2 unchanged sentences
Although the risks are organized by headings and each risk is described separately, many of the risks are interrelated.
−Removed: While we believe we have identified and discussed below the key risk factors affecting our business, there may be additional risks and uncertainties that are not
−Removed: presently known or that are not currently believed to be significant that may adversely affect our business, performance, or financial condition in the future.
+Added: While we believe we have identified and discussed below the key risk factors affecting our business, there may be additional risks and uncertainties that are not presently known or that are not currently believed to be significant that may adversely affect our business, performance, or financial condition in the future.
You should not interpret the disclosure of any risk factor to imply that the risk has not already materialized.
−Removed: Deterioration of general economic conditions, an economic recession, periods of inflation, or economic uncertainty have in the past harmed and could continue to harm our business and results of operations.
−Removed: Our business and results of operations have in the past been and may continue to be adversely affected by changes in national or global economic conditions, including inflation, rising interest rates, decreased availability of capital, volatility in financial markets, declining consumer spending rates, recessions, decreased energy availability and increased energy costs (including fuel surcharges), supply chain challenges, labor shortages, the effects of governmental initiatives to manage economic conditions, geopolitical conflicts (including as discussed in the next risk factor), and the negative impacts caused by pandemics, epidemics, and disease, in humans and animals, such as the avian flu.
+Added: Deterioration of general economic conditions, an economic recession, periods of inflation, or economic uncertainty may affect consumers resulting in reductions in consumer spending and have in the past harmed and could continue to harm our business and results of operations.
+Added: Our business and results of operations have in the past been and may continue to be adversely affected by changes in national or global stability and economic conditions, including inflation, rising interest rates;
+Added: changing international trade, tariff, immigration,
+Added: and tax policies;
+Added: decreased availability of capital, volatility in financial markets, declining consumer spending rates, declining benefits or increased limitations under government food assistance programs for consumers;
+Added: rising unemployment;
+Added: decreased energy availability and increased energy costs (including fuel surcharges);
+Added: supply chain challenges;
+Added: labor shortages;
+Added: the effects of governmental initiatives to manage economic conditions;
+Added: geopolitical conflicts (including as discussed in the risk factor below);
+Added: and the negative impacts caused by pandemics, epidemics, and disease, in humans and animals, such as the avian flu.
These economic factors could continue to impact our business and operations in a variety of ways, including as follows:
● consumers shifting purchases to more generic, lower-priced, or other value offerings, or foregoing certain purchases altogether during economic downturns, which could result in a reduction in sales of higher margin products, or a shift in our product mix to lower margin offerings adversely affecting the results of our operations;
−Removed: ● decreased demand in the restaurant business, particularly casual and fine dining, may adversely affect our Foodservice operations;
● volatility in commodity and other input costs could substantially impact our result of operations;
−Removed: ● volatility in the equity markets or interest rates could substantially impact our pension costs and required pension contributions;
● rising interest rates may adversely impact our results of operations;
+Added: ● decreased demand in the restaurant business, particularly casual and fine dining, may adversely affect our Foodservice operations;
+Added: ● volatility in the equity markets or interest rates could substantially impact our pension costs and required pension contributions;
● it may become more costly or difficult to obtain debt or equity financing to fund operations or investment opportunities, or to refinance our debt in the future, in each case on terms and within a time period acceptable to us .
−Removed: Our business, financial condition and results of operations have in the past been and could continue to be adversely affected by disruptions in the global economy caused by geopolitical conflicts.
−Removed: Our business, financial condition and results of operations have been impacted in the past and may be impacted in the future by disruptions in the global economy.
−Removed: The global economy has been negatively impacted by geopolitical conflicts, such as the continuing military conflicts between Russia and Ukraine, which has resulted in governments in the U.S., United Kingdom, and European Union imposing export controls on certain products and financial and economic sanctions on certain industry sectors and parties in Russia, the conflict between Israel and Hamas, and rising tensions elsewhere in the Middle East and between China and Taiwan.
−Removed: Although we have no direct operations in Russia, Ukraine, Israel, elsewhere in the Middle East, China, or Taiwan, we have experienced, or may experience, shortages in materials from these regions, increased costs for transportation, energy, and raw materials from and in these regions, and reduced consumer confidence and consumption in these regions due in part to the negative impact of these conflicts and tensions on the global economy.
−Removed: Further escalations of geopolitical tensions related to military conflicts, including increased trade barriers or restrictions on global trade, could also result in, among other things, cyberattacks, supply disruptions, lower consumer demand, and changes to foreign exchange rates and financial markets, any of which may adversely affect our business and supply chain.
−Removed: In addition, the effects of the ongoing conflicts could heighten many of our known risks described in this Item 1A, Risk Factors .
−Removed: Our existing and future debt may limit cash flow available to invest in the ongoing needs of our business and could prevent us from fulfilling our debt obligations, financing at attractive borrowing costs, or returning cash to stockholders.
−Removed: As of May 26, 2024, we had total debt of approximately $8.44 billion, including approximately $7.02 billion aggregate principal amount of outstanding senior notes.
−Removed: Our ability to make payments on our debt, fund our other liquidity needs, make planned capital
−Removed: expenditures, and return cash to stockholders will depend on our ability to generate cash in the future.
−Removed: Our historical financial results have been, and we anticipate that our future financial results will be, subject to fluctuations.
−Removed: Our ability to generate cash, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond our control.
−Removed: We cannot guarantee that our business will generate sufficient cash flow from our operations or that future borrowings will be available to us in an amount sufficient to enable us to make payments of our debt, fund other liquidity needs, make planned capital expenditures, or return cash to stockholders.
−Removed: Our level of debt could have important consequences.
−Removed: For example, it could:
−Removed: ● make it more difficult for us to satisfy our debt service obligations;
−Removed: ● require us to dedicate a substantial portion of our cash flow from operations to the payment of debt service, reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions, favorable business opportunities, and other general corporate purposes;
−Removed: ● restrict us from repurchasing shares of our common stock;
−Removed: ● negatively impact our ability to pay a cash dividend at an attractive level;
−Removed: ● limit flexibility to plan for, or react to, changes in the businesses and industries in which we operate, which may adversely affect our operating results and ability to meet our debt service obligations;
−Removed: ● limit our ability to refinance our indebtedness or increase the cost of such indebtedness;
−Removed: ● increase our vulnerability to adverse economic or industry conditions, including changes in interest rates;
−Removed: ● limit our ability to obtain additional financing in the future to fund our working capital requirements, capital expenditures, acquisitions, investment, debt service obligations, and other general operating requirements or to enable us to react to changes in our business;
−Removed: ● place us at a competitive disadvantage compared to businesses in our industry that have less debt.
