Tyson Foods 2015 Annual Report Download - page 12
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Please find page 12 of the 2015 Tyson Foods annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Legal claims, other regulatory enforcement actions, or failure to comply with applicable legal standards or requirements could affect our product sales,
reputation and profitability.
Weoperateinahighlyregulatedenvironmentwithconstantlyevolvinglegalandregulatoryframeworks.Consequently,wearesubjecttoheightenedriskoflegal
claimsorotherregulatoryenforcementactions.Althoughwehaveimplementedpoliciesandproceduresdesignedtoensurecompliancewithexistinglawsand
regulations,therecanbenoassurancethatouremployees,contractors,oragentswillnotviolateourpoliciesandprocedures.Moreover,afailuretomaintain
effectivecontrolprocessescouldleadtoviolations,unintentionalorotherwise,oflawsandregulations.Legalclaimsorregulatoryenforcementactionsarisingout
ofourfailureorallegedfailuretocomplywithapplicablelawsandregulationscouldsubjectustocivilandcriminalpenaltiesthatcouldmateriallyandadversely
affectourproductsales,reputation,financialconditionandresultsofoperations.Lossoforfailuretoobtainnecessarypermitsandregistrationscoulddelayor
preventusfrommeetingcurrentproductdemand,introducingnewproducts,buildingnewfacilitiesoracquiringnewbusinessesandcouldadverselyaffect
operatingresults.
The Company is subject to stringent environmental regulation and potentially subject to environmental litigation, proceedings, and investigations.
Ourpastandpresentbusinessoperationsandownershipandoperationofrealpropertyaresubjecttostringentfederal,state,andlocalenvironmentallawsand
regulationspertainingtothedischargeofmaterialsintotheenvironment,andthehandlinganddispositionofwastes(includingsolidandhazardouswastes)or
otherwiserelatingtoprotectionoftheenvironment.Compliancewiththeselawsandregulations,andtheabilitytocomplywithanymodificationstotheselaws
andregulations,ismaterialtoourbusiness.Newmattersorsitesmaybeidentifiedinthefuturethatwillrequireadditionalinvestigation,assessment,or
expenditures.Inaddition,someofourfacilitieshavebeeninoperationformanyyearsand,overtime,weandotherprioroperatorsofthesefacilitiesmayhave
generatedanddisposedofwastesthatnowmaybeconsideredhazardous.Futurediscoveryofcontaminationofpropertyunderlyingorinthevicinityofourpresent
orformerpropertiesormanufacturingfacilitiesand/orwastedisposalsitescouldrequireustoincuradditionalexpenses.Theoccurrenceofanyoftheseevents,the
implementationofnewlawsandregulations,orstricterinterpretationofexistinglawsorregulations,couldadverselyaffectourfinancialresults.
Failures or security breaches of our information technology systems could disrupt our operations and negatively impact our business.
Informationtechnologyisanimportantpartofourbusinessoperationsandweincreasinglyrelyoninformationtechnologysystemstomanagebusinessdataand
increaseefficienciesinourproductionanddistributionfacilitiesandinventorymanagementprocesses.Wealsouseinformationtechnologytoprocessfinancial
informationandresultsofoperationsforinternalreportingpurposesandtocomplywithregulatory,legalandtaxrequirements.Inaddition,wedependon
informationtechnologyfordigitalmarketingandelectroniccommunicationsbetweenourfacilities,personnel,customersandsuppliers.Likeothercompanies,our
informationtechnologysystemsmaybevulnerabletoavarietyofinterruptions,includingduringtheprocessofupgradingorreplacingsoftware,databasesor
componentsthereof,naturaldisasters,terroristattacks,telecommunicationsfailures,computerviruses,cyber-attacks,hackers,unauthorizedaccessattemptsand
othersecurityissues.Wehaveimplementedtechnologysecurityinitiativesanddisasterrecoveryplanstomitigateourexposuretotheserisks,butthesemeasures
maynotbeadequate.Anysignificantfailureofoursystems,includingfailuresthatpreventoursystemsfromfunctioningasintended,couldcausetransaction
errors,processinginefficiencies,lossofcustomersandsales,havenegativeconsequencesonouremployeesandourbusinesspartnersandhaveanegativeimpact
onouroperationsorbusinessreputation.
Inaddition,ifweareunabletopreventsecuritybreaches,wemaysufferfinancialandreputationaldamageorpenaltiesbecauseoftheunauthorizeddisclosureof
confidentialinformationbelongingtousortoourpartners,customers,consumersorsuppliers.Inaddition,thedisclosureofnon-publicsensitiveinformation
throughexternalmediachannelscouldleadtothelossofintellectualpropertyordamageourreputationandbrandimage.
If we pursue strategic acquisitions or divestitures, we may not be able to successfully consummate favorable transactions or successfully integrate
acquired businesses.
Weperiodicallyevaluatepotentialacquisitions,jointventuresandotherinitiatives,andmayseektoexpandourbusinessthroughtheacquisitionofcompanies,
processingplants,technologies,productsandservices.Acquisitionsandjointventuresinvolvefinancialandoperationalrisksanduncertainties,including:
•challengesinrealizingtheanticipatedbenefitsofthetransaction;
• difficultyintegratingacquiredbusinesses,technologies,operationsandpersonnelwithourexistingbusiness;
• diversionofmanagementattentioninconnectionwithnegotiatingtransactionsandintegratingthebusinessesacquired;
•difficultyidentifyingsuitablecandidatesorconsummatingatransactionontermsthatarefavorabletous;
• challengesinretainingtheacquiredbusinesses'customersandkeyemployees;
• inabilitytoimplementandmaintainconsistentstandards,controls,proceduresandinformationsystems;
• exposuretounforeseenorundisclosedliabilitiesofacquiredcompanies;and
• theavailabilityandtermsofadditionaldebtorequityfinancingforanytransaction.
Wemaynotbeabletoaddresstheserisksandsuccessfullydeveloptheseacquiredcompaniesorbusinessesintoprofitableunits.Ifweareunabletodothis,such
expansioncouldadverselyaffectourfinancialresults.
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