandise was a retail chain of catalog showrooms carrying jewelry, toys, sporting goods, and electronics. The company, which first began in 1934 as a five-and-dime store, was in existence for 68 years before ceasing operations in 2002.
Fashion Institute of Design & Merchandising	The Fashion Institute of Design & Merchandising (FIDM) is a private for-profit college with multiple campuses in California. It offers degree programs in majors including fashion, entertainment, beauty, interior design, and graphic design.
Financial condition report	In accounting, a financial condition report (FCR) is a report on the solvency condition of an insurance company that takes into account both the current financial status, as reflected in the balance sheet, and an assessment of the ability of the company to survive future risk scenarios. Risk assessment in an FCR involves dynamic solvency testing, a type of dynamic financial analysis that simulates management response to risk scenarios, to test whether a company could remain solvent in the face of deteriorating economic conditions or major disasters.
Balance sheet	In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
2018 in American television	The following is a list of events affecting American television in 2018. Events listed include television show finales and cancellations and information about controversies and carriage disputes.
Television	Television, sometimes shortened to TV or telly, is a telecommunication medium used for transmitting moving images and sound. The term can refer to a television set, a television show, or the medium of television transmission.
2017 in American television	The following is a list of events affecting American television in 2017. Events listed include television show debuts, finales, and cancellations; channel launches, closures, and re-brandings; stations changing or adding their network affiliations; and information about controversies and carriage disputes.
Television presenter	A television presenter (or television host, some become a "television personality") is a person who introduces or hosts television programs, often serving as a mediator for the program and the audience. Nowadays, it is common for people who garnered fame in other fields to take on this role, but some people have made their name solely within the field of presenting—such as children's television series or infomercials—to become television personalities.
Before 1925 in television	This is a list of television-related events that occurred prior to 1925.
Lists of United States network television schedules	This article gives a list of United States network television schedules including prime time (since 1946), daytime (since 1947), late night (since 1950) and overnight (since 2020). The variously three to five larger commercial U.S. television networks each has its schedule.
Reality television	Reality television is a genre of television programming that documents purportedly unscripted real-life situations, often starring unfamiliar people rather than professional actors. Reality television emerged as a distinct genre in the early 1990s with shows such as The Real World, then achieved prominence in the early 2000s with the success of the series Survivor, Idols, and Big Brother, all of which became global franchises.
Television film	A television film (normally referred to as a television movie, made-for-TV movie, or TV movie) is a feature-length motion picture that is produced and originally distributed by or to a television network, in contrast to theatrical films made explicitly for initial showing in movie theaters. Television films can also be referred to and can also be shown as a miniseries, television film shown in a miniseries format in a limited number of episodes too.

Risk Factors
MARTHA STEWART LIVING OMNIMEDIA INC Item 1A Risk Factors
A wide range of factors could materially affect our performance
In addition to the factors affecting specific business operations identified in connection with the description of these operations and the financial results of these operations elsewhere in this report, the following factors, among others, could adversely affect our operations: Our success depends in part on the popularity of our brand and the reputation and popularity of our founder, Martha Stewart
The value of our brand may diminish if the popularity of Ms
Adverse reactions to publicity relating to Ms
Stewart, or the loss of her services, could adversely affect our revenues, results of operations and our ability to maintain or generate a consumer base
While we believe there has been significant consumer acceptance for our products as a stand-alone brand, the image, reputation, popularity and talent of Martha Stewart remain important factors
Stewart’s efforts, personality and leadership have been, and continue to be, critical to our success
While the Company has managed its business without her daily participation, the repeated diminution or loss of her services due to disability, death or some other cause, or any repeated or sustained shifts in public or industry perceptions of her, could have a material adverse effect on our business
Stewart was found guilty of conspiracy, obstruction of an agency proceeding, and making false statements to federal investigators concerning her personal sale of non-Company stock
Stewart was sentenced to five months in prison and two years of supervised release, including five months of home confinement
Stewart has completed her prison term and home confinement
In connection with those same events, the SEC filed a civil complaint against Ms
Stewart in the United States District Court for the Southern District of New York alleging violations of federal securities law
We cannot predict what effect, if any, the impending SEC action may have on Ms
Stewart’s personal reputation and the Company’s business or prospects
9 _________________________________________________________________ [42]Table of Contents If we are unable to predict, respond to and influence trends in what the public finds appealing, our business will be adversely affected
Our continued success depends on our ability to provide creative, useful and attractive ideas, information, concepts, programming and products, which strongly appeal to a large number of homemakers and other consumers
In order to accomplish this, we must be able to respond quickly and effectively to changes in consumer tastes for ideas, information, concepts and products
The strength of our brand name and our business units depends in part on our ability to influence these tastes through broadcasting, publishing, merchandising and the Internet
We cannot be sure that our new ideas and content will have the appeal and garner the acceptance that they have in the past, or that we will be able to respond quickly to changes in the tastes of homemakers and other consumers