−Removed: Additionally, any failure to meet required payments on our debt, or failure to comply with any covenants in the instruments governing our debt, could result in an event of default under the terms of those instruments and a downgrade to our credit ratings.
−Removed: In the event of a default, the holders of our debt could elect to declare all the amounts outstanding under such instruments to be due and payable.
−Removed: Any default under the agreements governing our debt and the remedies sought by the holders of such debt could render us unable to pay principal and interest on our debt.
−Removed: A downgrade to our credit ratings would increase our borrowing costs and could affect our ability to issue debt and access the commercial paper markets, which we actively utilized in fiscal 2024 for our ongoing funding requirements.
−Removed: Additionally, disruptions in the commercial paper market or other effects of volatile economic conditions on the credit markets could also reduce the amount of commercial paper that we could issue and raise our borrowing costs.
−Removed: We rely on cash from our subsidiaries to meet our cash flow needs and service our debt.
−Removed: A significant portion of our operations are conducted through our subsidiaries.
−Removed: As a result, our ability to generate sufficient cash flow for our needs is dependent to some extent on the earnings of our subsidiaries and the payment of those earnings to us in the form of dividends, loans, or advances and through repayment of loans or advances from us.
−Removed: Our subsidiaries are separate and distinct legal entities.
−Removed: Our subsidiaries have no obligation to pay any amounts due on our debt to provide us with funds to meet our cash flow needs, whether in the form of dividends, distributions, loans, or other payments.
−Removed: In addition, any payment of dividends, loans, or advances by our subsidiaries could be subject to statutory or contractual restrictions.
−Removed: Payments to us by our subsidiaries will also be contingent upon our subsidiaries’ earnings and business considerations.
−Removed: Our right to receive any assets of any of our subsidiaries upon their liquidation or reorganization will be effectively subordinated to the claims of that subsidiary’s creditors, including trade creditors.
−Removed: In addition, even if we are a creditor of any of our subsidiaries, our rights as a creditor would be subordinate to any security interest in the assets of our subsidiaries and any indebtedness of our subsidiaries senior to that held by us.
−Removed: Finally, changes in the laws of foreign jurisdictions in which we operate may adversely affect the ability of some of our foreign subsidiaries to repatriate funds to us.
Inflation, increased interest rates, and other economic conditions including potential recession and credit market disruptions, could negatively impact our business.
−Removed: Customer and consumer demand for our products may be impacted by heightened inflation, increased interest rates and other weak economic conditions including recessionary conditions and credit market disruptions and volatility.
+Added: Customer and consumer demand for our products may be impacted by heightened inflation, increased or fluctuating tariffs, increased interest rates and other weak economic conditions including recessionary conditions and credit market disruptions and volatility.
Continued weak economic conditions may adversely impact consumers causing a decrease in demand for our products from our customers and consumers.
1 unchanged sentence
We have experienced and may continue to experience negative impacts to our business ranging from an inability to collect accounts receivable to supply chain disruptions caused by failures of our counterparties to continue as a going concern due to financial and liquidity issues.
−Removed: Competition Risks
−Removed: Increased competition may result in reduced sales or profits.
−Removed: The food industry is highly competitive.
−Removed: Retail customer consolidation, proliferation of new, competitive products, consumer behavior shifts including retail channel preferences, and consumer price sensitivity continue to contribute to increased competition.
−Removed: Our principal competitors have substantial financial, marketing, and other resources.
−Removed: Increased competition can reduce our sales due to loss of market share or the need to reduce prices to respond to competitive and customer pressures.
−Removed: Competitive pressures also may restrict our ability to increase prices and maintain those price increases, including price increases made in response to commodity and other cost increases.
−Removed: In addition, we may experience delays between the time that we take inflation-related pricing actions and the time that we realize the impact of those actions on our margins and results of operations.
−Removed: Furthermore, our inflation-related pricing actions in response to increased costs of goods sold may negatively impact demand for our products, our market share, and our sales volumes.
−Removed: We sell branded, private brand, and customized food products, as well as commercially branded foods.
−Removed: Our branded products have an advantage over private brand products primarily due to advertising and name recognition, although private brand products typically sell at a discount to those of branded competitors.
−Removed: In addition, when branded competitors focus on price and promotion, the environment for private brand producers becomes more challenging because the price difference between private brand products and branded products may become less significant.
−Removed: In most product categories, we compete not only with other widely advertised branded products, but also with other private label and store brand products that are generally sold at lower prices.
−Removed: A strong competitive response from one or more of our competitors to our marketplace efforts, or a consumer shift towards more generic, lower-priced, or other value offerings, could result in us reducing pricing, increasing marketing or other expenditures, or losing market share.
−Removed: Our margins and profits could decrease if a reduction in prices or increased costs are not counterbalanced with increased sales volume.
−Removed: In fiscal 2024, we made targeted investments in advertising and promotions in response to market conditions.
−Removed: While our activities generally resulted in increased sales volumes in fiscal 2024 for the targeted products, there is no guarantee that our advertising and promotional activities will be successful or that our competitors will not engage in more aggressive advertising and promotion activities which could negatively impact our sales volumes.
−Removed: In addition, substantial growth in e-commerce has encouraged the entry of new competitors and business models, intensifying competition by simplifying distribution and lowering barriers to entry.
−Removed: The expanding presence of e-commerce retailers has impacted, and may continue to impact, consumer preferences and market dynamics, which in turn may negatively affect our sales or profits.
−Removed: If we do not achieve the appropriate cost structure in the highly competitive food industry, our profitability could decrease.
−Removed: Our future success and earnings growth depend in part on our ability to achieve the appropriate cost structure and operate efficiently in the highly competitive food industry, particularly in an environment of volatile input costs.
−Removed: We continue to implement profit-enhancing initiatives that impact our supply chain and general and administrative functions.
−Removed: These initiatives are focused on cost-saving opportunities in procurement, manufacturing, logistics, and customer service, as well as general and administrative overhead levels.
−Removed: Gaining additional efficiencies may become more difficult over time.
−Removed: Our failure to reduce costs through productivity gains or by eliminating redundant costs resulting from acquisitions could adversely affect our profitability and weaken our competitive position.
−Removed: If we do not continue to effectively manage costs and achieve additional efficiencies, our competitiveness and our profitability could decrease.
−Removed: Additionally, our profitability and ability to achieve the appropriate cost structure depends on our ability to fully utilize our manufacturing capacity.
−Removed: If we do not maximize our manufacturing capacity, our profitability could be negatively impacted.
+Added: Our business, financial condition, and results of operations have in the past been and could continue to be adversely affected by disruptions in the global economy caused by geopolitical conflicts.
