Albertsons 2016 Annual Report Download - page 7

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5
• Potential costs of compliance with additional foreign laws and regulations if the Company seeks and attains a larger
international footprint
• Potential costs of compliance with environmental laws and regulations, including relating to disposal of hazardous waste
and any required removal or remediation of contamination at current or former locations
Food and Drug Safety
• Events 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 valid or not
• Potential recall costs and product liability claims or claims that the Company's products are not of the quality or
composition claimed
Legal Proceedings
• Unfavorable outcomes and the costs to defend litigation, governmental or administrative proceedings or other disputes,
including those related to the information technology intrusions experienced by the Company
• Adverse publicity related to such unfavorable outcomes
• Risks related to infringement of the Company's intellectual property rights
Severe Weather, Natural Disasters and Adverse Climate Changes
• Property damage or business disruption resulting from severe weather conditions and natural disasters that affect the
Company and the Company’s customers or suppliers
• Unseasonably adverse climate conditions that impact the availability or cost of certain products in the grocery supply chain
Disruption to Supply Chain and Distribution Network
• The Company’s ability to effectively maintain its supply chain and distribution network without interruption
• Disruptions due to weather, product recalls, crop conditions, regulatory actions, supplier instability, transportation
interruptions, labor supply or vendor disputes
Changes in Military Business
• Competition in the Company’s military business
• Changes in the commissary system or operating model, reductions in government expenditures or funding, or changes in
military staffing levels or the locations of bases
Adequacy of Insurance
• Variability in actuarial projections regarding workers’ compensation liability and associated medical costs and automobile
and general liability
• Potential increase in the number or severity of claims for which the Company is self-insured
• Adequacy of cybersecurity insurance maintained by the Company to offset any losses or damages related to the
information technology intrusions and any future intrusions experienced by the Company
Volatility in Fuel and Energy Costs
• Availability and cost of energy and fuel to store and transport products
• Volatility of fuel, energy and natural gas prices
• Risks associated with possession of compressed natural gas equipment and a fueling station
Asset Impairment Charges
• Unfavorable changes in the Company’s industry, the broader economy, market conditions, business operations, competition
or the Company’s stock price and market capitalization that could require impairment to intangible assets, including
goodwill, and tangible assets, including property, plant and equipment
Stock Price Volatility
• Fluctuations in the Company’s stock price related to actual or perceived operating performance, any of the factors listed
above or general stock market fluctuations