Kroger 2010 Annual Report Download - page 110

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A-30
•฀ Adverse฀weather฀conditions฀could฀increase฀the฀cost฀our฀suppliers฀charge฀for฀their฀products,฀or฀may฀
decrease customer demand for certain products. Increases in demand for certain commodities
could also increase the cost our suppliers charge for their products. Additionally, increases in the
cost of inputs, such as utility costs or raw material costs, could negatively affect financial ratios and
earnings.
•฀ Although฀we฀presently฀operate฀only฀in฀the฀United฀States,฀civil฀unrest฀in฀foreign฀countries฀in฀which฀
our suppliers do business may affect the prices we are charged for imported goods. If we are unable
to pass on these increases to our customers, our FIFO gross margin and net earnings would suffer.
•฀ Earnings฀and฀sales฀also฀may฀be฀affected฀by฀adverse฀weather฀conditions,฀particularly฀to฀the฀extent฀that฀
hurricanes, tornadoes, floods, earthquakes, and other conditions disrupt our operations or those of
our suppliers; create shortages in the availability or increases in the cost of products that we sell in
our stores or materials and ingredients we use in our manufacturing facilities; or raise the cost of
supplying energy to our various operations.
Other factors and assumptions not identified above could also cause actual results to differ materially
from those set forth in the forward-looking information. Accordingly, actual events and results may vary
significantly from those included in, contemplated or implied by forward-looking statements made by us
or our representatives.