+Added: Our business, financial condition and results of operations have been impacted in the past and may be impacted in the future by disruptions in the global economy.
+Added: The global economy has been negatively impacted by geopolitical conflicts, and related export controls and economic sanctions, including the continuing military conflict between Russia and Ukraine, conflicts in the Middle East, and rising tensions elsewhere including between China and Taiwan.
+Added: Although we have no direct operations in Russia, Ukraine, the Middle East, China, or Taiwan, we have experienced, or may experience, shortages in materials from these regions, increased tariffs, sanctions or restrictions relating to these regions, and resulting increased costs or volatility relating to transportation, energy, and raw materials as a result of impacts from conflicts in these regions, and reduced consumer confidence and consumption due in part to the negative impact of these conflicts and tensions on the global economy.
+Added: Further escalations of geopolitical tensions related to military conflicts, including increased or fluctuating trade barriers or restrictions on global trade, could also result in cyberattacks, supply or distribution disruptions, lower consumer demand, and changes to foreign exchange rates and financial markets, any of which may adversely affect our business and supply chain.
+Added: In addition, the effects of the ongoing conflicts could heighten many of our known risks described in this Item 1A, Risk Factors .
Commodity Risks
We are subject to increases in the price of raw materials, labor, manufacturing, distribution, and other inputs necessary for the production and distribution of our products, and we may not be able to fully offset this input cost inflation on a timely basis or at all.
−Removed: Many of the components of our cost of goods sold are subject to price increases that are attributable to factors beyond our control, including but not limited to, global economic conditions, trade barriers or restrictions, supply chain disruptions, changes in crop size, product scarcity, demand dynamics, currency rates, water supply, weather conditions, import and export requirements, and other factors.
+Added: Many of the components of our cost of goods sold are subject to price increases that are attributable to factors beyond our control, including global economic conditions, trade barriers or restrictions, supply chain disruptions, changes in crop size, product scarcity, demand dynamics, currency rates, water supply, weather conditions, import and export requirements, and other factors.
The cost of raw materials, labor, manufacturing, energy, fuel, packaging materials, transportation and logistics, and other inputs related to the production and distribution of our products have increased and may continue to increase unexpectedly.
In recent years, input costs have increased materially and at a rapid rate.
−Removed: While we expect moderate input cost inflation in fiscal 2025, we could experience unexpectedly high input cost inflation in specific commodities or across multiple commodities.
+Added: While we expect elevated levels of input cost inflation in fiscal 2026 compared to fiscal 2025, partially driven by increased or fluctuating tariffs, we could experience higher than expected input cost inflation in specific commodities or across multiple commodities.
The Company uses a variety of strategies to seek to offset this input cost inflation such as increasing productivity, cutting costs, increasing pricing, and engaging in commodity hedging.
−Removed: However, we may not be able to generate sufficient productivity improvements or sustain our price increases.
+Added: However, we may not be able to generate sufficient productivity improvements or cost reductions, timely make offsetting price increases, sustain our price increases, or effectively hedge for such inflation.
Commodity price volatility may result in unfavorable commodity positions, the costs of which we may not be able to fully offset on acceptable timelines or at all.
−Removed: To the extent we are unable to offset present and future input cost increases, our operating results could be materially and adversely affected.
+Added: To the extent we are unable to offset present and future input cost increases including over sustained periods of elevated input cost inflation, our operating results could be materially and adversely affected.
Increases in commodity costs have in the past and may continue to have a negative impact on profits.
We use many different commodities such as wheat, corn, oats, various vegetables, vegetable oils, beef, pork, poultry, dairy products, steel, aluminum, and energy.
−Removed: Commodities are subject to price volatility caused by global economic conditions, trade barriers or restrictions, supply chain disruptions, commodity market fluctuations, supply and demand, currency fluctuations, external conditions such as weather, and changes in governmental agricultural and energy policies and regulations.
−Removed: In addition, recent world events have increased the risks posed by international trade disputes, tariffs, and sanctions.
+Added: Commodities are subject to price volatility caused by global economic conditions, trade barriers or restrictions on global trade, supply chain disruptions, commodity market fluctuations, supply and demand, currency fluctuations, external conditions such as weather, and changes in governmental agricultural and energy policies and regulations.
+Added: In addition, recent world events and changes in domestic and global trade policy have increased the risks posed by international trade disputes, tariffs, and sanctions.
We procure a wide spectrum of commodities globally and in the past have faced increased prices for commodities sourced from nations that have been impacted by trade disputes, tariffs, or sanctions.
3 unchanged sentences
We do not fully hedge against changes in commodity prices, and the risk management procedures that we use may not always work as we intend.
−Removed: To mitigate commodity cost increases, we have implemented various strategies that include, among other things, entering into contracted pricing with certain vendors, procuring commodities in periods of favorable market conditions, or entering into various derivative instruments.
+Added: To mitigate commodity cost increases, we have implemented various strategies that include entering into contracted pricing with certain vendors, procuring commodities in periods of favorable market conditions, or entering into various derivative instruments.
These actions may in part mitigate these increased costs, but even by increasing our product prices or implementing cost savings efforts, we may not be able to fully offset these increased costs.
3 unchanged sentences
Changes in the values of these derivatives are generally recorded in earnings currently, resulting in volatility in both gross margin and net earnings.
−Removed: These gains and losses are reported in cost of goods sold in our Consolidated Statements of Earnings and in unallocated general corporate expenses in our segment operating results until we utilize the underlying input in our manufacturing process, at which time the gains and losses are reclassified to segment operating profit.
+Added: These gains and losses are reported in cost of goods sold in our Consolidated Statements of Earnings within general corporate expenses and are reclassified to segment operating results in the period in which the underlying item being economically hedged is recognized in cost of goods sold.
We may experience volatile earnings as a result of these accounting treatments.
2 unchanged sentences
In recent years, our industry has been impacted by supply chain disruptions, transportation issues, labor challenges and continued changes in global economic conditions, which have impacted and could continue to impact our operations and profitability.
−Removed: Continued inflation, rising interest rates, decreased availability of capital, volatility in financial markets, declining consumer spending rates, recessions, decreased energy availability and increased energy costs (including fuel surcharges) have in the past caused and could
−Removed: continue to cause challenges for us, our suppliers, vendors, customers and consumers of our products and may negatively impact our profitability.
+Added: Continued inflation, rising interest rates, decreased availability of capital, volatility in financial markets, declining consumer spending rates, recessions, decreased energy availability and increased energy costs (including fuel surcharges) have in the past caused and could continue to cause challenges for us, our suppliers, vendors, customers and consumers of our products and may negatively impact our profitability.