In addition, we cannot be sure that our existing ideas and content will continue to appeal to the public
Martha Stewart controls our company through her stock ownership, enabling her to elect who sits on our board of directors, and potentially to block matters requiring stockholder approval, including any potential changes of control
Stewart controls all of our outstanding shares of Class B common stock, representing approximately 92prca of our voting power
The Class B common stock has ten votes per share, while Class A common stock, which is the stock available to the public, has one vote per share
Stewart has a disproportionately influential vote
Stewart has the ability to control unilaterally the outcome of all matters requiring stockholder approval, including the election and removal of our entire board of directors and any merger, consolidation or sale of all or substantially all of our assets, and the ability to control our management and affairs
This concentrated control could, among other things, discourage others from initiating any potential merger, takeover or other change of control transaction that may otherwise be beneficial to our businesses
Our intellectual property may be infringed upon or others may accuse us of infringing on their intellectual property, either of which could adversely affect our business and result in very expensive litigation
Our business is highly dependent upon our creativity and resulting intellectual property
We are also susceptible to others imitating our products and infringing our intellectual property rights
We may not be able to successfully protect our intellectual property rights, upon which we are materially dependent
In addition, the laws of many foreign countries do not protect intellectual property rights to the same extent as do the laws of the United States
Imitation of our products or infringement of our intellectual property rights could diminish the value of our brands or otherwise adversely affect our revenues
If we are alleged to have infringed the intellectual property rights of another party, any resulting litigation could be costly, affecting our finances and our reputation
Litigation also diverts the time and resources of management, regardless of the merits of the claim
There can be no assurance that we would prevail in any litigation relating to our intellectual property
If we were to lose such a case, and be required to cease the sale of certain products or the use of certain technology or were forced to pay monetary damages, the results could adversely affect our business
Termination of our licensing agreement with Kmart relating to Martha Stewart Everyday products could adversely affect our revenues and results of operations
In 2005, we received approximately 89prca of our merchandising revenues from our licensing agreement with Kmart
This agreement provides Kmart with the right in the United States and its territories during the term to use the trademark Martha Stewart Everyday in connection with a variety of products designed by us and sold by Kmart
On April 22, 2004, we reached an agreement with Kmart to amend the terms of our contract and executed certain releases with respect to a legal action Kmart filed against us on February 11, 2004
The amendment, among other things, extended the Kmart contract for an additional two years and expanded the scope of the contract to cover several new product categories
At the same time, the amendment eliminated provisions of the contract providing for payment of guaranteed minimum royalties by individual product category and reduced the amount Kmart is obligated under the contract to spend with us on advertising in our various media properties
The amendment also reduced the aggregate minimum royalty payments
The aggregate minimum royalty payment for the period February 1, 2004 to January 31, 2005 was reduced to dlra49dtta0 million from dlra53dtta4 million previously
Due principally to store closures (since the signing of the agreement in June 2001, Kmart has closed approximately 30prca of its stores) and lower same-store sales, we expect the minimum guarantees will significantly exceed the royalties that otherwise would be earned from actual retail sales through 2007
For the contract years ending January 31, 2009 and 2010 (the extension years), the minimum guarantees will be substantially lower than in prior years
If Kmart was unable to honor its obligations to us our business would be disrupted and our revenues and results of operations would be materially adversely affected
10 _________________________________________________________________ [43]Table of Contents We are expanding our merchandising and licensing programs into new areas and products, the failure of any of which could diminish the perceived value of our brand, impair our ability to grow and adversely affect our prospects
Our growth depends to a significant degree upon our ability to develop new or expand existing retail merchandising programs
We have entered into new merchandising and licensing agreements
Some of these agreements are exclusive and have a duration of many years
While we require that our licensees maintain the quality of our brands through specific contractual provisions, we cannot be certain that our licensees, or their manufacturers and distributors, will honor their contractual obligations or that they will not take other actions that will diminish the value of our brand name
There is also a risk that the extension of our brand into new business areas will meet with disapproval from consumers
We have limited experience in merchandising in some of these business areas
We cannot guarantee that these programs will be fully implemented, or if they will be successful when they are in place
If the licensing or merchandising programs do not succeed, we may be prohibited from seeking different channels for our products due to the exclusive nature and multi-year terms of these agreements
If these and other programs are not successful, our brand recognition, business, financial condition and prospects could be materially adversely affected
If the MARTHA daily television show fails to maintain a sufficient audience, if adverse trends develop in the television production business generally, or if Martha Stewart were to cease to be able to devote substantial time to our television business, that business would be adversely affected
Our television production business is subject to a number of uncertainties
Our business and financial condition could be adversely affected by: Failure of our television programming to maintain a sufficient audience Television production is a speculative business because revenues and income derived from television depend primarily upon the continued acceptance of that programming by the public, which is difficult to predict
