Albertsons 2014 Annual Report Download - page 6

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ŠThe Company’s ability to comply with debt covenants or to refinance the Company’s debt obligations
ŠA downgrade in the Company’s debt ratings, which may increase the cost of borrowing or adversely
affect the Company’s ability to access one or more financial markets
ŠThe availability of favorable credit and trade terms
Economic Conditions
ŠSustained or worsening economic conditions, and the low level of consumer confidence and high
unemployment rates that affect consumer spending or buying habits
ŠIncreases in unemployment, insurance and healthcare costs, energy costs and commodity prices, which
could impact consumer spending or buying habits and the cost of doing business
ŠIncreases in interest rates, labor costs and tax rates, and other changes in applicable law
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
Increased Employee Benefit Costs
ŠIncreased operating costs resulting from rising employee benefit costs
ŠPotential increases in health plan costs resulting from health care reform
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
ŠThe effect of the financial condition of the Company’s pension plans on the Company’s debt ratings
Relationships with Albertson’s LLC and New Albertson’s, Inc.
ŠDisruptions in current plans, operations and business relationships
ŠAbility to effectively manage the Company’s cost structure to realize benefits from the Transition
Services Agreement with each of Albertson’s LLC and NAI
ŠAbility to continue to perform services at the applicable service level under the Transition Services
Agreements
ŠAbility to attract and retain qualified personnel to perform services under the Transition Services
Agreements
Disruption of Information Technology Systems
ŠDependence of the Company’s businesses on computer hardware and software systems that are
vulnerable to security breach by computer hackers and cyber terrorists
ŠRisk of misappropriation of sensitive data, including customer and employee data, as a result of a
cyber-attack or breach and potential related claims
ŠCosts of complying with stricter privacy and information security law
ŠAbility of the IT systems of the Company or its vendors to prevent, contain or detect cyber-attacks or
security breaches
ŠCosts of responding to inquiries, claims or enforcement actions in connection with an attack or breach
resulting in the loss, damage or misappropriation of information, and potential related damage to the
Company’s reputation
ŠDifficulties in developing, maintaining or upgrading information technology systems
ŠBusiness disruptions or losses resulting from failure of these systems to perform as anticipated for any
reason or data theft, information espionage, or other criminal activity directed at the Company’s
computer or communications systems
4