These supply chain disruptions have impacted our ability to source ingredients and manufacture and distribute our products, and may make it difficult for our customers to accurately forecast and plan for their purchases of our products to optimize restocking, all of which could negatively impact our business and profitability.
+Added: Investments in our facilities and operations, including investments in new facilities, equipment, technologies and digital transformation, may result in periods of decreased production or increased costs and such investments may not achieve the intended financial benefits.
+Added: We continue to incur significant costs to upgrade and maintain various facilities, equipment, or technologies.
+Added: We have committed to investing in automation, connected data, improved equipment, and artificial intelligence to upgrade our operations and increase productivity.
+Added: Additionally, we have in the past, and may in the future, incur increased costs or periods of decreased production relating to upgrading facilities, equipment and technologies, transferring production among our facilities, utilizing third-party contract manufacturers, closing existing facilities, expanding existing facilities, and opening new facilities.
+Added: If the cost of our investments is higher than anticipated, the investments are not sufficient to meet our business needs, we are unable to fully utilize new or upgraded facilities, or we are unable to complete our improvement and expansion projects in a timely manner or in accordance with our specifications, we may be delayed in realizing the intended benefits or our financial performance could be negatively affected.
We have in the past been and may in the future be subject to product recalls, product liability and labeling claims, and changing legal or regulatory requirements, any of which could negatively impact our profitability.
6 unchanged sentences
federal and state laws as well as foreign laws, including consumer protection statutes of some states.
−Removed: The marketing of food products has come under increased regulatory scrutiny in recent years, and the food industry has been subject to an increasing number of proceedings and claims relating to alleged false or deceptive labeling and marketing under federal, state and foreign laws or regulations.
−Removed: Changes in legal or regulatory requirements (such as new food safety requirements, new food labeling requirements for allergens and nutrition information, updated requirements for the use of “healthy” in connection with our food products, and bans on certain food ingredients or packaging materials), evolving interpretations of existing legal or regulatory requirements, or changes in enforcement priorities may result in increased compliance costs, capital expenditures, higher production costs, and other financial obligations that could adversely affect our business or financial results.
+Added: The marketing of food products has come under increased regulatory scrutiny in recent years, and the food industry has been subject to an increasing number of proceedings, investigations, and claims relating to alleged false or deceptive labeling and marketing under federal, state and foreign laws or regulations.
+Added: Changes in legal or regulatory requirements (such as new food safety requirements, new food labeling requirements for allergens, ingredients, and nutrition information, updated requirements for the use of “healthy” in connection with our food products, and bans on certain food ingredients or packaging materials), evolving interpretations of existing legal or regulatory requirements, or changes in enforcement priorities may result in increased compliance costs, capital expenditures, higher production costs, and other financial obligations that could adversely affect our business or financial results.
If we are found to be out of compliance with applicable laws and regulations in these areas, we could be subject to civil remedies, including fines, injunctions, termination of necessary licenses or permits, or recalls, as well as potential criminal sanctions, any of which could have a material adverse effect on our business.
−Removed: Even if a product liability or labeling claim is unsuccessful or is not fully pursued, the negative publicity surrounding any assertion that our products caused illness or injury could adversely affect our reputation with existing and potential customers and our corporate and brand image.
+Added: Even if a product liability or labeling claim is unsuccessful or is not fully pursued, we may incur significant costs defending against such claims and the negative publicity surrounding any assertion that our products caused illness or injury could adversely affect our reputation with existing and potential customers and our corporate and brand image.
Additionally, as a manufacturer and marketer of food products, we are subject to extensive regulation by the U.S.
1 unchanged sentence
Department of Agriculture, and other federal, state, and local government agencies.
−Removed: The Federal Food, Drug & Cosmetic Act (including as amended by the Food Safety Modernization Act), the Federal Meat, Poultry Products, and Egg Products Inspection Acts, and their respective regulations govern, among other things, the manufacturing, composition and ingredients, packaging, labeling, and safety of food products.
+Added: The Federal Food,
+Added: Drug & Cosmetic Act (including as amended by the Food Safety Modernization Act), the Federal Meat, Poultry Products, and Egg Products Inspection Acts, and their respective regulations govern aspects of our operations, including the manufacturing, composition and ingredients, packaging, labeling, and safety of food products.
Some aspects of these laws use a strict liability standard for imposing sanctions on corporate behavior;
5 unchanged sentences
Our reputation could also be adversely impacted by any of the following, or by adverse publicity (whether or not valid) relating thereto:
−Removed: product recalls, the failure to maintain high ethical, social, and environmental standards for all of our operations and activities including our expectations for our supply chain regarding ethical sourcing;
+Added: product recalls;
+Added: claims asserted regarding the health implications of certain food products, specific ingredients, food packaging, or food production methods;
+Added: the failure to maintain high ethical, social, and environmental standards or achieve stated goals for our operations and activities, including our expectations for our supply chain regarding ethical sourcing;
the failure to achieve any stated goals with respect to the nutritional profile of our products;
1 unchanged sentence
or our environmental impact, including use of agricultural materials, packaging, energy use, and waste management.
−Removed: Moreover, the growing use of social and digital media by consumers has greatly increased the speed and extent that information or misinformation and opinions can be shared.
−Removed: Negative posts or comments about us, our brands, or our products on social or digital media could seriously damage our brands and reputation.
+Added: Moreover, the growing use of social and digital media and shopping, health or product evaluation applications by consumers has greatly increased the speed and extent that information or misinformation and opinions can be shared.
+Added: Negative or inaccurate posts or comments about us, our brands, or our products on social or digital media or inaccurate information contained in shopping, health or product evaluation applications which may use outputs derived from artificial intelligence applications could seriously damage our brands and reputation.
Additionally, negative reaction to our marketing and advertising, including our social media content, could result in damage to our brands and reputation.
7 unchanged sentences
If we are unable to obtain access to working capital or if seasonal fluctuations are greater than anticipated, there could be a material adverse effect on our financial condition, results of operations, or cash flows.
+Added: Our existing and future debt may limit cash flow available to invest in the ongoing needs of our business and could prevent us from fulfilling our debt obligations, financing at attractive borrowing costs, or returning cash to stockholders.
+Added: As of May 25, 2025, we had total debt of approximately $8.07 billion, including approximately $7.02 billion aggregate principal amount of outstanding senior notes.
+Added: Our ability to make payments on our debt, fund our other liquidity needs, make planned capital expenditures, and return cash to stockholders will depend on our ability to generate cash in the future.
+Added: Our historical financial results have been, and we anticipate that our future financial results will be, subject to fluctuations.
+Added: Our ability to generate cash, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond our control.
