Albertsons 2013 Annual Report Download - page 6
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Economic Conditions
ŠContinued volatility in the economy and financial and housing markets, the low level of consumer
confidence and high unemployment rates that affect consumer spending or buying habits
ŠIncreases in unemployment, healthcare costs, energy costs and commodity prices, which could impact
consumer spending or buying habits and the cost of doing business
ŠChanges in interest rates
ŠFood and drug inflation or deflation
Labor Relations
ŠThe Company’s ability to renegotiate labor agreements with its unions
ŠResolution of issues associated with rising pension, healthcare and employee benefits costs
ŠPotential for work disruption from labor disputes
Employee Benefit Costs
ŠIncreased operating costs resulting from rising employee benefit costs
ŠPension funding obligations related to current and former employees of the Company and the
Company’s divested operations
ŠRequired funding of multiemployer pension plans and any withdrawal liability
Governmental Regulations
ŠThe ability to timely obtain permits, comply with government regulations or make capital expenditures
required to maintain compliance with government regulations
ŠChanges in applicable laws and regulations that impose additional requirements or restrictions on the
operation of the Company’s businesses
Food and Drug Safety
ŠEvents that give rise to actual or potential food contamination, drug contamination or foodborne illness
or any adverse publicity relating to these types of concerns, whether or not valid
Self-Insurance
ŠVariability in actuarial projections regarding workers’ compensation, automobile and general liability
ŠPotential increase in the number or severity of claims for which the Company is self-insured
Legal and Administrative Proceedings
ŠUnfavorable outcomes in litigation, governmental or administrative proceedings or other disputes
ŠAdverse publicity related to such unfavorable outcomes
Information Technology
ŠDependence of the Company’s businesses on computer hardware and software systems which are
vulnerable to security breach by computer hackers and cyber terrorists
ŠDifficulties in developing, maintaining or upgrading information technology systems
ŠBusiness disruptions or losses resulting from data theft, information espionage, or other criminal
activity directed at the Company’s computer or communications systems
Severe Weather, Natural Disasters and Adverse Climate Changes
ŠProperty damage or business disruption resulting from severe weather conditions and natural disasters
that affect the Company and the Company’s customers or suppliers
ŠUnseasonably adverse climate conditions that impact the availability or cost of certain products in the
grocery supply chain
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