Hormel Foods 2015 Annual Report Download - page 30

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In connection with the “safe harbor” provisions of the Reform
Act, the Company is identifying risk factors that could affect
fi nancial performance and cause the Company’s actual results
to differ materially from opinions or statements expressed
with respect to future periods. The following discussion of risk
factors contains certain cautionary statements regarding the
Company’s business, which should be considered by investors
and others. Such risk factors should be considered in con-
junction with any discussions of operations or results by the
Company or its representatives, including any forward-looking
discussion, as well as comments contained in press releases,
presentations to securities analysts or investors, or other
communications by the Company.
In making these statements, the Company is not undertak-
ing, and specifi cally declines to undertake, any obligation to
address or update each or any factor in future fi lings or com-
munications regarding the Company’s business or results, and
is not undertaking to address how any of these factors may
have caused changes to discussions or information contained
in previous fi lings or communications. Though the Company
has attempted to list comprehensively these important cau-
tionary risk factors, the Company wishes to caution investors
and others that other factors may in the future prove to be
important in affecting the Company’s business or results of
operations.
The Company cautions readers not to place undue reliance on
forward-looking statements, which represent current views as
of the date made. Forward-looking statements are inherently
at risk to any changes in the national and worldwide economic
environment, which could include, among other things, eco-
nomic conditions, political developments, currency exchange
rates, interest and infl ation rates, accounting standards,
taxes, and laws and regulations affecting the Company and
its markets.
Risk Factors
The Company’s operations are subject to the general risks of
the food industry. The food products manufacturing industry
is subject to the risks posed by:
• food spoilage;
• food contamination caused by disease-producing organ-
isms or pathogens, such as Listeria monocytogenes,
Salmonella, and pathogenic E coli.;
• food allergens;
• nutritional and health-related concerns;
• federal, state, and local food processing controls;
• consumer product liability claims;
• product tampering; and
• the possible unavailability and/or expense of liability
insurance.
In addition to the commitments set forth in the above table, at
October 25, 2015, the Company had $44.1 million in standby
letters of credit issued on behalf of the Company. The standby
letters of credit are primarily related to the Company’s self-in-
sured workers compensation programs.
The Company believes its fi nancial resources, including a
revolving credit facility for $400.0 million and anticipated
funds from operations, will be adequate to meet all current
commitments.
Off-Balance Sheet Arrangements
As of October 25, 2015, the Company had $44.1 million of
standby letters of credit issued on its behalf. The standby
letters of credit are primarily related to the Company’s
self-insured workers compensation programs. However, that
amount also includes revocable standby letters of credit total-
ing $4.0 million for obligations of an affi liated party that may
arise under workers compensation claims. Letters of credit
are not refl ected in the Company’s Consolidated Statements of
Financial Position.
Forward-Looking Statements
This report contains “forward-looking” information within the
meaning of the federal securities laws. The “forward-looking”
information may include statements concerning the Company’s
outlook for the future as well as other statements of beliefs,
future plans, strategies, or anticipated events and similar
expressions concerning matters that are not historical facts.
The Private Securities Litigation Reform Act of 1995 (the
Reform Act) provides a “safe harbor” for forward-looking
statements to encourage companies to provide prospective
information. The Company is fi ling this cautionary state-
ment in connection with the Reform Act. When used in the
Company’s Annual Report to Stockholders, other fi lings by the
Company with the U.S. Securities and Exchange Commission,
the Company’s press releases, and oral statements made by
the Company’s representatives, the words or phrases “should
result,” “believe,” “intend,” “plan,” “are expected to,” “tar-
geted,” “will continue,” “will approximate,” “is anticipated,”
“estimate,” “project,” or similar expressions are intended to
identify forward-looking statements within the meaning of
the Reform Act. Such statements are subject to certain risks
and uncertainties that could cause actual results to differ
materially from historical earnings and those anticipated
or projected.