+Added: We cannot guarantee that our business will generate sufficient cash flow from our operations or that future borrowings will be available to us in an amount sufficient to enable us to make payments of our debt, fund other liquidity needs, make planned capital expenditures, or return cash to stockholders.
+Added: Our level of debt could have important consequences.
+Added: For example, it could:
+Added: ● make it more difficult for us to satisfy our debt service obligations;
+Added: ● require us to dedicate a substantial portion of our cash flow from operations to the payment of debt service, reducing the availability of our cash flow to fund working capital, capital expenditures, acquisitions, favorable business opportunities, and other general corporate purposes;
+Added: ● restrict us from repurchasing shares of our common stock;
+Added: ● negatively impact our ability to pay a cash dividend at an attractive level;
+Added: ● limit flexibility to plan for, or react to, changes in the businesses and industries in which we operate, which may adversely affect our operating results and ability to meet our debt service obligations;
+Added: ● limit our ability to refinance our indebtedness or increase the cost of such indebtedness;
+Added: ● increase our vulnerability to adverse economic or industry conditions, including changes in interest rates;
+Added: ● limit our ability to obtain additional financing in the future to fund our working capital requirements, capital expenditures, acquisitions, investment, debt service obligations, and other general operating requirements or to enable us to react to changes in our business;
+Added: ● place us at a competitive disadvantage compared to businesses in our industry that have less debt.
+Added: Additionally, any failure to meet required payments on our debt, or failure to comply with any covenants in the instruments governing our debt, could result in an event of default under the terms of those instruments and a downgrade to our credit ratings.
+Added: In the event of a default, the holders of our debt could elect to declare all the amounts outstanding under such instruments to be due and payable.
+Added: Any default under the agreements governing our debt and the remedies sought by the holders of such debt could render us unable to pay principal and interest on our debt.
+Added: A downgrade to our credit ratings would increase our borrowing costs and could affect our ability to issue debt and access the commercial paper markets, which we actively utilized in fiscal 2025 for our ongoing funding requirements.
+Added: Additionally, disruptions in the commercial paper market or other effects of volatile economic conditions on the credit markets could also reduce the amount of commercial paper that we could issue and raise our borrowing costs.
+Added: We rely on cash from our subsidiaries to meet our cash flow needs and service our debt.
+Added: A significant portion of our operations are conducted through our subsidiaries.
+Added: As a result, our ability to generate sufficient cash flow for our needs is dependent to some extent on the earnings of our subsidiaries and the payment of those earnings to us in the form of dividends, loans, or advances and through repayment of loans or advances from us.
+Added: Our subsidiaries are separate and distinct legal entities.
+Added: Our subsidiaries have no obligation to pay any amounts due on our debt to provide us with funds to meet our cash flow needs, whether in the form of dividends, distributions, loans, or other payments.
+Added: In addition, any payment of dividends, loans, or advances by our subsidiaries could be subject to statutory or contractual restrictions.
+Added: Payments to us by our subsidiaries will also be contingent upon our subsidiaries’ earnings and business considerations.
+Added: Our right to receive any assets of any of our subsidiaries upon their liquidation or reorganization will be effectively subordinated to the claims of that subsidiary’s creditors, including trade creditors.
+Added: In addition, even if we are a creditor of any of our subsidiaries, our rights as a creditor would be subordinate to any security interest in the assets of our subsidiaries and any indebtedness of our subsidiaries senior to that held by us.
+Added: Finally, changes in the laws of foreign jurisdictions in which we operate may adversely affect the ability of some of our foreign subsidiaries to repatriate funds to us.
+Added: Competition Risks
+Added: Increased competition may result in reduced sales or profits.
+Added: The food industry is highly competitive.
+Added: Retail customer consolidation, proliferation of new, competitive products, consumer behavior shifts including retail channel preferences, and consumer price sensitivity continue to contribute to increased competition.
+Added: principal competitors have substantial financial, marketing, and other resources.
+Added: Increased competition can reduce our sales due to loss of market share or the need to reduce prices to respond to competitive and customer pressures.
+Added: Competitive pressures also may restrict our ability to increase prices and maintain those price increases, including price increases made in response to commodity and other cost increases.
+Added: In addition, we may experience delays between the time that we take inflation-related pricing actions and the time that we realize the impact of those actions on our margins and results of operations.
+Added: Furthermore, pricing actions in response to increased costs of goods sold may negatively impact demand for our products, our market share, and our sales volumes.
+Added: We sell branded, private brand, and customized food products, as well as commercially branded foods.
+Added: Our branded products have an advantage over private brand products primarily due to advertising and name recognition, although private brand products typically sell at a discount to those of branded competitors.
+Added: In addition, when branded competitors focus on price and promotion, the environment for private brand producers becomes more challenging because the price difference between private brand products and branded products may become less significant.
+Added: In most product categories, we compete not only with other widely advertised branded products, but also with other private label and store brand products that are generally sold at lower prices.
+Added: A strong competitive response from one or more of our competitors to our marketplace efforts, or a consumer shift towards more generic, lower-priced, or other value offerings, could result in us reducing pricing, increasing marketing or other expenditures, or losing market share.
+Added: Our margins and profits could decrease if a reduction in prices or increased costs are not counterbalanced with increased sales volume.
+Added: In fiscal 2025, we continued to make targeted investments in advertising and promotions in response to market conditions.
+Added: There is no guarantee that our advertising and promotional activities will be successful or that our competitors will not engage in more aggressive advertising and promotion activities which could negatively impact our sales volumes.
+Added: In addition, substantial growth in e-commerce has encouraged the entry of new competitors and business models, intensifying competition by simplifying distribution and lowering barriers to entry.
+Added: The expanding presence of e-commerce retailers has impacted, and may continue to impact, consumer preferences and market dynamics, which in turn may negatively affect our sales or profits.
+Added: If we do not achieve the appropriate cost structure in the highly competitive food industry, our profitability could decrease.
+Added: Our future success and earnings growth depend in part on our ability to achieve the appropriate cost structure and operate efficiently in the highly competitive food industry, particularly in an environment of volatile input costs.
+Added: We continue to implement profit-enhancing initiatives that impact our supply chain and general and administrative functions.
+Added: These initiatives are focused on cost-saving opportunities in procurement, manufacturing, logistics, and customer service, as well as general and administrative overhead levels.
+Added: Gaining additional efficiencies may become more difficult over time.
+Added: Our failure to reduce costs through productivity gains or by eliminating redundant costs resulting from acquisitions could adversely affect our profitability and weaken our competitive position.
+Added: If we do not continue to effectively manage costs and achieve additional efficiencies, our competitiveness and our profitability could decrease.
