Albertsons 2014 Annual Report Download - page 7
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ŠInability to keep pace with changing customer expectations and new developments and technology
investments by the Company’s competitors
Governmental Regulation
ŠCosts of compliance with existing laws and regulations and changes in applicable laws and regulations
that impose additional requirements or restrictions on the operation of the Company’s businesses
ŠThe ability to timely obtain permits, comply with government regulations or make capital expenditures
required to maintain compliance with government regulations, including those governing ethical, anti-
bribery and similar business practices
ŠPotential costs of compliance with additional foreign laws and regulations if the Company seeks and
attains a larger international footprint
Food and Drug Safety
ŠEvents that give rise to actual or potential food contamination, drug contamination or foodborne illness
or injury or any adverse publicity relating to these types of concerns, whether or not valid
ŠPotential recall costs and product liability claims
Legal Proceedings
ŠUnfavorable outcomes and the costs to defend litigation, governmental or administrative proceedings
or other disputes
ŠAdverse publicity related to such unfavorable outcomes
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
Disruption to Supply Chain and Distribution Network
ŠThe Company’s ability to effectively maintain its supply chain and distribution network without
interruption
ŠDisruptions due to weather, product recalls, crop conditions, regulatory actions, supplier instability,
transportation interruptions, labor supply or vendor disputes
Changes in Military Business
ŠCompetition in the Company’s military business
ŠChanges in the commissary system, reductions in government expenditures or funding, or changes in
military staffing levels or the locations of bases
Adequacy of Insurance
ŠVariability in actuarial projections regarding workers’ compensation and associated medical costs,
automobile and general liability
ŠPotential increase in the number or severity of claims for which the Company is self-insured
Volatility in Fuel and Energy Costs
ŠAvailability and cost of energy and fuel to store and transport products
ŠVolatility of fuel, energy and natural gas prices
ŠRisks associated with possession of compressed natural gas equipment and a fueling station
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