Albertsons Companies (ACI) risk factors, FY2026 10-K

Risks Related to Our Business and Operations

1. 01General economic conditions affecting the food and drug retail industry and various operating factors may affect our business and may adversely affect our business and operating results
2. 02Our operations are dependent upon the availability of a significant amount of energy and fuel to manufacture, store, transport and sell products
3. 03Failure to realize anticipated benefits from our productivity initiatives could adversely affect our financial performance and competitive position
4. 04We may be unable to achieve our corporate social responsibility and sustainability goalsNew
5. 05Failure to attract and retain qualified associates could materially adversely affect our financial performance and our ability to successfully execute our business strategy59% rewritten
6. 06A significant majority of our employees are unionized, and our relationship with unions, including labor disputes or work stoppages, as well as related and other pensions expenses could have an adverse impact on our operations and financial results67% rewritten

Risks Related to Our Industry

1. 07Competition in our industry is intense, and our failure to compete successfully may adversely affect our profitability and operating results
2. 08Failure to timely identify or respond to evolving consumer preferences, including changes in how customers use digital and AI-driven tools, could adversely affect our customer relationships, demand and market shareNew
3. 09Changes in the healthcare industry could adversely affect our financial condition and results of operations53% rewritten
4. 10Certain risks are inherent in providing pharmacy products and services, and our insurance may not be adequate to cover any claims against us

Risks Related to Our Supply Chain

1. 11Product and raw material supply disruptions, especially those related to fresh products, may have an adverse effect on our profitability and operating results
2. 12Severe weather, natural disasters and other climate changes may adversely affect our business
3. 13Threats or potential threats to food and drug safety, the occurrence of a widespread health epidemic and/or pandemic or regulatory concerns in our supply chain may adversely affect our business
4. 14We could be affected if consumers lose confidence in the food supply chain or the quality and safety of our products
5. 15Fuel prices and availability may adversely affect our results of operations
6. 16Increased commodity prices may adversely impact our profitability21% rewritten

Legal and Regulatory Risks

1. 17Unfavorable changes in government regulation may have a material adverse effect on our business27% rewritten
2. 18Tax matters could adversely affect our results of operations and financial conditions
3. 19Unfavorable changes in, failure to comply with, or increased costs to comply with environmental laws and regulations could adversely affect us. The storage and sale of petroleum products could expose us to potentially significant liabilities
4. 20We are subject to, and may in the future be subject to, legal or other proceedings that could have a material adverse effect on us35% rewritten
5. 21The inability to insure or have adequate amounts of insurance against the risks we face may have a material adverse impact on our results of operations

Risks Related to Information Security, Cybersecurity, Data Privacy and Artificial Intelligence Technologies

1. 22We may be adversely affected by risks related to our dependence on IT systems. Any future changes to or intrusion into these IT systems, even if we are compliant with industry security standards, could materially adversely affect our financial condition and operating results
2. 23Improper activities by third parties, exploitation of encryption technology, new data-hacking tools and discoveries and other events or developments may result in future intrusions into or compromise of our networks, payment card terminals or other payment systems
3. 24The loss of confidence from a data security incident involving our customers, employees or vendors could materially adversely affect our financial condition and operating results
4. 25We and our third parties may use artificial intelligence in our business, which could result in competitive and reputational harm, and legal liability, and adversely affect our results of operations

Risks Related to Our Indebtedness

1. 26Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under our indebtedness
2. 27We may incur substantially more debt in the future
3. 28To service our indebtedness, we require a significant amount of cash, and our ability to generate cash depends on many factors beyond our control
4. 29Our debt instruments limit our flexibility in operating our business
5. 30Increases in interest rates, a downgrade of our credit ratings and/or instability in the credit market could negatively affect our financing costs and our ability to access capital

Risks Related to Owning Our Common Stock

1. 31The price of our common stock may be volatile or may decline regardless of our operating performance, and you may suffer a decline in value
2. 32Our largest stockholder is Cerberus, which may have conflicts of interest with other stockholders in the future
3. 33Provisions in our charter documents and Delaware law may prevent attempts by our stockholders to replace or remove our current management, even if beneficial to our stockholders
4. 34Our ability to pay dividends to our stockholders is restricted by applicable laws and regulations and requirements under certain of our securities and debt agreements, including the ABL Facility, and our existing notes