+Added: Additionally, our profitability and ability to achieve the appropriate cost structure depends on our ability to fully utilize our manufacturing capacity.
+Added: If we do not maximize our manufacturing capacity, our profitability could be negatively impacted.
Consumer and Customer Risks
1 unchanged sentence
Consumer preferences evolve over time and the success of our food products depends on our ability to identify the priorities, tastes and dietary habits of consumers and to offer products that appeal to their preferences.
−Removed: Consumer response to our products may be influenced by a growing number and complexity of factors influencing consumer purchasing decisions beyond taste, nutrition and value, including concerns of consumers regarding broader health and wellness perceptions, obesity, product attributes, sourcing of packaging materials, use of organic or natural ingredients, human rights impacts, environmental impacts, recyclability of packaging and local sourcing of ingredients.
+Added: Consumer response to our products may be influenced by a growing number and complexity of factors (as well as media, social media, and regulatory activity impacting such factors), including taste, nutrition, pack and portion sizes, and concerns of consumers regarding broader health and wellness perceptions, obesity, product attributes, ingredients, food production methods, sourcing of packaging materials, use of organic or natural ingredients, human rights impacts, environmental impacts, recyclability of packaging and local sourcing of ingredients.
Growing use of weight loss medication may cause shifts in consumer preferences and, if we fail to anticipate and appropriately respond to customer preferences, may impact our product sales, financial condition, and operating results.
Introduction of new products and product extensions requires significant development and marketing investment.
−Removed: If our products fail to meet changing consumer preferences or habits, or if we fail to introduce new and improved products on a timely basis, then the return on that investment will be less than anticipated and our strategy to grow sales and profits with investments in acquisitions, marketing, and innovation will be less successful.
−Removed: Similarly, demand for our products could be affected by consumer concerns or perceptions regarding the health effects of certain packaging materials (such as per- and polyfluoroalkyl substances commonly referred to as PFAS), ingredients such as colors or preservatives, sodium, trans fats, sugar, genetically modified ingredients, or other product attributes.
+Added: If our products fail to meet changing consumer preferences or habits or are not perceived by consumers as delivering value, or if we fail to introduce new and improved products on a timely basis, then the return on that investment will be less than anticipated and our strategy to grow sales and profits with investments in acquisitions, marketing, and innovation will be less successful.
+Added: Similarly, demand for our
+Added: products could be affected by consumer concerns or perceptions regarding the health effects of, and changes in regulatory restrictions on, certain packaging materials (such as per- and polyfluoroalkyl substances commonly referred to as PFAS), food production methods, ingredients such as colors or preservatives, sodium, trans fats, sugar, genetically modified ingredients, or other product attributes.
+Added: New or changing limitations on inclusion of our products under government food assistance programs for consumers may also negatively impact demand for our products.
Changes in our relationships with significant customers, including our largest customer, could adversely affect us.
10 unchanged sentences
In addition, larger retailers have the scale to develop supply chains that permit them to operate with reduced inventories or to develop and market their own retailer brands.
−Removed: These customers may also in the future use more of their shelf space, currently used for our products, for their store
−Removed: brand products.
+Added: These customers may also in the future use more of their shelf space, currently used for our products, for their store brand products.
We continue to implement initiatives to counteract these pressures.
8 unchanged sentences
In addition, disputes with significant suppliers, including disputes regarding pricing or performance, could adversely affect our ability to supply products to our customers and could materially and adversely affect our product sales, financial condition, and results of operations.
−Removed: Although our products are manufactured in North America and we source the significant majority of our ingredients and raw materials from North America, global supply has at times been and may continue to be constrained, which has caused and may continue to cause the price of certain ingredients and raw materials used in our products to increase and/or we may experience disruptions to our operations.
−Removed: Additionally, although we have no direct operations in Russia, Ukraine, Israel, elsewhere in the Middle East, China, or Taiwan, we have experienced, or may experience, shortages in materials from these regions, increased costs for transportation, energy, and raw materials from and in these regions, and reduced consumer confidence and consumption in these regions due in part to the negative impact of military conflicts and rising tensions in these areas on the global economy.
−Removed: To date, these conflicts have not had a material impact on our business, financial condition, or results of operations, but continued geopolitical turmoil may negatively impact our supply chain and our ability to manufacture or sell our products.
−Removed: The termination or expiration of current co-manufacturing arrangements could reduce our sales volume and adversely affect our results of operations.
−Removed: Our businesses periodically enter into co-manufacturing arrangements with manufacturers of products.
+Added: Although most of our products are manufactured in North America and we source the significant majority of our ingredients and raw materials from North America, global supply has at times been and may continue to be constrained, which has caused and may continue to cause the price of certain ingredients and raw materials used in our products to increase and/or we may experience disruptions to our operations.
+Added: Additionally, although we have no direct operations in Russia, Ukraine, the Middle East, China, or Taiwan, we have experienced, or may experience, shortages in materials from these regions, increased tariffs, sanctions or restrictions relating to these areas, and increased costs or volatility relating to transportation, energy, and raw materials impacted by these regions, and reduced consumer confidence and consumption in these regions due in part to the negative impact of military conflicts and rising tensions in these areas on the global economy.
+Added: To date, these conflicts have not had a material impact on our business, financial condition, or results
+Added: of operations, but continued geopolitical turmoil may negatively impact our supply chain and our ability to manufacture or sell our products.
+Added: Dependency on contract manufacturing arrangements could impact our sales volume and adversely affect our results of operations.
+Added: Our businesses periodically enter into contract manufacturing arrangements with manufacturers of products.
The terms of these agreements vary.
−Removed: Although many agreements are for a relatively short period of time, some of the co-manufacturing agreements are for extended periods.
+Added: Although many agreements are for a relatively short period of time, some of the contract manufacturing agreements are for extended periods.
Volumes produced under each of these agreements can fluctuate significantly based upon the product’s life cycle, product promotions, alternative production capacity, and other factors, none of which are under our direct control.
−Removed: Our future ability to enter into co-manufacturing arrangements is not guaranteed, and an inability for the Company to obtain favorable co-manufacturing pricing or a decrease in co-manufacturing availability or production capacity could have a significant negative impact on sales volume.
+Added: Our future ability to enter into or maintain contract manufacturing arrangements is not guaranteed, and an inability for the Company to obtain favorable contract manufacturing pricing or sufficient contract manufacturing availability or production capacity could have a significant negative impact on sales volume.
As we outsource certain functions, we become more dependent on the third parties performing those functions.
As part of a concerted effort to achieve cost savings and efficiencies, we have entered into agreements with third-party service providers under which we have outsourced certain information systems, sales, finance, accounting, and other functions, and we may enter into managed services agreements with respect to other functions in the future.
