Sara Lee 2013 Annual Report Download - page 31

The Hillshire Brands Company 29
Reporting Amounts Reclassified Out of Accumulated Other
Comprehensive Income In February 2013, the FASB issued an
accounting standards update that requires companies to disclose any
significant amounts reclassified from each component of accumu-
lated other comprehensive income and the income statement line
items affected by the reclassification. This disclosure can be made
either parenthetically on the face of the income statement or in the
notes to the financial statements. This amendment is effective for
the company beginning in the first quarter of fiscal 2014. This
amendment does not have an impact on our consolidated results
of operations, financial position or cash flows.
Presentation of Unrecognized Tax Benefits In July 2013, the
FASB issued an accounting standard to clarify the presentation of
unrecognized tax benefits when a net operating loss carryforward,
a similar tax loss, or a tax credit carryforward exists to address
issues with diversity in practice. The standard states that, with
limited exceptions, the unrecognized tax benefit should be presented
in the financial statements as a reduction to a deferred tax asset.
While the standard is effective for fiscal years, and interim periods
within those years, beginning after December 15, 2014, the com-
pany has historically presented such information in accordance with
the newly issued guidance. As such, there will be no impact to the
financial statements as a result of the issuance of this amendment.
FORWARD-LOOKING INFORMATION
This document contains forward-looking statements regarding
Hillshire Brands’ business prospects and future financial results
and metrics. In addition, from time to time, in oral statements and
written reports, the company discusses its expectations regarding
the company’s future performance by making forward-looking state-
ments preceded by terms such as will, anticipates, intends, expects,
likely or believes. These forward-looking statements are based on
currently available competitive, financial and economic data and
management’s views and assumptions regarding future events and
are inherently uncertain.
Investors must recognize that actual results may differ from
those expressed or implied in the forward-looking statements, and
the company wishes to caution readers not to place undue reliance
on any forward-looking statements. Among the factors that could
cause Hillshire Brands’ actual results to differ from such forward-
looking statements are those described under Item 1A, Risk Factors
in Hillshire Brands’ most recent Annual Report on Form 10-K and
other SEC Filings, as well as factors relating to:
• The consumer marketplace, such as (i) intense competition,
including advertising, promotional and price competition; (ii)
changes in consumer behavior due to economic conditions, such as
a shift in consumer demand toward private label; (iii) fluctuations
in raw material costs, Hillshire Brands’ ability to increase or main-
tain product prices in response to cost fluctuations and the impact
on profitability; (iv) the impact of various food safety issues and
regulations on sales and profitability of Hillshire Brands products;
and (v) inherent risks in the marketplace associated with product
innovations, including uncertainties related to execution and trade
and consumer acceptance;
• Hillshire Brands’ relationship with its customers, such as (i) a
significant change in Hillshire Brands’ business with any of its major
customers, such as Wal-Mart, its largest customer; and (ii) credit
and other business risks associated with customers operating in a
highly competitive retail environment;
• Hillshire Brands’ spin-off of its international coffee and tea
business in June 2012, including potential tax liabilities and other
indemnification obligations; and
• Other factors, such as (i) Hillshire Brands’ ability to generate
margin improvement through cost reduction and productivity
improvement initiatives; (ii) Hillshire Brands’ credit ratings, the
impact of Hillshire Brands’ capital plans on such credit ratings and
the impact these ratings and changes in these ratings may have on
Hillshire Brands’ cost to borrow funds and access to capital/debt
markets; and (iii) the settlement of a number of ongoing reviews of
Hillshire Brands’ income tax filing positions and inherent uncertainties
related to the interpretation of tax regulations in the jurisdictions
in which Hillshire Brands transacts business.
In addition, Hillshire Brands’ results may also be affected by
general factors, such as economic conditions, political developments,
interest and inflation rates, accounting standards, taxes and laws
and regulations in markets where the company competes. Hillshire
Brands undertakes no obligation to publicly update any forward-
looking statements, whether as a result of new information, future
events or otherwise.