Tyson Foods 2015 Annual Report Download - page 7
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Please find page 7 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.CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF “SAFE HARBOR”
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certaininformationinthisreportconstitutesforward-lookingstatements.Suchforward-lookingstatementsinclude,butarenotlimitedto,currentviewsand
estimatesofouroutlookforfiscal2016,otherfutureeconomiccircumstances,industryconditionsindomesticandinternationalmarkets,ourperformanceand
financialresults(e.g.,debtlevels,returnoninvestedcapital,value-addedproductgrowth,capitalexpenditures,taxrates,accesstoforeignmarketsanddividend
policy).Theseforward-lookingstatementsaresubjecttoanumberoffactorsanduncertaintiesthatcouldcauseouractualresultsandexperiencestodiffer
materiallyfromanticipatedresultsandexpectationsexpressedinsuchforward-lookingstatements.Wewishtocautionreadersnottoplaceunduerelianceonany
forward-lookingstatements,whichspeakonlyasofthedatemade.Weundertakenoobligationtoupdateanyforward-lookingstatements,whetherasaresultof
newinformation,futureeventsorotherwise.
Amongthefactorsthatmaycauseactualresultsandexperiencestodifferfromanticipatedresultsandexpectationsexpressedinsuchforward-lookingstatements
arethefollowing:(i)theeffectof,orchangesin,generaleconomicconditions;(ii)fluctuationsinthecostandavailabilityofinputsandrawmaterials,suchaslive
cattle,liveswine,feedgrains(includingcornandsoybeanmeal)andenergy;(iii)marketconditionsforfinishedproducts,includingcompetitionfromotherglobal
anddomesticfoodprocessors,supplyandpricingofcompetingproductsandalternativeproteinsanddemandforalternativeproteins;(iv)successfulrationalization
ofexistingfacilitiesandoperatingefficienciesofthefacilities;(v)risksassociatedwithourcommoditypurchasingactivities;(vi)accesstoforeignmarkets
togetherwithforeigneconomicconditions,includingcurrencyfluctuations,import/exportrestrictionsandforeignpolitics;(vii)outbreakofalivestockdisease
(suchasavianinfluenza(AI)orbovinespongiformencephalopathy(BSE)),whichcouldhaveanadverseeffectonlivestockweown,theavailabilityoflivestock
wepurchase,consumerperceptionofcertainproteinproductsorourabilitytoaccesscertaindomesticandforeignmarkets;(viii)changesinavailabilityand
relativecostsoflaborandcontractgrowersandourabilitytomaintaingoodrelationshipswithemployees,laborunions,contractgrowersandindependent
producersprovidinguslivestock;(ix)issuesrelatedtofoodsafety,includingcostsresultingfromproductrecalls,regulatorycomplianceandanyrelatedclaimsor
litigation;(x)changesinconsumerpreferenceanddietsandourabilitytoidentifyandreacttoconsumertrends;(xi)significantmarketingplanchangesbylarge
customersorlossofoneormorelargecustomers;(xii)adverseresultsfromlitigation;(xiii)impactsonouroperationscausedbyfactorsandforcesbeyondour
control,suchasnaturaldisasters,fire,bioterrorism,pandemicsorextremeweather;(xiv)risksassociatedwithleverage,includingcostincreasesduetorising
interestratesorchangesindebtratingsoroutlook;(xv)compliancewithandchangestoregulationsandlaws(bothdomesticandforeign),includingchangesin
accountingstandards,taxlaws,environmentallaws,agriculturallawsandoccupational,healthandsafetylaws;(xvi)ourabilitytomakeeffectiveacquisitionsor
jointventuresandsuccessfullyintegratenewlyacquiredbusinessesintoexistingoperations;(xvii)failuresorsecuritybreachesofourinformationtechnology
systems;(xviii)effectivenessofadvertisingandmarketingprograms;and(xix)thosefactorslistedunderItem1A.“RiskFactors.”
ITEM 1A. RISK FACTORS
Theserisks,whichshouldbeconsideredcarefullywiththeinformationprovidedelsewhereinthisreport,couldmateriallyadverselyaffectourbusiness,financial
conditionorresultsofoperations.Additionalrisksanduncertaintiesnotcurrentlyknowntousorthatwecurrentlydeemtobeimmaterialalsomaymaterially
adverselyaffectourbusiness,financialconditionorresultsofoperations.
The integration of The Hillshire Brands Company may be more difficult, costly or time consuming than expected, and the acquisition may not result in
any or all of the anticipated benefits, including cost synergies .
ThesuccessoftheacquisitionofHillshireBrands,includingtherealizationoftheanticipatedbenefits,willdependinpartonourabilitytosuccessfullyintegrate
HillshireBrands’businessesinanefficientandeffectivemanner.Wemaynotbeabletoaccomplishthisintegrationprocesssmoothlyorsuccessfully.The
necessityofcoordinatinggeographicallyseparatedorganizations,systemsandfacilitiesandaddressingpossibledifferencesinbusinessbackgrounds,corporate
culturesandmanagementphilosophiesmayincreasethedifficultiesofintegration.Failuretoeffectivelyintegratethebusinessescouldadverselyimpactthe
expectedbenefitsoftheacquisition,includingcostsynergiesstemmingfromsupplychainefficiencies,merchandisingactivitiesandoverlappinggeneraland
administrativefunctions.
Theintegrationoftwolargecompaniesiscomplex,andwewillberequiredtodevotesignificantmanagementattentionandincursubstantialcoststointegrate
HillshireBrands’andTyson’sbusinesspractices,policies,culturesandoperations.Thisdiversionofourmanagement’sattentionfromday-to-daybusiness
operationsandtheexecutionandpursuitofstrategicplansandinitiativescouldresultinperformanceshortfalls,whichcouldadverselyimpactthecombined
company’sbusiness,operationsandfinancialresults.Theintegrationprocesscouldalsoresultinthelossofkeyemployees,whichcouldadverselyimpactthe
combinedcompany’sfuturefinancialresults.
Furthermore,duringtheintegrationplanningprocess,wemayencounteradditionalchallengesanddifficulties,includingthoserelatedto,withoutlimitation,
managingalargercombinedcompany;streamliningsupplychains,consolidatingcorporateandadministrativeinfrastructuresandeliminatingoverlapping
operations;retainingourexistingvendorsandcustomers;unanticipatedissuesinintegratinginformationtechnology,communicationsandothersystems;and
unforeseenandunexpectedliabilitiesrelatedtotheacquisitionofHillshireBrands’business.Delaysencounteredintheintegrationcouldadverselyimpactthe
business,financialconditionandoperationsofthecombinedcompany.
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