deterioration in our profitability. Additionally, closing multiple stores  could have an adverse impact on the Build-A-Bear Workshop brand  and consumer perception of our brand. We lease all of our store locations. The majority of our store leases  contain provisions for base rent plus percentage rent based on sales  in excess of an agreed upon minimum annual sales level. A number  of our leases include a termination provision which applies if we do  not meet certain sales levels during a specified period, typically in  the third to fourth year and the sixth to seventh year of the lease,  which may be at either the landlord’s options or ours. Furthermore,  some of our leases contain various restrictions relating to change of  control of our company. Our leases also subject us to risks relating to  compliance with changing mall rules and the exercise of discretion  by our landlords on various matters within the malls. We may not be  able to maintain or obtain favorable locations in desirable malls. The  terms of new leases may not be as favorable, increasing store expenses  and impacting overall profitability. If we execute termination rights,  we may have expenses and charges associated with those closures  which could negatively impact our profitability. Additionally, several  large landlords dominate the ownership of prime malls, particularly  in the United States and Canada, and because of our dependence  on these landlords for a substantial number of our locations, any  significant erosion in their financial conditions or our relationships  with these landlords could negatively affect our ability to obtain and  retain store locations. Further landlord consolidation may negatively  impact our results of operations. Our leases in the United Kingdom and Ireland also typically contain  provisions requiring rent reviews every five years in which the  base rent that we pay is adjusted to current market rates. These  rent reviews require that base rents cannot be reduced if market  conditions have deteriorated but can be changed “upwards only”.  We may be required to pay base rents that are significantly higher  than we have forecast. For example, past rent reviews have resulted  in increases as high as 30% in select locations within the United  Kingdom. As a result of these and other factors, we may not be able to  operate our European store locations profitably. If we are unable to do  so, our results of operations and financial condition could be harmed  and we may be required to record significant additional impairment  charges.  In addition, the lease for our store in the Downtown Disney ®   District  at the Disneyland ®   Resort in Anaheim, California expired in January  2014. We have not reached agreement on renewal terms and are  currently operating on a month to month basis. This lease provides  that the landlord may terminate the lease at any time. As a result,  we cannot be assured that the landlord will not exercise its right to  terminate this lease.  Although we require our manufacturers to meet our product  specifications and safety standards and submit our products for  We purchase our merchandise from domestic vendors who contract  with manufacturers in foreign countries, primarily in China. Any  event causing a disruption of imports, including the imposition of  import restrictions or labor strikes or lock-outs, could adversely  affect our business. The flow of merchandise from our vendors could  also be adversely affected by financial or political instability in any  of the countries in which the goods we purchase are manufactured,  especially China, if the instability affects the production or export  of merchandise from those countries. We are subject to trade  restrictions in the form of tariffs or quotas, or both, applicable to the  products we sell as well as to raw material imported to manufacture  those products. Such tariffs or quotas are subject to change.  Our compliance with the regulations is subject to interpretation  and review by applicable authorities. Change in regulations or  interpretation could negatively impact our operations by increasing  the cost of and reducing the supply of products available to us. In  addition, decreases in the value of the U.S. dollar against foreign  currencies, particularly the Chinese renminbi, could increase the  cost of products we purchase from overseas vendors. The pricing of  our products in our stores may also be affected by changes in foreign  currency rates and require us to make adjustments which would  impact our revenue and profit in various markets.  In our foreign operations, we face business, regulatory and  cultural differences from our domestic business, such as economic  conditions, changes in foreign government policies and regulations  and potential restrictions and costs to convert and repatriate  currency, as well as other risks that we may not anticipate. We  also face difficulties realizing benefits because we have less brand  awareness than in the U.S., face higher labor and rent costs, and have  different holiday schedules. Although we have realized benefits from  our operations in the United Kingdom and Ireland, we may be unable  to continue to do so on a consistent basis. In 2012, we recognized an  impairment charge on all of the goodwill associated with our UK  acquisition along with the store assets at certain store locations with  poor operating results. In 2010, we closed all three of our company- owned stores in France as we were unable to operate them profitably.  We may not be able to operate our foreign company-owned stores in  the United Kingdom and Ireland profitably.  If we are unable to renew, renegotiate or replace our store leases or  enter into leases for new stores on favorable terms, or if we violate  any of the terms of our current leases, our growth and profitability  could be harmed.  Our merchandise is manufactured by foreign manufacturers and  we transact business in various foreign countries; therefore the  availability and costs of our products, as well as our product pricing,  may be negatively affected by risks associated with international  manufacturing and trade and foreign currency fluctuations.  We may suffer negative publicity or be sued if the manufacturers of  our merchandise ship any products that do not meet current safety  standards or production requirements or if our products are recalled  or cause injuries.  2013 FORM 10-K 9 BUILD-A-BEAR WORKSHOP, INC. 