Albertsons 2006 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2006 Albertsons 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.

Page out of 85

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

Economic and Industry Conditions
• Adverse changes in economic conditions that affect consumer spending or buying habits
• Food price inflation or deflation
• Increases in energy costs and commodity prices
• The availability of favorable credit and trade terms
• Changes in interest rates
Competitive Practices
• Competition from other retail chains, supercenters, non-traditional competitors and emerging alterative
formats in our retail markets
• The impact of consolidation in the retail food and supply chain services industries
• Declines in the retail sales activity of our supply chain services customers due to competition or
increased self-distribution
• Changes in demographics or consumer preferences that affect consumer spending habits
Security and Food Safety
• Business disruptions or losses resulting from wartime activities, acts or threats of terror, or other
criminal activity directed at the grocery industry, the transportation industry, or computer or
communications systems
• Other events that give rise to actual or potential food contamination, drug contamination or food-borne
illness
Labor Relations and Employee Benefit Costs
• Potential work disruptions resulting from labor disputes
• Increased operating costs resulting from rising employee benefit costs or pension funding obligations
• The ability to hire, train or retain employees
Expansion and Acquisitions
• Our ability to successfully combine our operations with the acquired businesses of Albertsons, pursuant
to the Proposed Transaction, to achieve expected synergies and to minimize the diversion of
management’s attention and resources
• The adequacy of our capital resources for future acquisitions, the expansion of existing operations or
improvements to facilities
• Our ability to locate suitable store or distribution center sites, negotiate acceptable purchase or lease
terms, and build or expand facilities in a manner that achieves appropriate returns on our capital
investment
• Our ability to make acquisitions at acceptable rates of return, assimilate acquired operations and
integrate the personnel of the acquired business
Liquidity
• Additional funding requirements to meet anticipated capital needs
• The impact of acquisitions, including the Proposed Transaction on borrowing costs and future financial
flexibility
30