Public acceptance of particular programming depends upon, among other things, the quality of that programming, the strength of stations on which that programming is broadcast, promotion of that programming, the quality and acceptance of competing television programming and other sources of entertainment and information
While the MARTHA television program has met with some initial success, if ratings were to decline, it would adversely affect the advertising revenues we derive from television and may result in the television program being broadcast on fewer stations
A ratings decline could make it economically inefficient to continue production of the program in the daily one-hour format or otherwise
If production of the television program were to cease, it could result in a writedown of our capitalized programming costs
The amount of any writedown would vary depending on a number of factors, including when production ceased and the extent to which we continued to generate revenues from the use of our existing program library
Adverse trends in the television production business generally Television revenues and income may also be affected by a number of other factors, most of which are not within our control
These factors include a general decline in broadcast television viewers, pricing pressure in the television advertising industry, strength of the stations on which our programming is broadcast, general economic conditions, increases in production costs, availability of other forms of entertainment and leisure time activities and other factors
All of these factors may quickly change, and these changes cannot be predicted with certainty
While we currently benefit from our ability to sell advertising on our television programs, if these changes occur, we can make no assurance that we will continue to be able to sell this advertising or that our advertising rates can be maintained
Our future licensing fees may also be adversely affected by these changes
Accordingly, if any of these changes were to occur, the revenues and income we generate from television programming could decline
We have placed emphasis on building our internet community
Failure to fulfill these undertakings would adversely affect our brand and business prospects
Our growth depends to a significant degree upon the development of our Internet business
We have had failures with direct commerce in the past, and only limited experience in building an internet-based community
In order for our Internet business to succeed, we must, among other things: 11 _________________________________________________________________ [44]Table of Contents • make significant investments in our Internet business, including upgrading our technology and adding a significant number of new employees; • significantly increase our online traffic and revenue; • attract and retain a base of frequent visitors to our website; • expand the content and products we offer over our website; • respond to competitive developments and maintain a distinct brand identity; • form and maintain relationships with strategic partners; and • continue to develop and upgrade our technologies
We cannot assure that we will be successful in achieving these and other necessary objectives or that our Internet business will be profitable
If we are not successful in achieving these objectives, our business, financial condition and prospects could be materially adversely affected
We are undertaking many new business ventures and expanding our business into new areas
We cannot assure that these new businesses will be successful or that the relationships through which we have entered these businesses will be successful
If we fail in any of these new businesses, or if our relationships fail, our image and business may be adversely affected
We have developed relationships with a several new strategic partners in new areas of business, including home building and crafts
We are seeking new business relationships on an on-going basis
We hope to grow our business through these relationships as we expand our product offerings
We could be materially adversely affected if these businesses do not succeed or if these business relationships were to fail before we have similar arrangements in place with other partners
Any such failure could have a material adverse affect on our financial condition and results of operations
Our business is largely dependent on advertising revenues in our publications, online operations and broadcasts
Failure to attract or retain these advertisers would have a material adverse effect on our business
We depend on advertising revenue in our publishing, broadcasting and Internet businesses
We cannot control how much or where companies choose to advertise
If advertisers decide to spend less money, or if they advertise elsewhere in lieu of our publications or broadcasts, our revenues and business would be materially adversely affected
A loss of the services of other key personnel could have a material adverse effect on our business
Our continued success depends upon the retention of our key management executives, as well as upon a number of key members of our creative staff, who have been instrumental in our success, and upon our ability to attract and retain other highly capable and creative individuals
The loss of some of our senior executives or key members of our creative staff, or an inability to attract or retain other key individuals, could materially adversely affect us
Continued growth and success in our business depends, to a large degree, on our ability to retain and attract such employees
We operate in four highly competitive businesses: Publishing, Broadcasting, Merchandising and Internet, each of which subjects us to competitive pressures
We face intense competitive pressures and uncertainties in each of our four businesses: Publishing, Broadcasting, Merchandising and Internet
We have described these competitive pressures in each of the pertinent business descriptions
Please see “Business—Publishing–Competition,” “Business—Broadcasting–Competition,”“Business—Merchandising–Competition,” and “Business—Internet–Competition” for a description of our competitive risks in the applicable business line
12 _________________________________________________________________ [45]Table of Contents We have been named as a defendant in a class action lawsuit, the effects of which cannot be known
We (together with Ms
Stewart and seven of our present or former officers) have been named as a defendant in a lawsuit alleging violations of various securities laws
While we have insurance against such claims, and, we believe, substantial defenses, we cannot predict what effect, if any, this lawsuit may have on our balance sheet, business or prospects if there