−Removed: If any of these third-party service providers do not perform according to the terms of the agreements, or if we fail to adequately monitor their performance, we may not be able to achieve the expected cost savings or we may have to incur additional costs to correct errors made by such service providers, and our reputation could be harmed.
+Added: If any of these third-party service providers do not perform according to the terms of the agreements, or if we fail to adequately monitor their performance, including their use of new artificial intelligence technologies, we may not be able to achieve the expected cost savings or we may have to incur additional costs to correct errors made by such service providers, and our reputation could be harmed.
Depending on the function involved, such errors may also lead to business interruption, damage or disruption of information technology systems, processing inefficiencies, the loss of or damage to intellectual property or non-public company sensitive information, effects on financial reporting, litigation or remediation costs, or damage to our reputation, any of which could have a material adverse effect on our business.
2 unchanged sentences
The success of our end-to-end supply chain relies on the continued performance of a wide array of third parties.
−Removed: Suppliers, co-manufacturers, third-party outsourcers, warehousing partners, and transportation providers are among our critical partners.
+Added: Suppliers, contract manufacturers, third-party outsourcers, warehousing partners, and transportation providers are among our critical partners.
Although we take steps to qualify and audit third parties with whom we do business, we cannot guarantee that all third parties will perform dependably or at all.
8 unchanged sentences
In addition, changes in such laws may lead to increased costs.
−Removed: Our business is subject to a variety of governmental laws and regulations, including food and drug laws, environmental laws, laws related to advertising and marketing practices, accounting standards, taxation requirements, competition laws, employment laws, data privacy laws, human rights laws, and anti-corruption laws, among others, in and outside of the United States.
−Removed: Our operations are subject to various laws and regulations administered by federal, state, local and foreign government agencies, including, but not limited to, the United States Department of Agriculture, the Federal Food and Drug Administration, the Federal Trade Commission, the Consumer Product Safety Commission, the Occupational Safety and Health Administration, the Environmental Protection Agency, and the Department of Labor.
+Added: Our business is subject to a variety of governmental laws, regulations and executive orders, including food and drug laws, environmental laws, laws related to advertising and marketing practices, accounting standards, taxation requirements, competition laws, labor and employment laws, data privacy laws, human rights laws, and anti-corruption laws in and outside of the United States.
+Added: operations are subject to various laws and regulations administered by federal, state, local and foreign government agencies, including the United States Department of Agriculture, the Federal Food and Drug Administration, the Federal Trade Commission, the Consumer Product Safety Commission, the Occupational Safety and Health Administration, the Environmental Protection Agency, and the Department of Labor.
In particular, the processing, packaging, transportation, storage, distribution, advertising, labeling, quality, and safety of food products, the health and safety of our employees, and the protection of the environment are each subject to governmental regulation.
Additionally, we are subject to data privacy and security regulations, tax and securities regulations, accounting and reporting standards, and other financial laws and regulations.
−Removed: Our failure to comply with applicable laws and regulations could subject us to lawsuits, administrative penalties, and civil remedies, including fines, injunctions, and recalls of our products.
+Added: Our failure to comply with applicable laws and regulations could subject us to investigations, enforcement actions, lawsuits, administrative penalties, and civil remedies, including fines, injunctions, and recalls of our products.
We may suffer losses if changes to regulations require us to change the ingredients we use or how we process, package, transport, store, distribute, advertise, or label our products or include changes that increase our risk of liability for deceptive advertising.
14 unchanged sentences
As a result, climate change could negatively affect our business and operations.
−Removed: While we continue to take important steps to strive toward mitigation of climate risk and impact on climate change, transitioning our business to adapt to and comply with evolving policy, legal, and regulatory changes may impose substantial operational and compliance burdens.
−Removed: As a result, climate change could negatively affect our business and operations.
+Added: While we continue to take important steps to strive toward mitigation of climate risk and the impact of climate change, transitioning our business to adapt to and comply with evolving policy, legal, and regulatory changes may impose substantial operational and compliance burdens.
+Added: Additionally, we may incur increased costs if such regulatory actions are modified or reversed resulting in continued elevated compliance costs.
+Added: As a result, mitigation and compliance efforts relating to climate change could negatively affect our business and operations.
Collecting, measuring and analyzing information relating to such matters can be costly, time-consuming, dependent on third-party cooperation and unreliable.
Furthermore, methodologies for measuring, tracking and reporting on such matters continue to change over time, which requires our processes and controls for such data to evolve as well.
−Removed: Additionally, we may face increased pressure from customers, consumers, investors, activists and other stakeholders to modify our products or operations away from ingredients or activities that are considered to have a higher impact on climate change.
+Added: Additionally, we may face increased pressure from customers, consumers, investors, activists and other stakeholders to modify our products or operations away
+Added: from ingredients or activities that are considered to have a higher impact on climate change.
Such changes to methodologies or lack of progress (whether actual or perceived) could adversely affect our business, operations, and reputation, and increase risk of litigation.
1 unchanged sentence
Our ability to achieve any such strategies or expectations is subject to numerous factors and conditions, many of which are outside of our control.
−Removed: Examples of such factors include, but are not limited to, evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, market trends that may alter business opportunities, the conduct of third-party manufacturers and suppliers, constraint or disruptions to our supply chain, and changes in carbon markets or carbon taxes.
+Added: Examples of such factors include evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, market trends that may alter business opportunities, the conduct of third-party manufacturers and suppliers, constraint or disruptions to our supply chain, and changes in carbon markets or carbon taxes.
We may be required to expend significant resources to achieve these strategies and expectations, which could significantly increase our operational costs.
−Removed: There can be no assurance of the extent to which any of our strategies or expectations will be achieved, or that any future investments we make in furtherance of achieving these strategies or expectations will meet customer or investor expectations.
+Added: There can be no assurance of the extent to which any of our strategies or expectations will be achieved, or that any future investments we make will meet stakeholder expectations.
Failures or delays (whether actual or perceived) in achieving our strategies or expectations related to climate change and other environmental matters could adversely affect our business, operations, and reputation, and increase risk of litigation.
4 unchanged sentences
Additionally, the increase in hybrid working where employees, including third-party employees, access technology infrastructure remotely may create additional information technology and data security risks.
−Removed: If we do not allocate and effectively manage the resources necessary to build and sustain the proper technology infrastructure and associated automated and manual control processes, we could be subject to billing, payment, and collection errors, business disruptions, or damage resulting from security breaches.
+Added: If we do not allocate and effectively manage the resources necessary to build and sustain the proper technology infrastructure and associated automated and manual control processes, including related to new artificial intelligence technologies, we could be subject to billing, payment, and collection errors, business disruptions, or damage resulting from security breaches.
+Added: Failure to implement new technologies could result in lower productivity and higher costs.
If any of our significant information technology systems suffer severe damage, disruption, or shutdown, and our business continuity plans do not effectively resolve the issues in a timely manner, our product sales, financial condition, and results of operations may be materially and adversely affected, and we could experience delays in reporting our financial results.
4 unchanged sentences
Cyberattacks are occurring more frequently, are constantly evolving in nature and are becoming more sophisticated.
−Removed: Additionally, continued geopolitical turmoil, including the Russia-Ukraine military conflict, has heightened the risk of cyberattacks.
+Added: Additionally, continued geopolitical turmoil and military conflicts have heightened the risk of cyberattacks.
While we attempt to continuously monitor and mitigate against cyber risks, including through leveraging multi-sourced threat intelligence, investing in new technologies, and developing third-party cybersecurity risk management capability in support of strategic suppliers, we may incur significant costs in protecting against or remediating cyberattacks or other cyber incidents.
4 unchanged sentences
Additionally, the technology and techniques used in cyberattacks are constantly evolving and the pace and extent of that evolution may accelerate with the use of emerging technologies including artificial intelligence.
−Removed: While we maintain a cyber insurance policy that provides coverage for security incidents, we cannot be certain that our coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on financially reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim.
+Added: While we maintain a cyber insurance policy that provides coverage for security incidents, we cannot be certain that our coverage will be adequate for liabilities actually incurred, that insurance will continue to be available to us on financially reasonable terms, or at
+Added: all, or that any insurer will not deny coverage as to any future claim.
Increased cyber incidents, both in terms of frequency and scale, may impact the availability and cost of cyber insurance globally which may negatively impact our ability to maintain sufficient coverage.
31 unchanged sentences
Amortized intangible assets are evaluated for impairment whenever events or changes in circumstance indicate that the carrying amounts of these assets may not be recoverable.
−Removed: Impairments to goodwill and other intangible assets may be caused by multiple factors including increasing competitive pressures, reduced demand for our products, disruption in our operations as a result of internal and external events including disruptions involving co-manufacturing arrangements, lower than expected revenue and profit growth rates, changes in industry earnings before interest, taxes, depreciation and amortization multiples, changes in discount rates based on changes in cost of capital (interest rates, etc.), or the bankruptcy of a significant customer.
+Added: Impairments to goodwill and other intangible assets may be caused by multiple factors including increasing competitive pressures, reduced demand for our products, disruption in our operations as a result of internal and external events including disruptions involving contract manufacturing arrangements, lower than expected revenue and profit growth rates, changes in industry earnings before interest, taxes, depreciation and amortization multiples, changes in discount rates based on changes in cost of capital (interest rates, etc.), or the bankruptcy of a significant customer.
Any impairment to goodwill or other intangible assets could negatively impact our net worth.
6 unchanged sentences
Strategic Transactions Risks
−Removed: If we are unable to successfully identify, complete or realize the benefits from strategic acquisitions, divestitures, joint ventures or investment, our financial results could be materially and adversely affected.
+Added: If we are unable to successfully identify, complete or realize the benefits from strategic acquisitions, divestitures, joint ventures or investments, our financial results could be materially and adversely affected.
From time to time, we evaluate acquisition candidates that may strategically fit our business objectives.
4 unchanged sentences
Moreover, in connection with contemplated or completed acquisitions or divestitures, we may incur related asset impairment charges that reduce our profitability.
−Removed: Our acquisition, joint venture and investment activities may present financial, managerial, and operational risks.
−Removed: Our acquisition, joint venture and investment activities may present certain risks, including diversion of management attention from existing businesses, difficulties integrating personnel and financial and other systems, effective and immediate implementation of control environment processes across our employee population, adverse effects on existing business relationships with suppliers and customers, inaccurate estimates of fair value made in the accounting for acquisitions and amortization of acquired intangible assets which would reduce future reported earnings, potential loss of customers or key employees, and indemnities and potential disputes with sellers, joint venture partners and investment targets.
+Added: Our acquisition, divestiture, joint venture and investment activities may present financial, managerial, and operational risks.
+Added: Our acquisition, divestiture, joint venture and investment activities may present certain risks, including diversion of management attention from existing businesses, difficulties integrating personnel and financial and other systems, effective and immediate implementation of control environment processes across our employee population, adverse effects on existing business relationships with suppliers and customers, inaccurate estimates of fair value made in the accounting for acquisitions and amortization of acquired intangible assets which would reduce future reported earnings, potential loss of customers or key employees, and indemnities and potential disputes with sellers, joint venture partners and investment targets.
Any of these factors could affect our sales, financial condition, results of operations and cash flows.
Similarly, our divestiture activities may present financial, managerial, and operational risks such as diversion of management attention from existing businesses.
+Added: Our divestiture activity may result in impairment charges and gains or losses on such sales, or lost
+Added: operating income from such divested businesses, may impact our profitability.
Additionally, divestitures may present difficulties separating personnel and financial and other systems, possible need for providing transition services to buyers, adverse effects on existing business relationships with suppliers and customers and indemnities and potential disputes with the buyers and others.
+Added: We may not be able to complete, on terms favorable to us or at all, desired divestitures of businesses that do not meet our strategic objectives.
Any of these factors could adversely affect our product sales, financial condition, and results of operations.
7 unchanged sentences
Additionally, we have licensed certain of our intellectual property rights to third parties, such as Alexia ® and Marie Callender’s ® .
−Removed: While many of these licensing arrangements
−Removed: are perpetual in nature, others must be periodically renegotiated or renewed pursuant to their terms.
+Added: While many of these licensing arrangements are perpetual in nature, others must be periodically renegotiated or renewed pursuant to their terms.
If in the future we are unable to renew such a licensing arrangement pursuant to its terms and conditions, or if we fail to renegotiate such a licensing arrangement, then our financial results could be materially and adversely affected.
1 unchanged sentence
If any third parties bring a claim of intellectual property infringement against us, we may be subject to costly and time-consuming litigation, diverting the attention of management and our employees.
−Removed: If we are unsuccessful in defending against such claims, we may be subject to, among other things, significant damages, injunctions against development and sale of certain products, or we may be required to enter into costly licensing agreements, any of which could have an adverse impact on our business, financial condition, and results of operations.
+Added: If we are unsuccessful in defending against such claims, we may be subject to significant damages, injunctions against development and sale of certain products, or we may be required to enter into costly licensing agreements, any of which could have an adverse impact on our business, financial condition, and results of operations.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.